Management lacking IT knowledge?

Why is it that we still come across people in management and board positions lacking IT knowledge?

For over ten years, we have preached how IT is part of the core business, and today Swedish companies will stop working if the lights go out on a server. Executive leaders can’t even navigate their own ERP system when data-driven decisions are made, even at the IT companies. Instead, they rely on administrative functions within the company to obtain basic information for decision-making. In addition, the CEO continues to rely on the CIO for basic IT knowledge. If management were more IT-savvy, we would not have roles as CDO or CTO today.

Business-financed IT (i.e., consumption outside the IT budget) increased in 2021 by 2.7%, reaching a value of SEK 41.92 billion. Of course, it’s a way to internally distribute risks, commitment and the classic recipe to "cook the books". But it can also be seen as a measure of dissatisfaction directed at internal IT resources or the inability to structure digitalization. In the same breath, there is a digital business risk in Sweden of SEK 70 billion and SEK 500 billion in possible total Swedish sales increase for the IT companies. Of course, when the core business reduces the list of requirements, it is more convenient and faster to "shop away". IT is becoming an increasingly complex issue that increases the segregation of Swedish companies caused by an IT knowledge gap in Swedish management teams. We are a small country, and we need all companies to stand up to global competition and the power of innovation.?

There is a need for increased industrialization of IT to streamline Swedish business life, not fighting for competence between IT companies and IT consumers. Sweden needs to stratify the IT companies and improve each IT company's degree of specialization. We have a strong history in Swedish manufacturing; let's learn lessons and ensure that IT service providers erode the complexity to a more straightforward consumption of IT and let the IT specialist companies become subcontractors to the IT service providers. Just as for the automotive industry, the power of innovation lies with the IT specialists (subcontractors) and the customer understanding within the IT service providers.

Swedish companies should increase the requirement for IT competence in all leading positions to have increased digitising power. The IT companies need to see the synergies of working more closely together to achieve increased value for the IT consumer without creating suspicion and raising the acquisition flag. Too often, Swedish IT companies, with different pieces of the puzzle, march to our Swedish companies and ask the management team with the CIO in the lead to solve the puzzle, usually with limited competence, in a market where complexity and vulnerability increase.?The heavy burden on the CIO / CTO / CDO shoulders continues to grow and grow.