In 2016, market changes were driven by rapid digitalization. CIOs didn't just respond—they embraced new digital strategies that deliver business-integrated IT innovation at a much faster, more agile pace, helping business partners attract new customers and improve customer service.
CIOs play a significant role in helping organizations become more customer-focused. At Apptio, we've seen customers become better leaders of digital business innovation and deliver new value to the business when they orient themselves to business models, partner with business peers, and focus on external customers. From CIOs working to modernize tightly regulated environments like Newport News Shipbuilding to those racing to adopt new ways to work with customers like TBM Council award winner FedEx, the ability to harness digital technologies is producing powerful returns.
The results are in. As Clint Boulton notes in CIO.com's 8 top digital transformation stories of 2016, "The stakes are high. Leading digital companies generate better gross margins as well as better earnings and net income than organizations in the bottom quarter of digital adopters, according to Harvard Business School (HBS). Leaders post a three-year average gross margin of 55 percent, compared to just 37 percent for the digital laggards."
CIOs are also allocating more of their IT budgets to digitalization. Boulton validates this with research from Gartner analyst Andy Rowsell-Jones: "CIOs are spending 18 percent of their budget in support of digitalization, a figure expected to increase to 28 percent by 2018."
As more organizations embrace digitalization, the need to build an analytic engine that provides a 360-degree view of IT investments—from planning to funding to measuring business value—becomes critical to CIO decision-making. Empowering the team with engagement strategies based on an empirical analysis of IT spend, consumption, and effectiveness is helping to build confidence in new digital investments.
Learn more about how Apptio helps CIOs embrace digitalization by downloading this case study about our partnership with AOL.