CIOs complain that silos between IT and business functions hamper successful digital transformations

Summary

93% of 700 CIO’s globally (US, UK, France, Germany, Australia, Singapore, Brazil, Mexico) surveyed by software company Dynatrace said their ability to implement successful Digital Transformation strategies is hindered by challenges including IT and business teams working in separate silos, which is also preventing them from effectively keeping up with cloud-based architectures. The lack of seamless integration between these functions means that much time and resources are wasted reacting to system gaps and manually integrating data from different parts of the organization. Resources spent in this manner are resources that cannot be devoted to profitability enhancing initiatives such as increased sales or lowered costs.

Other highlights from the report include:

  • 74% report being ‘fed up with the need to piece together data from multiple tools to assess the impact of IT investments on the business’
  • 49% say they have ‘limited data and visibility into users’ perspectives on how digital services are performing’
  • ‘Only 14% of organizations have a single platform that enables cross-team collaboration and a true understanding of IT’s business impact’
  • 40% of CIO’s say ‘limited cross-team collaboration makes it more difficult to identify the severity of an issue and minimize its overall business impact

Report

Analysis

We have previously written about how successful digital transformations require input, buy-in and coordination from all business units. Companies that do this successfully, such as Cyberhedge 5-star rated Home Depot, have seen their digital transformation strategies directly lead to material improvements across their operational and financial results and put them at a competitive advantage in their business sectors.

The pattern reported in the Dynatrace survey is one that we have seen repeatedly in our own research. A minority of organizations have best-in-class cyber governance. This includes top down messaging from the C-Suite that cybersecurity and digital transformation are every department and every employee’s responsibility, and strong cross organizational communication and coordination puts these words into practice. A larger group of laggard organizations that struggle with these issues see cyber security as mainly the responsibility of the IT department with disjointed or nascent digital transformation strategies. The consistent outperformance of the top quintile ranked companies (the Cyberhedge 5-stars) in cyber governance over the bottom quintile ranked companies (the Cyberhedge 1-stars) across all sectors in the US and Europe is market-based proof that these differences matter.

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