For CIOs, it’s a critical time to deliver value on IT investments
The pressure on IT leaders to make the right decisions on technology investments is significant and is only going to intensify in the years to come. Chief information officers are expected to deliver digital dividends, and CEOs and boards--anticipating that investments in digital assets, channels, and digital business capabilities will accelerate growth--want to see these digital-driven improvements reflected in company financials.

A report released last month by research firm Gartner underscored that CIOs and other IT leaders must figure out how to leverage top- and bottom-line growth from their many digital investments.

Gartner surveyed 2,203 CIOs in 81 countries and all major industries and found that CIOs expect IT budgets to increase 5% on average in 2023 — lower than the projected 6.5% global inflation rate.

A "triple squeeze" of economic pressure, scarce and expensive technology talent, and ongoing supply challenges is heightening the need for tech investments to pay off, said Daniel Sanchez-Reina, vice president and analyst at Gartner.

An analysis of the survey data revealed four ways in which CIOs can deliver digital dividends and demonstrate the financial impact of technology investments.

One is to prioritize the right digital initiatives. Survey respondents ranked their executives' objectives for digital technology investment over the last two years, and the top two goals were to improve operational excellence and improve customer or citizen experience.

"Demonstrating the financial impact of technology investments across the organization is critical to enabling strategy," said Kathy Kay, executive vice president and CIO at financial services and insurance firm Principal Financial Group. At Principal, she said the company has prioritized digital investments that will deliver the most value to customers and create growth opportunities and efficiencies.