CIOs still have their work cut out to keep up with the pace of innovation

New research into the prevalence and causes of shadow IT suggests that many CIOs are not able to deliver the innovation required by their organisations, presenting significant challenges in the development of co-ordinated IT strategies in the enterprise.

The research, conducted by Vanson Bourne, polled 200 business decision makers and found that 67 per cent had been commissioning and sourcing IT products from outside the IT department for two years or more. Furthermore, over half also felt that shadow IT activity would increase in their organisation over the next two years because it is quicker (cited by 57 per cent), that they are more likely to get the products they want (40 per cent), and that they understand their needs better than the IT department (41 per cent).

Andy Wilton, Claranet’s CIO, says: “This research suggests that large numbers of IT leaders have more work to do to align their IT departments with the needs of the wider business. Many CIOs feel tied down to just keeping the lights on and while understandable, the knock-on effect of this approach is that more business leaders are taking it upon themselves to source their own IT.

“The risk is not that people outside the IT department are having a large role in procuring IT. Indeed, individual units within an organisation have a role to play because they bring specific knowledge of their requirements. The risk is that the result will be an uncoordinated and siloed IT set-up with duplicated services and uncontrolled costs across the organisation. CIOs need to move beyond the gatekeeper function and embrace a new world, in which they are able to provide the tools and support that business unit heads need to make effective, coordinated IT decisions.”

The research follows a recent study by Deloitte that found that CIOs are twice as likely to prioritise the delivery of IT services over increasing profits, growth, and driving innovation.

Wilton concludes: “CIOs’ budgets have been put under a lot of pressure since the recession in 2008 so it is not surprising that many have had to focus on the basics. The problem is that businesses do not stand still and the consumerisation of IT has put more power into the hands of users than ever before. The good news is that IT budgets are, overall, on the increase. This will give space for IT leaders to find a new balance in their collaboration with their colleagues to innovate new solutions.”