What Awaits IT Leaders in 2024: IT Priorities for the Next Phase of Transformation
- By Amir Sohrabi, SAS
- January 15, 2024
Immense technological change and the looming threat of a recession are driving businesses to look for new ways to operate more efficiently while also increasing the 'stickiness' of their customers. The consensus among enterprises is that they need to make the most of technology to lower operating costs while maximizing efficiency and pursuing opportunities to grow the customer base.
Indeed, this would explain why, despite continued headwinds carrying over into 2024, IDC expects an increase in AI spending next year across the Asia Pacific. This appetite reflects a sincere desire to push the boundaries of digital transformation, and the following trends will likely make a significant impression as these efforts grow over the next 12 months.
1) Time to get serious about 'shadow AI'
Generative AI has been an extraordinary leap forward for employee productivity, but it is also driving the use of tools that do not have the blessing of IT departments. If this sounds familiar, it’s because where IT leaders previously struggled with “shadow IT”, today, they need to account for “shadow AI”— the use of AI by a company's employees that is unsanctioned by its IT department. Generative AI also requires significant guardrails, so expecting IT leaders to give in to the unfettered adoption of these tools is out of the question.
That still will not stop employees from using tools like ChatGPT and Bard, which have enormous benefits for productivity. IT leaders in the region will need to grapple with this and study mitigation measures that are in line with their organization’s risk tolerance. Ultimately, well-intentioned employees will turn to these tools to be more efficient, and CIOs can ensure this doesn't jeopardize the organization by proactively taking charge of the situation.
2) Levelling up data literacy
For IT leaders to drive enhanced efficiencies and increased productivity, it is imperative that they have a data-first mindset. Simply put, getting the most out of tools like generative AI hinges on having data in order—which entails good data management practices, including data access, hygiene and governance.
Organizations that lack these best practices will find that generative AI isn’t as productive for them because it does not have accurate and well-managed data to act on. Good data management also improves customer experience and facilitates innovation, positioning the business to capitalize on cost-saving opportunities. Expect IT leaders to take the reins to empower organization-wide data literacy.
3) Using FinOps to manage cloud spend better
As businesses migrate more of their digital infrastructure to the cloud, key questions around security, privacy, unauthorized usage, as well as access management and resource provisioning will continue to dominate.
Expect this to have a major impact and drive the growth of Financial Operations (FinOps) as a means for businesses to reap the benefits of managed services from cloud service partners. At its core, FinOps is the practice of managing cloud spend by leveraging the inherent variability of cloud use. This is akin to turning off the lights at home when no one uses them. Failure to take advantage of this feature is akin to treating a public cloud as a very expensive data center.
However, variable usage remains a new concept for many IT departments. Typically, technologies, services and infrastructure are always on in the average corporate data center. However, just because IT departments are used to this model doesn’t mean it should persist. With 2024 likely to be a year of opportunities and challenges in equal measure, expect businesses to take advantage of variable usage to enable significant savings.
4) IT leaders to level up storytelling
More than at any point in time previously, IT and digital leaders today are integral to corporate strategy. They, therefore, need to get comfortable opening up to their C-suite peers and the wider organization about their challenges and wins. The reality is that a strong IT organization is now imperative because new technologies are being deployed on a near-daily basis.
2024 will see IT leaders lean into what they do best—leveraging data and analytics to tell the story of their impact on corporate strategy. This will show them how challenges were addressed through people, processes and/or technology—which will also go a long way to building trusted relationships with colleagues throughout the enterprise.
5) Get serious about getting rid of tech debt
Development teams sometimes take shortcuts in writing code to achieve their goals faster. However, this can result in technical debt when it accumulates, as it can slow future development and cost more to rectify.
Combating tech debt starts with robust continuous lifecycle management programs that categorize technology into understandable groups IT can act upon. However, reducing tech debt through lifecycle management is useless if more debt is added. That is why a committed enterprise architecture program to help map technologies to business processes sets the foundation for technology standardization. Expect IT leaders to enforce adherence to enterprise architecture target states and technology standards.
2024 will be a year of significant challenges—but also opportunities, especially for businesses that are quick to the punch and able to withstand disruption. IT leaders will be critical to this, as they can make a difference by leading the integration of new, emerging technologies and trends with business strategy. This will be crucial for driving businesses to refine operating models that enhance business operations and provide products and services that engender customer loyalty for business advantage in an ever more competitive landscape.
The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CDOTrends. Image credit: iStockphoto/ConceptCafe
Amir Sohrabi, SAS
Amir Sohrabi serves as the regional vice president and head of digital transformation for SAS Emerging EMEA & Asia. He is responsible for engaging with SAS’ key clients across industries to support their digital transformation journey. In addition to his client-facing engagements, Sohrabi is responsible for driving SAS’ performance office initiatives across Emerging EMEA & AP regions.