Given the constant pace of change in business, it’s important for organizational leaders to strategize over how the company will need to change over three, five, or even ten years.
In many respects, most businesses have undergone dramatic changes over the past several years. Consider the percentage of revenue that’s now generated through digital channels compared to five or ten years ago.
Still, digitization swings both ways and provides consumers with more clout than ever. According to an Accenture study, 35% of banks’ market share in North America could be up for grabs by 2020 due to continued inroads made by online-only players.
The changes occurring in the marketplace offer CIOs tremendous opportunities to help fellow C-level executives pave the way for new ways of conducting business. This includes changes that can be made to IT infrastructures that can provide the underlying flexibility for companies to add new lines-of-businesses or innovative ways of supporting customers.
For instance, in the heavy machinery industry, Schindler’s PORT technology has reduced elevator wait times by 50% by predicting elevator demand patterns, calculating the fastest time to a destination, and by assigning the most appropriate elevator in a building to move passengers quickly, according to Harvard Business Review.
For its part, Progressive Casualty Insurance Company has been able to transform its business model for automotive insurance by gathering data on insured parties’ driving behavior instead of simply relying on their driving history.
Meanwhile, customer behaviors in nearly every industry have also changed considerably as a result of digital disruption. Customers are more mobile and empowered than ever. And they’re not afraid to use their voices to share their delight or discontent regarding their experiences with a company’s products, support, or services.
This changing dynamic between customers and companies is also shaping the future path for businesses and how they need to transform themselves to become more customer-centric. The CIO can play an active role in guiding this transformation.
Companies can use a variety of technologies, including marketing automation tools and analytics, to gain a deeper understanding of individual customers, including their behaviors, sentiments, recent transactions, and other activities that can be used to provide more personalized and relevant offers, messaging, and support.
CIOs can also identify opportunities for companies to use cloud and other hosted services which can provide the organization with greater flexibility and agility that’s needed to support future business lines and new ways for supporting customers. By meeting regularly with the CEO and other members of the strategic planning committee, the CIO can offer their advice on ways in which technology can be used to support future business requirements.