Bob Bailkoski, Global Chief Executive Officer of Logicalis Group, International IT Solutions and Managed Services Provider.
As organizations continue to invest heavily in next-generation technologies, chief information officers (CIOs) are facing growing pressure to demonstrate the commercial impact of their spending. From AI pilots to security optimization, technology leaders must balance investment with genuine value creation. The traditional role of enabling business strategy is evolving into something more fundamental—helping to shape the future of their organizations.
Every year, my company takes the temperature of the CIO community to understand their ambitions and pressures. In 2024, CIOs were evaluating the potential of next-generation technologies. This year, our report found a shift from exploration to outcomes. Eighty-five percent of our respondents said there’s mounting pressure for “technology to demonstrate tangible business impact” within their organizations. And this goes beyond straightforward returns on investment (ROI), with 95% investing in technology to create entirely new revenue streams to drive business growth over the next year.
For CIOs facing this new mandate, navigating the path ahead might appear challenging. Here are four tips to help avoid pitfalls, maximize value and embrace the potential of technology:
Focus on value creation.
Advancements in technology, including AI, machine learning and the Internet of Things, have the potential to unlock countless new business opportunities, whether by increasing efficiencies, improving customer experiences or even unlocking new markets. Still, the real challenge for CIOs is ensuring these technologies deliver the promised returns.
To stay ahead, leaders need to align tech advancement with strategic business goals, constantly evaluating ROI or growth potential. The era of experimentation is over; today, businesses are looking for demonstrable value. When it comes to next-generation technologies, a laser focus is required to ensure business needs are met and investments are driving the organization forward.
Avoid the security spending black hole.
Cybersecurity remains a fundamental issue for all corporate businesses. Gartner predicted that this year, cybersecurity spending will increase by more than 15% and reach $212 billion. Despite high levels of spending, our research shows that 51% of respondents lack security solutions that meet their organization’s needs. With most tech leaders juggling limited time and resources alongside an increasing need to demonstrate ROI on security spend, it raises the question: How do they ensure security investments are truly effective?
To avoid a security spending black hole, businesses must streamline their approach. Instead of adding more tools and layers to security solutions, tech leaders who spend smarter and tailor their support will achieve better protection while maximizing the impact of their investments.
Evaluate whether partnerships are delivering.
Partnerships play a pivotal role in the long-term success of technology implementation and management, but not all partnerships are created equal. A significant 59% of CIOs told us the solutions their vendors offer are often too complex and difficult for them to effectively manage.
To fully feel the benefits, tech leaders need to develop and strengthen partnerships that align with business objectives. Whether working with individual vendors or managed service providers, ensure you’re working with the right partner to access solutions that will increase effectiveness and unlock value.
Tackle the tech sustainability challenge—and win.
At a time when environmental, social and governance (ESG) is at risk of being undermined, technology’s role in driving sustainability has become even more crucial. Tech leaders must focus on the big picture and let sustainable tech investments prove their ethical and commercial value.
It’s already paying off for those who do. Research from KPMG found that 70% of U.S. CEOs saw improvements in their companies’ financial performance from their ESG efforts. Moreover, our report found that 91% of CIOs have seen financial benefits from integrating environmental technologies. These can also enhance business resilience and help meet immediate and long-term sustainability targets.
The CIO role is no longer centered around simple IT management; it is core to business leadership. With the pressure to deliver tangible results ever-growing, CIOs who focus on value creation, strategically manage security investments, continually evaluate partnerships and embrace the potential of ESG initiatives can see the rewards. When balanced correctly, CIOs can unlock the true value of technology and propel their organizations toward sustained growth, innovation and long-term corporate success.
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