Infotech Lead India: CIOs in Asia Pacific region say that their CEOs believe 16 percent of IT investments are wasted.
The 2013 Gartner CEO and Senior Executive Survey says CEOs foresee an 11 percent increase in the presence of the CIO role within their enterprises by the end of 2014.
“Considering that IT investments are made to improve the performance of other business areas such as sales, marketing, supply chain and so on, any wasted IT investments affect them as well,” said Gartner vice president and distinguished analyst Partha Iyengar.
The survey points out that there is a 12 percent drop in the head of IT title within enterprises, possibly signifying that CEOs intend to elevate this role to full CXO status.
Gartner says 31 percent of CEOs see themselves taking on a more direct role in technology-related issues, in addition to the CIO.
According to the survey, 70 percent of Asia Pacific CEOs believe they have a good understanding of IT-related management issues
CEOs expect their CIOs to deliver higher levels of business value. However, 55 percent of CEOs see the biggest challenge faced by their CIOs as getting the basics right.
Gartner says 32 percent Asia Pacific CEOs see themselves as aggressive adopters of business and IT innovation while 31 percent see themselves as fast followers.
69 percent of CEOs say that their plans for investment and growth in 2013 and 2014 are fairly clear and strong despite uncertain economic conditions. CEOs are targeting different customer requirements, new technology-driven capabilities and new geographies. Increasing investment areas in 2013 are product enhancement, IT and marketing.
CEOs are also concerned about advanced economies (Europe especially) that are entering another major recession. Oil scarcity, weak IP protection and the lack of sufficient skilled resources are also especially concerning for CEOs in the region, given the strong focus on new product enhancement and geographical expansion.