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How IT-intensive industry CIOs stand out The most IT-intensive industries Given where IT-intensive industry CIOs sit, they are clearly An analysis of the top 100 companies, in terms of their total empowered to drive the significant changes associated with the IT spending as a proportion of revenue, shows the key sectors digital transformation. So how do they differ from their peers, that are investing most in technology to transform their the “typical CIOs”? businesses. Their spending ratio ranges from 1.02% to 3.99%, representing vast investments in IT, given that their average More often a member of the executive revenues far exceed US$1b. Chart 1 management team Industry of top 100 companies with the highest IT spend One of the most striking differences is that IT-intensive industry as a % of their revenue CIOs are far more likely to hold a place on the executive management team. A little more than half (53%) do, compared with just 17% of typical CIOs. In many respects, this makes intuitive Other sense: with IT having a much greater impact on the bottom line, 7% 22% Technology (including these firms want someone accountable close at hand. It also 16% software, hardware, highlights how much more influence these IT leaders potentially Media and IT services and hold within the business. This is important: for CIOs to truly help entertainment e-commerce) address the opportunities and threats that digital transformation provides to their firms, they need to be a part of their executive 20% management team. Telecommunications However, it’s also apparent that many IT-intensive industry CIOs are 20% not making full use of their powerful position. “For years, CIOs have Pharmaceutical and 15% been fighting for a seat at the table. They’ve understood the biotechnology Banking importance of building relationships, and how to engage the business with a business-centric vocabulary, and so on. So many Source: Vertical and company size survey, IDC, 2013. now have a seat at the boardroom table, but they don’t know what to do with it,” argues KornFerry’s Concannon. Rather than simply holding budget discussions or operational IT reviews, they should be using this as a chance to make the case for a more strategic engagement on IT across the business, ensuring that technology is deeply represented within the corporate strategy. While many CIOs have to try and make this case via a proxy, often the CFO, a seat at the table gives them the chance to sell the rest of the board on a “IT-intensive industry CIOs” refers to the CIOs surveyed broader vision. for this report, from those sectors that have higher than Why do CIOs often not get this right? In part, it has to do with the average ratios of IT spending as a proportion of transition in mindset that comes with moving from a role that is total revenue. more focused on the operational elements of the job, to one that is more strategic in nature. Encouragingly, IT-intensive industry CIOs “Typical CIOs” refers to those CIOs surveyed across all who have reached the boardroom show stronger engagement on a industry sectors for The DNA of the CIO in 2012. wide range of issues. But those who are able to do more to prioritize the strategic elements of their role will do best over time. Born to be digital | 11

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