#PanditSentiment: CIO2.0 to CIO3.0 - Transformation needed to convert information to intelligence in the new data, AI, and GPT economy

William Synnott and William Gruber first articulated the CIO (chief information officer) term in their?1981?book Information Resource Management. The CIO role evolved more in the 1980s , as technology became more important to business operations. The CIO role was a technical position focused on managing IT infrastructure, processes, resources, and information aka data. In the 1990s with the advent of the internet became more around securing information. Thereafter, in the first twenty years of this century, the role started becoming a more strategic role focused on using technology to drive innovation and achieve business goals.

However, in the last few years, the new economy is evolving around data, artificial intelligence , and GPT (generative pre-trained transformers.) Accordingly, the CIO role needs to quickly change from chief information officer to chief intelligence officer to support the fast-changing pace of data-driven innovation so that organizations can strategically be successful. The following are the 3 main reasons:

1.?????Existential Importance of Data, AI, or GPT for Organizations : Many firms are still depending on CIOs to mainly manage and secure IT infrastructure. While the firms that are growing and winning in the new data-driven economy are winning the race because of effective and efficient use of information aka data to convert it into intelligence to make tactical and strategic decisions. FAANG companies are good examples of the same. Enterprises that can convert information into intelligence will dominate and survive in the new economy the others will have a threat of existence.

2.?????Growing Influence of IT on Business : Business goals should always be the key focus of any organization. Traditionally the directions of how business should be run would always come from revenue generators or business to technology leaders. However, in the fast pacing and evolving data-driven economy, IT (Information Technology) leadership has become a strong influencer and needs to play a significant role in influencing business decisions. To survive in the dynamic digital economy, organizations must not only understand customer needs but also monitor how new technology would change customer requirements proactively. CIOs need to equip themselves with a broad range of skills like data science, machine learning, and artificial intelligence to convert information into intelligence.

3.?????Data Challenges Remain Roadblock for Innovation Adoption for Enterprises : Adopting artificial intelligence or GPT can come only after an organization has good control over governance, management, and technology around its data and information assets. While CIOs may have played a significant role in managing infrastructure, resources, and security of information; that’s not enough in today's AI and GPT world. There has also been an advent of a role of CDO (Chief Data Officer) role recently. However, that role has primarily remained focused on governance and compliance. The average tenure of the CDOs of between 2 to 3 years suggests a lot about the success of this role. It would be interesting to see how the most recent advent of the CDAO (Chief Data & Analytics Officer) role is accepted by the industry. As a result of this confusion, in most organization data management, availability, quality, governance, and many other aspects have remained challenging. CIOs can play an important role in addressing these challenges.

So the key question is what can be done to accelerate this change for enterprises to adopt a data-driven and AI-driven economy?

1.?????Reorganization of Enterprise Leadership Roles & Responsibilities : The board and executive leadership should quickly understand the importance of data, artificial intelligence, and GPT on their business and reorganize the leadership to cater to the fast-changing technology. The six months pause is not happening . Every organization needs to reorganize leadership(CIO, CDO, or CDAO) to ensure that all the aspects of data and AI technology such as architecture, management, governance, etc. are organized in such a way that information can be converted in timely and accurate intelligence in the most efficient, effective and secured manner. This will also include changing roles and responsibilities, training, and all the other aspects of change management.

2.?????Restructure IT Strategy : If legacy IT infrastructure and finding the right resources are becoming a bottleneck to getting timely and accurate intelligence; the strategy needs to change at a fast pace. The strategy should include many considerations such as the "right" resources, consolidating infrastructure, automating architecture, etc. The old way of fixing and enhancing technology is not going to work anymore. Not having the right and timely data , and resources are the top reasons for the failures of IT projects as per the recent surveys done by Gartner and many other top research firms. Adoption of no-code and low-code solutions is not an option but a critical selection criterion. The new technology should be adaptable to working with the appropriate legacy technology stack.

3.?????Enable Technology Leadership to Influence Business : As technology and information aka data become increasingly important, an organization’s success depends on whether the CIO can move from being functional to a strategic business leader. As technology continues to rapidly evolve, the CIO must work closely with executives to identify opportunities for innovation and identify ways to leverage technology to improve business processes, drive revenue growth, and improve operational efficiency. The CIO should be a strategic thinker, collaborating with other executives to align technology initiatives with the company's overarching goals. This requires a deep understanding of the business and its goals, as well as a strong understanding of emerging technologies and their potential applications. The CIO should also play a role in identifying and managing risks associated with technology, including cyber threats and data privacy concerns. Ultimately, the CIO's ability to understand and leverage technology can have a significant impact on a company's competitive position in the market, making this a critical role in shaping business strategy.

HEXANIKA is a leading provider of smart technology solutions that empower CIOs to quickly adopt data-driven, GPT, and artificial intelligence capabilities in the fast-changing world. ?The innovative solutions are designed to streamline data management processes, reduce operational costs, and drive business so that information is converted to intelligence effectively and efficiently. The following are the key aspects of the solution:

1.?????Easy integration with existing stack: HEXANIKA's software solutions are designed to be highly customizable and adaptable. The semantic layer of combined data management, governance, and consumption capabilities enables CIOs to easily integrate into their existing data infrastructure, systems, and workflows as a plug-and-play.

2.?????Automation: The low-code and no-code self-service solutions enable CIOs to repurpose existing engineering resources and empower business users.

3.?????Scalable and flexible: The solution smartly uses resources to scale fast and leverages existing infrastructure.

Author: Yogesh Pandit is CEO and founder of HEXANIKA . HEXANIKA specializes in providing data-driven solutions for financial institutions. With over 20 years of experience in the financial technology industry, Yogesh is a seasoned professional who has a deep understanding of the challenges faced by financial institutions in managing their data and achieving their AI goals. Prior to founding HEXANIKA, Yogesh held senior positions at several leading financial technology companies, including 花旗 , 安永 , and has advised many firms such as 高盛 , 德意志银行 , 摩根士丹利 , etc. With his expertise in data management, regulatory compliance, and risk management, Yogesh is widely recognized as a thought leader in the industry and has been featured in numerous publications and conferences.