5 CIO and IT Leaders Challenges for 2016

Challenge #1: Prepare for the IoT data explosion

The Internet of Things (IoT) is poised to explode. Gartner predicts that the amount of connected “things” will reach 25 Billion by the year 2020.

This rapid growth brings both opportunities and challenges. On one hand, it promises to make everything more intelligent and efficient. We’re already seeing these advancements in the rise of web connected buildings, smart cars, and even smart clothing.

However, these “smart” devices generate massive amounts of data. The challenge facing CIOs revolves around making sense of this data influx. How will you collect and capitalize on this upcoming avalanche of data?

“There are a lot of people talking about the potential of the Internet of Things (IoT) and CIOs will definitely be starting to get more questions about how it will affect their business and how they can leverage it to gain competitive advantage,” says Nic Grange, CTO at Retriever Communications. “Even if they believe it is overhyped they won’t be able to ignore it. They’ll need to formulate a strategy on what their organization is going to do about it over the next 12-18 months. This may just involve experimentation to start with. How far they can take it will depend on how advanced they are in the more traditional areas mentioned above which are key to supporting an ever-expanding and dispersed infrastructure.”

Challenge #2: Deliver a clear view of your data (across many systems)

Is this a new challenge? Not at all. It’s a challenge that’s plagued businesses for years, and only grows worse with time. They operate on multiple systems–not all of which communicate with each other. This is only complicated by the rise of the cloud. Instead of simply tying in-house applications together, businesses must now integrate data from both cloud and in-house systems.

Why is this such a challenge? Without integration, data access is limited. Creating simple reports is a time-consuming process. I still see many businesses pulling data out of disparate systems and merging it in spreadsheets. Not only is this an error-prone method, it wastes time.

The problem: We live in a data-driven world. More than ever, your ability to turn your data into meaningful management information plays a critical role in your business. However, many businesses still struggle in this area–a problem which will lead to bigger problems if not addressed.

Solving this problem requires that CIOs make integration a top priority. Also, as explained below, CIOs must demand integration from their providers if they hope to deliver easy data access.

“From my perspective at a health IT company, the biggest challenges CIOs and IT leaders will face is interoperability,” says Sarah McMullin, Director of Business Development at Camino Information Services. “Getting software and applications to play nicely together shouldn’t be as hard as it is, but the major players in the market hold on to the keys so tightly for fear they will be run out of business by someone more agile. “Don’t improve on our product by bolting yours onto the front because people might notice our product needs improvement.” There are always a lot of growing pains at the cost of better results for end users. This challenge of interoperability must first be addressed from the inside out: Be willing to work with others, even outsiders. Rather than seeing new products as threatening, see how they can improve your existing offering in a way that increases sales. For CIOs who are purchasing and not developing, demand more from your provider. Demand interoperability.”

Challenge #3: Bridge the growing skills gap

What do CIOs say is the single largest barrier to success? Talent. As Gartner mentions in their CIO Agenda Report, “Talent has now been recognized globally as the single biggest issue standing in the way of CIOs achieving their objectives.”

This isn’t a new problem, but I include it in this list because it’s such an important challenge. As technology evolves at breakneck speed, this IT skills gap is widening. Businesses are having more and more trouble finding IT pros with the modern skills they require–and the problem is only growing worse.

How can you address this skills gap? Gartner outlined a few strategies CIOs should try in their CIO Agenda Report mentioned above. Additionally, this article also lists 6 ways to address the skills gap.

Challenge #4: Adapt to the mobile workforce

Mobile usage has exploded, and brings major changes for CIOs and IT leaders. Mobile not only changes how we access and interact with business applications, it changes the way we work.

How so? Mobile devices largely eliminate the need to work in a physical location. In fact, Forrester finds that one-third of all employees are considered “anywhere/anytime workers.” More and more, a modern workforce is a mobile workforce.

The challenge for CIOs: How will you enable this mobile workforce, while securing your data?

“One of the biggest challenges facing CIO’s and IT professionals is the rise of mobile work environments,” says Fred Guelen, President of North America and CFO of Planon. “Last year marked the first time that access to the internet via mobile devices, such as phone and tablets, surpassed access via desktop and laptop computers, according to smartinsights.com. Employees no longer arrive en masse at 9am and leave at 5pm, which requires employers to have an exceptional amount of flexibility in terms of “time in the office.” While companies must embrace the flexible workspace, it requires new ways to foster more efficient collaboration, knowledge-sharing, flexibility, speed, innovation, and productivity through technology.

Over the next decade, new smart assets and facilities will enter offices, factories, and homes in numbers we’ve never seen before. A strong CIO or IT leader understands that to manage a flexible workspaces, it will be critical to bring all relevant data like spaces, workplaces, floor areas, departments and people together in one central database is the first step in professional space management and workplace innovation.”

Challenge #5: Make Security an Organizational effort

The number of U.S. data breaches reached a record high in 2014, with 43% of companies experiencing a data breach. That number is expected to rise this year.

One study finds that the average cost of a data breach has increased to $3.8 million–up from $3.5 million a year ago. This includes all aspects of a breach, like hiring experts to fix it, offering help to your customers, repairing your damaged reputation, and more.

“In 2016, keeping safe against cyber attacks will stay among the main IT challenges,” says Michael Fimin, CEO and co-founder of Netwrix. “Higher risks, stricter regulations and more publicity around data breaches make IT security a common issue for most organizations. While hacks continue to collect millions of business critical and personal data records from social media, health care and financial institutions, more business owners and executives become aware of the risks. The business goal transforms from prevention of cyber security attacks to its timely detection and adequate response.”

“Regular control over user behavior becomes a high-level task for CIOs and IT leaders due to the impact of user mistakes and malicious insiders on security posture. The need to know what is happening across the network will bring us to the era of swift evolution and wide adoption of automated user behavior analytics.”

How can you keep your business data secure? Start with the main cause of security breaches: Your employees. The fact is, studies find that human error is the leading contributor to breaches.

The security challenge facing CIOs revolves around creating a culture of security. It must become an organizational effort, starting from the top down.

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