Logicalis report finds growing pressure for technology to demonstrate tangible business impact
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CIOs are actively investing in technology to create new revenue streams within the next 12 months according to Logicalis’ newly released annual CIO Report.
The survey of 1,000 CIOs from across the globe found that CIO role is no longer focused on enablement but on shaping business strategy and driving value, with nearly all (94%) regularly reporting to the board on return on investment.
This expanded mandate has been heightened by the rapid emergence of new technologies. The report found that almost all organisations are exploring how next-generation technologies can specifically support commercial growth. This trend shows no sign of slowing, with Artificial Intelligence (95%), machine learning capabilities (93%), and Internet of Things (89%) initiatives among the most widely adopted emerging technologies.
Realising value from these investments remains a challenge as 85% of CIOs reported a growing pressure for technology to demonstrate tangible business impact yet almost two thirds (64%) acknowledged that their next-generation technology investments have yet to deliver anticipated returns.
Still, most tech leaders (93%) continue to juggle limited time and resources to ensure better business outcomes. As CIOs consider innovations that support future growth, they must continue to navigate business-critical objectives. Despite unprecedented spending on security solutions, 88% experienced cyber security incidents in the last year, with 43% enduring multiple breaches raising questions about the effectiveness of security spending.
One area where they are beginning to see tangible financial results is through the integration of environmental technologies. Nine in 10 (91%) CIOs have realised direct commercial benefits, and over half (53%) report these as significant. With a good track record, it is no surprise that those investing in environmental sustainability initiatives have risen from 92% in 2023 to 95% over the past 12 months.
Bob Bailkoski, global CEO of Logicalis Group, said: “For almost every business, technology has become the primary engine of innovation, growth and resilience. With this dependence comes a new expectation of CIOs – they’re no longer just enablers of business strategy but drivers of commercial success. Whether through maintaining a keener focus on Return on Investment from next-generation technologies, optimising security spending or maximising the financial benefits of sustainability initiatives, technology leaders need to seek out the right investments and partnerships that can help them deliver on their business goals.”
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