The Sky's the Limit: Cloud Computing Seen as a Driver for CIOs Looking to Advance to the CEO Role
"The Future Role of the CIO 2011" Report From CA Technologies Reveals That CIOs Believe Cloud Computing Could Better Position Them as Future CEOs
ISLANDIA, N.Y., Oct. 19, 2011 /PRNewswire/ -- CA Technologies (NASDAQ: CA) today released a new global report revealing how cloud computing is transforming how CIOs view themselves and their role in their business. Of the CIOs surveyed, 54% believe that cloud computing has enabled them to spend more time on business strategy and innovation. In theory, the likelihood of CIOs making the transition to CEO is increasing, but in reality, only 4% of CEOs have raised from the CIO ranks, suggesting that CIOs are being overlooked for top leadership roles in most companies.
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"The Future Role of the CIO" report by CA Technologies uncovered those CIOs who have adopted cloud computing are more driven than their non-cloud-adopting peers. Further, approximately 71% who have adopted cloud computing see their position as a viable path to pursue other management roles, compared to only 44% of non-cloud adopting CIOs. Of those surveyed, 39% of cloud adopting CIOs versus 24% of non-cloud adopting CIOs see their current job as a stepping stone to the CEO position in particular. This illustrates a tie between cloud computing and CIO ambition.
"We already know that cloud computing is revolutionary in terms of what it can do for business, but it is also breeding a new type of technology leader—one who understands that by leveraging the power of the cloud to enable innovative and strategic business services, he or she is uniquely positioned to impact the business—and exceptionally empowered to lead it," said Jacob Lamm, executive vice president of Strategy and Corporate Development, CA Technologies.
More than half of the CIOs surveyed said they felt ideally positioned to move into the CEO role as cloud computing allows them to spend more time on innovation, business strategy and driving business effectiveness. However, they face fierce competition; 42% acknowledge that while they have the necessary skills to step up to the CEO role, other job roles have greater experience in using those skills.
According to 58% of survey participants, the CIO role is still viewed as a technical support function, which is the reason why relatively few CIOs have successfully made the transition to CEO. A lack of 'digital literacy' in the boardroom is compounding this problem, with one in four CIOs stating that their board was 'digitally illiterate' and did not understand the impact of new and emerging technologies. Even more concerning, 39% of CIOs said that the board did not understand the value that IT brings to the business, causing a lack of responsiveness to the market and missed business opportunities.
Perceptions are changing as 51% reported that the C-level management team sees the role of the CIO becoming increasingly important within the organization, which suggests that the boardroom view of the CIO is already changing.
"Today, CIOs with an aptitude for articulating the true potential of IT on the bottom-line can continue evolving far beyond the purely technical role profile still regularly associated with the job. The fact is, many CIOs have a greater strategic understanding of the challenges and opportunities their businesses should address than they're given credit for. It really is a case of information is knowledge, and knowledge is power," comments Sarah Greensmith, Managing Director – IT at Hudson, the executive search specialists.
CIO cloud adopters are not complacent, with 84% saying they need new skills to remain effective compared to 62% of 'non-clouders.' Specifically, 51% of CIOs deemed skills in commercial procurement to be vital. Cloud CIOs also prioritized service performance, and negotiation and sales skills as more important compared to their non-cloud adopting counterparts.
"When looking at the competencies of a CEO, the ability to communicate externally as well as internally is key. This is also now a component of the CIO's role. The ability to take knowledge and the skills of communicating to and managing internal stakeholders, into the outside world, will see a new breed of CIOs who naturally adapt well into the CEO mould," adds Greensmith.
"This survey demonstrates that cloud computing is positively impacting the ambitions of today's CIO and giving rise to a new breed of business savvy technology leaders. To ignore this trend or what these leaders could bring to the leadership of an organization will hinder business competitiveness and growth," concluded Lamm.
About the Research Methodology
CA Technologies commissioned independent specialist technology market research company Vanson Bourne to undertake the research upon which the report is based. 685 telephone interviews were conducted during summer 2011 amongst CIOs in organizations of 500 or more employees in the telecoms, retail, financial and manufacturing sectors. Country breakdown: 30 CIOS were interviewed in each of the following countries: UK, France, Germany, Italy, Spain, Benelux, Austria/Switzerland, Israel, the Nordics, Australia, China, Hong Kong, India, Malaysia, Singapore, Korea, Taiwan, Thailand, Canada, the USA, and 15 within Portugal.
*Using companies selected from Forbes' list of the 2000 World's Biggest Public Companies (calculated April 2011), the research consisted of tracking the career paths of 685 CEOs at companies across four verticals in 21 countries/regions. Revenue and number of employees (500 minimum) were identified for each company using resources such as Business Week and Reuters, along with the previous role, overseas experience and professional qualifications of each CEO.
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About CA Technologies
CA Technologies (NASDAQ: CA) is an IT management software and solutions company with expertise across all IT environments – from mainframe and distributed, to virtual and cloud. CA Technologies manages and secures IT environments and enables customers to deliver more flexible IT services. CA Technologies innovative products and services provide the insight and control essential for IT organizations to power business agility. The majority of the Global Fortune 500 relies on CA Technologies to manage evolving IT ecosystems. For additional information, visit CA Technologies at www.ca.com.
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