Future Role of the CIO: Business Technology Leader
As a CIO in the banking industry, I see great potential for the future role of the CIO as a true leader of business growth, and even, at the end of the decade, the path to CEO. And it all comes down to the ever-expanding role of technology in driving the banking business, and where banking as an industry will be in 2015 and beyond.
I will share my view on this path from a banking perspective, but I challenge and encourage CIO’s in other industries to look to the future for revenue growth and business expansion in their own environment and map their course accordingly.
Digital Banking is Already a Revenue Driver
I will take, as an example, a commercial bank here in Israel. At the moment, this bank is making 30% of their income from digital channels. Currently, they have 18 different digital channels, where customers can perform account transactions at anytime and anyplace. And the technology is ever evolving, opening expansive opportunities for banking digitally that will only expand over time. One of my favorite applications already in place lets one customer send money to another via smart phone, and the recipient can go to the ATM with the phone to withdraw funds with no need of a plastic card.
The Future of Digital Banking Means Big Revenue Impact
Now – if we fast forward to 2015 or 2016 – what will happen at banks by this time? I foresee that the income from digital services will grow to 50% or 60% percent of the bank’s revenue, making digital technology a very important force for revenue retention and growth, and competitive advantage. This means that the CIO in 2015 will be bringing more than 50 percent of the money to the organization; this puts him in a very strong leadership position in the organization.
How will this Change the CIO Role?
In 2015, the CIO will begin to notice that he is contributing most of the revenue to the enterprise.
Two phenomenons will happen:
- The CIO will look to make the case to get his or her share in the income- like sales, finance or any of the other C-level executives who now typically share in the revenue upside
- As the CIO moves from growth enabler to growth engine, the role of CEO will look both possible and attractive.
In 2020, we will see CIO’s in financial services breaking the glass ceiling to become CEO – which is a new phenomenon, but a very possible one.
Seize the Opportunity
From my perspective this is a great opportunity – especially in financial services – for CIO’s to be THE engine of business growth. For those earlier in their career interesting in seizing this opportunity which is emerging as ever more possible in the next 5 to 7 years, my advice is to take an assignment in one of the business divisions of the bank and then come back to technology with a broader lens. Once you can think banking and not IT, you will provide invaluable insight to help the bank’s growth.
This is my view on the great potential for the future CIO role, and one which I wanted to share with you. What are your thoughts on this opportunity? How can you map the perspective of “CIO as THE growth engine” into your industry or your enterprise?
