2025 State of the CIO Survey Results: An exclusive discussion with IT leaders

2025 State of the CIO Survey Results: An exclusive discussion with IT leaders

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Hi everyone and thanks for joining us for the  2025 State of the CIO survey results. It's   actually the 24th year that we've done the State  of the CIO survey and it's wonderful to have this   opportunity for this exclusive discussion which  is presented by cio.com and the IDC CIO Executive   Council I'm really happy today to be joined by my  colleague Zach Miller who is executive director   of the IDC CIO Executive Council as well as two  CEC member panelists Devon Valencia, who is CIO   at CareSource, and Satya Jayadev, who's VP and  CIO at Skyworks Solutions. So I want to hear a   little bit from each of them to tell us a little  bit about what they do and their background so   why don't we start with you Zach thank you John,  pleasure to be here today as John mentioned I work   with the CIO executive Council have the  opportunity to work with folks like Devon   and Satya and CIOs from across the United States  and Canada and bring them together to be able to   share best practices with one another as well as  work closely with our IDC analysts here in the   US and really enjoy the opportunity I have to  hear about all the Innovation that's occurring   across the companies that we work with yeah it's  a great position enviable position position Sacha   tell us about yourself this is the Jeopardy part  we say tell us about yourself nice to meet you   all I'm JV I'm the CIO for for Skyworks Solutions  Skyworks is a hyperformance analog semiconductor   organization whenever you you hear about Wireless  connectivity or 5G we we probably have a product   in there so we we operate in in many different  Industries our products are powering the the you   know Wireless Revolution as we call it it is it is  in the Aerospace in in the hander industry in the   infrastructure all the way to the variables Market  wherever you see 5G or Wireless connectivity we   have a product in there very good thanks Sacha and  Devon first congratulations Devon and Dayton Ohio   Ohio State University national champions Buckeyes  in the first 12 game playoffs that's quite quite   a thing so Devon tell us about your role thanks  Kristen thanks for having me similar to Satya I'm   the Chief Information officer at Care Source  so car source is a$1 13 billion Managed Care   Organization so what does that mean that means we  do health insurance and we are located in Dayton   Ohio we are fast growing I joined carers about  five years ago going on six we were in four states   when I joined we're now in 14 and so fast growing  and we serve predominantly government business   meaning healthccare coverage that comes from State  agencies and CMS so Medicaid Medicare Marketplace   plans and then veterans families and such so I'm  excited to be here and and appreciate the CC and   all the research you all do to help us do our jobs  great thanks thank you Devon so before we go into   the questions for the panelists I'm going to be  walking you through a few slides from the survey   really this is just to get you acquainted with it  if you've not had any experience with the state   of the CIO survey it's a big survey it's over a  thousand respondents heads of it most of them have   the CIO title but there are a variety of other  titles in there as well the whole goal behind this   research is to focus on how the role is changing  what are the priorities for cios today what are   some of the challenges they're facing and some of  the technology projects and initiatives that are   underway and we'll be talking about those things  as we go throughout our presentation today one   of the nice things is we're always asking in our  surveys at Foundry about at cio.com about budgets  

so over the next 12 months what's your expectation  and the good news in this research as well as most   of the research that we're seeing recently is  budgets are going to be going up in the next 12   months so that we can see that almost 2third of  the respondents said they expect their it budget   to increase in the next 12 12 months and we asked  folks why what's driving those budget increases   and I won't go through all of that I know that CC  members will be getting the full research results   but what I wanted to point out here is the nber  one answer is additional investments in Ai and   machine learning and other and AI enriched  products and services so both internal AI   initiatives as well as technology that's being  acquired that's AI enriched so that really is   the first area where I wanted to spend a little  bit of time focusing on with u with the three   of you I'd love to hear and Devon let's start  with you on this what is your current approach   to AI I mean we're hearing so much about it your  organization has had a fair amount of experience   with that I know but what's the current approach  what are you hoping to achieve and what kind of   lessons have you learned along the way yeah  thanks for asking so AI is obviously top of   mind for everybody for everyone's SE Suite  for every organization certainly our board   of directors I think for for us in technology AI  has been around for a very long time we've been   I mean my organization lots of our organizations  been working with some version of AI whether it's   Bots or modeling or all sorts of things for years  and years I think what we're seeing is two things   one it's it's conser oriented now so that that  average person can touch AI with generative Ai   and chat GPT as an example and so you're seeing  it more in the news but I actually think we're   at a Pivot Point here and we're having a lot of  conversations with our board of directors and   our suite that we're kind of at a pivot point in  like the mid90s around e-commerce and the internet   and things like that and there are parts of our  Industries ways will work weighs the the universe   will work that we probably can't even imagine  right now so we our approach to AI is it's here   to stay it's not going away it's like saying you  know hey is can we can you put the calculator back   and change math to an advate it's just never  going to go way yeah so we have especially in   an industry like healthcare we have to embrace  it and know how to use it or also competitors   will beat us to it I I do think there's a lot of  caution though about how it's used and I think   so there's just a lot of learning so we're  aggressively using it we use it extensively   already particularly in our data and analytics and  things like that and also member facing activities   but we are being thoughtful particularly in  when clinical outcomes and and patients and   providers and right such how we're very cautious  about we just don't let that go by itself right   so there's a lot of han in the loop is what we  really focus on makes a lot of sense and Devon   if you were to say in one sentence what's the  most important thing you've learned about AI so far the most important it's not going away it's  not it's not it's not a temporary thing it is a   it will be a pervasive part of how we work and  so it's going to be embedded in everything we   do yeah generational shift in the technology  Sacha what's what what are your plans what   are your learnings what's your take on AI at this  point yeah so I think we we've we've gone through   that hype cycle and now we are into a good space  where we're trying to understand our our use cases   better in the Advent of AI every every nail looked  like an AI nail because we had an AI Hammer but   now we are starting to kind of sift all of that  and and and we're trying to understand what's   what's a good use case for how we want to manage  this and I think when we talk about AI we have to   start talking about data and when you talk about  data you talk about the systems of Records systems   of transactions what generates that data for you  to start thinking about AI in in in totality in   terms of what you're trying to do so I think from  that perspective we are now peeling the onion and   we are looking at the different layers of what  what constitutes that so which is in line with   what you had actually mentioned about when you  spoke about it budgets why are they increasing   right so the reason why we're increasing is  because AI being the catalyst is driving that   single source of Truth when it comes to data and  that single source of Truth is also trying to   modernize our systems bring in more optimization  bring in those systems of records of transactions   that are generating that so it is it is operations  modernizations and and the transformation that is   is all driving the cost up to to make sure that we  deliver AI at at where the the organization feels   it and and sees it from from that perspective so I  agree and I think Deon H some great points as well   in terms of AI is not going away it's going to  be here it's there's a lot of Investments coming   through and we're going to start seeing that in  the next few years that makes sense I also want   to ask you know if if 2024 was the year of AI hype  and Sky hype promises and lots of promotions and   projections around on that what's your expectation  of how 2025 will be remembered when it comes to   Ai and actually want to start with you Zach we  were chatting about this earlier what when you   when you think and talk across the C what do you  think 2025 will be remembered for yeah what we   hear from Members is that 2025 is the year of AI  investment and in some cases as Saia referenced   it's the it's the investment in preparing for AI  and that investment comes in large part around   data strategy and data governance and cleaning up  of tech debt so really it is about AI investment   and the other thing we hear from the members  is that as they look at 2025 where there was   a great deal of experimentation in 2024 they're  now looking for use cases that have the greatest   chance of success and business impact in their  organization that makes sense and Sacha what would   you predict 2025 will be known for AI the year  of I think we initially when when AI came to the   four right we had a venture capitalist mindset  to say let's let's put on 8 to nine use cases   let's see where we are let's do some Discovery  so we had some Investments coming through so a   lot of the learning is now starting to crystallize  and now from from VC's mindset we're going to go   into an Roi mindset give me those use cases  that is now coming to to to like fruition   how is a company benefiting from that the board is  looking at that the senior executives are looking   at that the the feeling for what AI can do whether  it's a hype cycle or whether it is true and all of   that is now pretty much crystallized and we know  what we can do with it we know where we are with   that and I think this is going to be the year  when you're going to see some organizations   drive that Roi towards the finish line and that's  what is going to happen I I believe in 2025 yeah   that makes a lot of sense I hear about that Roi  issue from a lot of cios it's been difficult in   many cases to U model that in advance of a pilot  and it's difficult afterwards to determine success   so that's it's a great topic to bring up Devon  what will it be known 2025 the year of yeah I   think it's the I think you're going to see the  some companies because they've made the right   plays both in their data platforms and in their  engineering talent and their data science Talent   they're going to pull away from the competition  at a pace I think that's a little bit going to   be unexpected I I worry a little bit that some  companies that haven't aren't totally prepared   they're going to be a little bit lagging so I it's  kind of the separation of the wheat from the shaft   I think you're going to see a huge acceleration in  companies and spaces and actually I think you're   going to start to see things like what what's the  in in 90 what mid 90s there's like a thousand new   companies are on the S&P that didn't even exist in  the mid 90s so I think there's whole new companies   operating modeles the emergence of ways of working  that aren't even I couldn't even explain what they   are now but I do think you can see you're going  to see a a differentiation I think some companies   are really going to take off very quickly because  they have the right building blocks in place and I   think others are just going to try to be catching  up a little bit you know it's interesting we have   a a survey called AI priorities it looks in  exclusively at Ai and one of the questions   is do you think your organization is moving too  quickly or too slowly when it comes to AI it's   really split I mean it's almost a almost an even  split but one person remarked that I think for   the people who think they're moving too quickly  they're one press release from a competitor away   from realizing they're not moving anywhere  quick anywhere fast enough when it comes to   AI so I wanted to note this a this slide from the  state of the CIO survey where it says 75% of cios   are working more closely with line of business  on AI applications and 71% agree that it's the   IT department that's driving AI adoption efforts  and aligning with business units on that so we're   going to talk more about the role but I wanted  specifically to ask and I'll start with you Devon   how is this focus and this urgency around AI how  is that alone changing the CIO role today yeah I   think you're moving to much more of a strategist  role I think there's because because again they're   not asking hey I have this problem and I've seen  it solved and help me solve it and by commercial   software the questions are I think we can do  this I don't know how and so we're all like it's   problem solving in a very different way it's  not like known Solutions and so I think it's   it's changing maybe the conversation from a  transactional I have this problem I know need   to buy software and so help me pick it to I think  I there's this emerging capability I want to build   so it's a different conversation which I think is  fun for us and also fun for our business partners   and I think it's changing the dialogue between  our organizations makes sense Sachi is that your   is that your sense as well yeah I I agree I think  U you know Deon hiil on the head we are for the   for the first time I feel like technology has no  limitations in terms of what it can do and I think   we're also starting to see the role of the CIO  change pretty you know significantly right we've   we've always had a good hold on technology that is  running the the business and moving the business   forward we also have some great folks within it  who can put on their business hat and be very   Savvy about it but now we are this is a time where  we we can become very relevant or become very   irrelevant in terms of how we see it we start only  talking about data governance right it becomes   very irrelevant you got start talking about  governance and the value like know proposition   as well we've got to drive both these engines you  know fast and I think that's where the you know   secret source is how do you how do you understand  this how do you demystify this to the board and   how do you how do you demystify solutions to the  to the you know senior to the senior members of   the you know executive team all of that comes  all of that becomes very very important I also   feel that now it also has a great path towards  adding to the Topline growth of the company which   has always been a pipe dream for for many right  and I think even in a manufacturing organization   you can see it now adding value through AI they  are adding to the top L growth and to the bottom   line growth of the company Engineering Systems are  now being significantly changed because of what AI   can do that helps with the productivity of your  engineers and that also helps with your products   getting out there much much faster and you're  now seeing the same thing from manufacturing   efficiencies and all of that so a very interesting  time to be as ACI I'm sure Devon will agree with   me on that and I think this is only going to  get better as we start seeing some of these   mainstream use cases you know come to life and  I think that's where you are going to see that   the it organization is a significant value Adder  within the business yeah so let's stay on this go   ahead Deon yeah I you know s you Ed the word said  demystify it I think that's actually because AI   is putting technology so close to like every han  the things you can do with chat DBT that you used   to have to ask somebody who's very techsavvy  how to do they used to have to code something   for you because it's like a low code it it is in a  really cool way changing like my peers perspective   it's so embedded in they're doing they're like  automatically I have a technology solution I   need to solve for where it used to be like we  were behind the wall you techn used to be like   oh that thing in the back office and now they can  see it and touch it and so they're more apt to say   hey like let me talk to Devon about how we solve  this versus it being a purely business problem so   I think it's changing their imagination and how  they think about how we work together good and I   want to explore that we're really going to focus  on the role here because as I mentioned really at   the heart of the state of the CIO survey  is the role of the CIO which has changed   dramatically over the 24 years of this survey  so for example we see here 82% of cios say that   the role is becoming primarily digital  and Innovation focused 82% say they're   leading digital transformation initiatives within  their organization and 81% agree that the CIO is   becoming a change maker and interestingly we see  we always ask I think it's 250 line of business   Executives also fill out this survey because we  want their perspective on how they're working   with their own cios and the effectiveness of the  CIO within their organization line of business   Executives agree with these statements they're  really looking at the CIO to be a change maker   so Devon let me start with you talk in talk  overall about how your role has changed and   how you expect it to change I want to talk more  about the interactions with the board and line   of business and CEO in a second but really what  you're telling your team about their role what   you see your role within the organization how has  it changed and how do you expect it to change yeah   I think you know it's I used to people say Hey  you know think about how you touch the member to   my team they can so clearly see how they touch our  members and our and everybody in the organization   it's just a it's a much clearer line of sight  because the technology is literally everywhere   it's not just in the back office like in the data  center anymore it's literally everywhere so think   it it it is exciting for the people inside my team  and I think the other like they're I I'm in so   we're obviously fast growing both organically and  inorganically and I am in every deal conversation   because technology is native to like everything  we're doing so like it's a competitive Advantage   for everything we're doing where it used to  be sort of like hey well let's talk about the   cost structure of it and and so I think and every  organization's different right so my CEO and my   very aggressive about technology so it makes my  job fun and not not every company's like that but   I do think it's just changing where it used to  be sort of a functional role it's certainly a a   strategist you know new Revenue opportunities how  are we doing growth and things like that it's a   it's a big part of just the broader strategy it's  a sort of it's a line that runs through all things   you know I'm glad you use that word strategist  one of the things that we ask the line of business   Executives is how would you characterize your CIO  and one of them and really what we consider to   be the ideal role is business strategist and this  year that nber increased significantly I mean it's   still it's still under 60% of the line of business  folks categorize their CEO CIO that way but we're   seeing good growth in there so I'm really glad  you brought up that strategist term Sacha how   has your role changed and how do you envision it  changing going forward so the the metamorphosis   of the role is pretty fascinating about in in my  own experience right about eight years ago it was   a support function right and and from a from from  a support function Co became a catalyst where it   became an enablement engine where we were trying  to help the business run from wherever however   whatever so I think that was where U it gained a  lot of credibility right a lot of leaders who who   thought it was a cost center started to look at it  to say wow these guys can can you know help us toh   to know run the business maybe we we get them more  involved in these conversations and then postco   world we became U more of the drivers because we  were now at the ideating table and then we were   giving our ideas our views on on how we need to  shift and focus we were real solution Shapers at   that you know from that perspective again a lot  of credibility earned through the years and then   now in the Advent of AI we seen as a Visionary  organization how do you guys come and and enable   us to kind of kind of like you know get there so  you know you you have to kind of show them the   Utopia of what AI can do when you when you talk  about when you talk to a COO or you know how do   you envision your day what are you doing when you  come in when you get into your when you look at   your like a system what are those things that  are on your mind do you want to know where are   we on these design ons right where are we on on  these orders and how are we going to get are we   attaining our like schedule are we doing all of  that through just natural language you don't need   to log into into 15 different systems to get you  the answer that you that you're looking at so so   that's the pivot and and that's why I use the  term demystifying officers is because we need   to kind of demystify these systems take away all  those three-letter acronyms of of you know systems   that are that are that are that are changing and  you know shifting our world to saying what do you   want ask in in natural language well we we will  get there at some point but we need to know where   we're getting towards right and I think that's  where you work backwards to say how do I get   them if I need to know a lot information how do I  get that lot information to to the to the exact in   in a very simple format right and that's where the  the you know Secret Sauce lies and I I can I can't   imagine how this this role of of the CIO is going  to change over a period of time I like the term   like you know strategist right and I think that's  and Deon is right and I think we are seen more as   people who understand the business and technology  and how do we bring that to the business and how   do we build the value yeah over over a period of  time yeah S I have to say that we did cio.com we   did several surveys during the pandemic and post  pandemic and you're right remarkable change in the   perception of the c role as someone who enabled  the company to either Thrive or survive during   that typic difficult period And I think AI is  having that same kind of effect of driving those   conversations enabling those conversations but  let's talk talk about those conversations talk   about how your relationships with the CE CEO  the board and business peers have change and   I know I'm G to ask you about this Zach as you  talk again with with all of the members of the C   how do you see those relationships changing yeah  well first I'll just step back and and I think   you feel it here and we feel it within the council  the energy level among the cios we work with is is   very high they they their profile within their  organization is on the rise and they know they   have the opportunity to impact the business  in in meaningful ways and that lends itself   to the the time that they're spending with the  board and within the SE Suite really helping to   develop strategy that's driving the the companies  forward so we we see and feel it every day as we   visit with cios they're being a lot's being  asked of them but it's it's an opportunity to   really bring their expert forward and and have an  impact on the business yeah and then Sacha what's   your take on that how how are these discussions  and relationships changing yeah I think as you   know Zach mentioned it's the the energy level is  high for different members of our own executive   team too as they as they look at this and they're  trying to understand what can we do how can we use   it in my own line of business like we are trying  to think about very innovative ways of doing it   age of those low hanging fruits that came with  AI are all taken now everybody wanted to take   advantage of how do we generate code and how do  we use co-pilot or something to kind of write   our emails how do we all of that is gone right  we have we've all taken advantage of all that   but now it comes down to the real me of it to  say how do we make our process much more faster   much more optimal can we look at it in in a in a  variety of of of different functions right and I   think just being involved in those discussions  just being asked to be at the ideating table   whether it is at the highest level or whether it  is within the the individual functions is where   you know it it really warms our heart to see how  much the fabric of it is kind of intertwined with   with many different functions of the business  and I think but we've got to be very careful we   can't boil the ocean right we need to understand  the prioritization of it the democratization of   data the democratization of analytics and now the  democratization of AI is coming to the for Devon   mentioned about about getting that those the the  rise of data scientists and the citizen you know   development that's happening and I think it has to  be very careful about building governance models   that is that is going to help make these processes  faster so I think there's there there's a lot of   pull in different areas it's always great to be  wanted but I think you have to deliver in order   for that to to to be a very fruitful relation to  continue and build on and Devon I want to get your   take but something that you said struck me you  talked about there's an educational component   of this like particularly around Ai and I've  heard this from other cios where they have you   know line of business coming saying do we have an  AI or can you get us an AI and you know there's a   lot of Education that they're having to do around  not only AI but around risk and security and other   things so how are your conversations with CEO  board line of business peers how are they changing   well I think one of the things I embraced a  few years ago even kind of pre-co was when I   introduced myself I say first of hey I I've been  in managed care for 23 years I happen to have   been playing an IT role those whole 23 years so I  think you have to really know the business you're   in and then luckily I happen to really and deeply  understand technology like just a bonus I think   I think you have to come at it from that lens  because if you start with technology first it's   like a mystifying language like so s was saying  like how do you demystify all this it needs to   be in natural business terms we talk a lot about  you know these acronyms and technology and even   the sort of like all the different types of AI  you know generative machine learning all these   different things even GOI all these things it  can be very confusing and you have to simplify   it because it it's very accessible U and so I  try to just I try to just say hey first let's   talk about the business with the business problem  and then know by the way I'll explain this in the   back if you want I'll draw a picture for you if  you want but let's talk about the business problem   and so I think you have to keep it there you  can get like with any technology you can get   really in the weeds and when you're talking to a  CEO and a board they they trust that Sati and I   know how to do this that's not their job but what  can you do and the possibility I think you got to   keep it there so I I you got to know the business  really well so you have to have credibility in the   business you're in yeah and then also deeply  know technology in the same way like my CFO   deeply knows the business we're in and he's really  good at actuary and financials right that's schal   career so yeah one of the themes that's come up  in other discussions is this notion of proactivity   so instead of waiting to be asked what can you do  it's also bringing ideas to the table and bringing   Solutions in advance which really requires as you  say knowing the business and knowing the market   and and The Wider economy so for the first time  this year in our state of the CIO survey we asked   some questions about stress and burnout and job  satisfaction so I just want run quickly through   some of the findings of that when we asked about  CIO burnout like how burned out do you feel in   your job we had a significant nber over almost a  third of the respondents who are in the very high   ranges of that on a scale of 10 they were eight  nines or tens so then when we asked about their   stress level in that same category of eight nine  and 10 on that scale with 10 being I am extremely   stressed out which I feel in a lot of my life but  separ we had even more people we had close to 40%   of the respondents were in those highest levels  of that and what was more concerning when we asked   line of business Executives what's the impact of  that we had 67% of them 23ds of them saying that   that stress has either somewhat hindered progress  meaning missed deadlines or project failures or   significantly hindered the success of projects or  meeting deadline so I'm going to start I'm going   to start with you Devon do these nbers surprise  you these stress and burnout nbers a little bit   maybe not so much and I think there's also the  correl there's another question in there about   like and started skip ahead but like do you love  your job and everyone said yes was even more yeah   I was going to get to that too but you can tackle  that right away it's sort of and I'll I'll show   our audience you can see again on that 8 n and  10 scale we really had I mean close to 50% of   respondents said I love my job so how do these how  do these things sync up I I don't I don't know the   I mean know for for me I think one of the things  maybe it's this pivot from like functional expert   to strategist I think it is really complicated  everything from like end user compute the software   on the the network the everything is running in  technology so the expansiveness of the job and the   disciplines under it is just ever expanding and  then within that everything including the network   the data center everything is evolving at like a  quarterly Pace like it used to be hey I'd upgrade   something in a you know 18 24 month cycle I mean  Microsoft teams is patching and doing feature   points at like every other week I mean the pace  of the acceleration of it so it's like the moment   you believe you're expert in it you're actually  already Antiquated you have to learn something   new and so then I think then maybe many of us as  having had been sort of in that control functional   role pivoting to this role where like you your  your honest answer has to be I actually have   no idea how that's going to work but I'm going  to figure it out maybe that's an uncomfortable   transition I and I think it requires a lot of  resilience it requires a lot of risk-taking   and sort of like how do you how do you create an  environment around yourself with your team with   your peers of curiosity and questioning instead  of perfection because there's no version of that   anymore I mean the the pace of the technology in  every component technology is at lightning fast   speed so I'm wondering if it's just that pivot of  like the expectation of being expert systems all   have to be up and available a 100% of the time  like there's no more 99 it's it's five NES for   everybody for all things and then the pacing of  it the modernization the security and everything   on top of it so I'm just wondering if it's that  it's that tension point between the two of that   expert and then becoming strategist means you're  not expert there's no such thing as expert because   you're you're going into new worlds that don't  even exist yeah and Sacha what's your take on this   stress level this burnout level does this surprise  you especially concerning I think is the line of   business responses that it's having an effect on  the performance no I think I think Devon had all   the key notes there it is a very interesting  time but it's also a time where we've got to   pace ourselves and I think we need to understand  I think AI is is is a part of that equation AI   might be the Catalyst in that but but then you  got to think think about it holistically Deon   mentioned about looking at our at our at our data  centers looking at our Cloud portfolio looking at   our our Network because if you going it's like  you have a Ferrari you need to make sure there   are I mean you need to put the right roads to to  kind of get us there you need to put the right   guard rail so it if this doesn't crash you need  to know how to drive this car you need to make   sure that the car is taken care of there's so many  other things that that that we need to understand   because again when we talk about AI we talk about  data we could we talk about the systems and we   we also have to operate the you know three-speed  architecture right that is it operations the you   know day-to-day operations and then there is the  modernization of our applications of our systems   which is a continuous process know just a few  years ago we used to talk about technical debt now   nobody talks about technical debt everybody talks  about AI we still have to address the technical   debt because the age of AI yeah in the age of  AI garbage in is garbage out squared right so we   need to make sure that we we we have a good path  to making sure that our systems are good clean   the data is sanitized that is a single source of  Truth and then when we go to the data layer how do   you harness this data the knowledge graph around  around all of that and then you you start talking   about data now there is agentic AI models coming  out there and so we need to you know think about   the the the you know interoperability of these you  know agentic models and then you have to you have   to think about the business layer to say what  what works for us so we have to pace ourselves   right I think there are I heard that there are  what 30,000 startups in AI we we've got to start   thinking about not making everything ourselves  have to start looking at what's available out out   there we don't have to reinvent the engine we can  be the ones that are that are that are using those   to to to where it should be so I think it's about  pacing ourselves and I and there is definitely a   a feeling of burnout and I think no matter what  you do the Finish Line seems to be going forward   if few more step so I think that's where it is  something that we'll have to understand we'll   have to learn and maybe you know Deon will agree  all us all of us will have to start becoming more   healthier get our our our yearly like physical  checkups and make sure that we are there for the   for the Long Haul well I have to say you two seem  very happy in your job so I'm glad but it just it   really strikes me and again de I just touched  back in terms of stressed out burned out love   my job yeah yeah well I don't you know I don't  I don't I'm not an expert on my psychology I do   think it it to run an organization and to be part  of a sea Suite is it's stressful those jobs are   I me they're burner right they're burner job so  self-care giving yourself some Grace taking your   health I think the other thing and expert in this  but I was thinking a lot about these this coming   into this interview there's some military studies  that said stress really so they they equate stress   to lonely yeah and so like I you know so  how do we create communities in our teams   at a sea Suite level how do you create a community  because when you're stressed out you just feel   like you're isolated right that's what that feels  like you're alone you don't know how to solve the   problem so I I deeply believe in sort of community  and culture and both at at a CIO peer level but   within the companies we're in and yeah I don't  know just be nice just be nice to each other too   yeah that's a great jping off point I wanted to I  wanted to talk to you about that within the survey   we asked you have lots of goals there's lots of  things as IO you want to achieve and you want your   team to achieve but we ask what's holding you back  from being able to achieve those goals variety of   things but the nber one answer is staff and skill  shortages and we have seen this in a variety of   surveys whether it comes to AI security Cloud the  changing nature of the staff the skills we don't   have in order to move these kinds of initiatives  forward the challenge of keeping good people so   let's talk about these issues and Devon I'll  start with you because you brought this up how   how are you managing the challenge of finding  training keeping people not just the roles that   you already have but all the roles you're going  to need for these new initiatives like AI like   Edge iot pick your you know pick your your cool  new thing going forward it's probably the the   people side and the culture and the talent is  probably the thing I spend my most time on yeah   I mean you know like S I mean I'm competing you  know I'm competing for talent at a national level   and a global level even and I mean I'm competing  against hundred billion dollar companies right for   best talent so you have to be a place where people  are dying to work for you and feel like they have   opportunity and career growth and and and that  it's fun right so there's it's a big deal and I   think going going about correlation to the stress  part when I'm super stressed out I'm not of fun to   be around I don't really create a good energy in  the organization so I think that like self-re as   a leader as the top leader in the it organization  as we compete for talent that Ripple of your Vibe   or feeling of stress or happiness or whatever it  is or optimism flows through the organization so   I think it's really spending time at an individual  level like what what are your people feeling when   they're around you and it it it changes the shape  of the team and the dynamic and whether people are   will to take risks or not right if they feel like  they're going to be penalized or whatever it's   it's a tough place to have Innovation and Devon  I want I want to press you on this so when you   talk about culture what is it you do specifically  that makes this culture that you you value so much   oh it's a lot of things so I talk to my people  I just was just I do round taes all the time I   talk to people right I I try to just like model  like what it is to be nice and kind and like be   good to people we spend a lot of time on what  do we expect people to do and be and how do we   expect them to be Innovative and we're kind of  relentless on our you we we use the concept it's   a little controversial of talent density what do  we really think about who's our very best talent   it's just it's kind of a it's an constant  conversation of communication and teaching   and it's like in everything we do and I expect my  staff and we don't and we kind of have a you know   a no blip roll but we don't let bad people in and  you just you can't make that and you got to have   to hold a line oh now I know what the blip is it  just figured it took me a little bit to figure it   out but now I know what it is is yeah Sacha how  are you managing this this again this comes up   in every survey we do I think it's I mean from a  from a culture perspective it's all about trying   to instill what's in it for my team members right  what's in it for them before what's in it for the   organization the you know bigger picture again  working on some very cool Technologies working   on technologies that is that is having a direct  impact on our business is a huge thing right   I think it's it's the folks that are that are  doing this are actually going to see the impact   of what they did and I think seeing that is  hugely inspirational yeah and I think that's   where the the role lies in in trying to tell them  to say you got a frany drive this towards towards   where it should be and and you are you will see  the impact of what you're trying to do as well so   sometimes I feel that the eye in the CIO stands  for inspiration to make sure that we are the   ones that are that are trying to kind of help the  organization see what it is is and I think it's   also about know coming back to the other question  which is what are we trying to do to make sure   that we have the talent that's that's definitely  a huge challenge right some of the reasons why   there is stress and burnout is also because of the  talent that we have been thinking about how do we   bring the right Talent how do we because I don't  want it to become the choke point for the business   we don't want to be strong arming the business  strategy we want to be doing everything that we   can to kind of keep this thing going which means  there's going to be a lot of resources that is   going to be required to kind of drive this forward  and I think how do we get those those resources   and that's where you start looking at the entire  ecosystem where can you co-develop with your with   your vendor Partners can you co-develop with your  customers can you co-develop obviously within the   organization can we create an entrepreneurial like  Ventures can we what can we do to kind of spur all   of that so that we can keep this thing this you  know Juggernaut rolling rather than stalling is   where we we we spend a lot of time and how do  you resk how do you retrain and how do you keep   the employees that You' reskilled and retrain  too so it's a it's it's a concoction of many   different things that has to come together and the  successful cios do that one last thing I'll talk   about is that it is also looking at the U at the  Paradigm change in which we are operating right   I think we have to start looking at certain areas  of of it which is adding value which is making us   more competitive and looking at certain areas  of it which is basically commodity everybody   does that right everybody manages backups but we  can be thinking about that as something we need   to we need to start thinking about giving it to  somebody who can do it better and start focusing   on on areas which is going to add more competitive  or more make us more competitive in the you know   business place and I think that's where we have  to start thinking about Talent holistically right   that makes sense I I do think you have a line of  t-shirts and coffee mugs with Chief inspiration   officer I love that on them I think you can own  you might want to trademark that before we get   off Zach I'd love to hear about what you hear from  the CEC about this issue of Staffing and then I   get your take but I also want to hear from Devon  and Sai about it how do you think AI is going to   change that so AI has uses within it as well so  first what are you hearing from CC members about   yeah well CBC members definitely concur that  Staffing is at or near the top for the list   in terms of the challenge that they're faced with  we spend a lot of time as a council trying to to   brainstorm and share best practices around how to  overcome some of those challenges on the AI side   of the equation interestingly as we look at the  AI use cases that have been most successful in the   past year within the council there's been nerous  use cases shared where our members have leaned   into AI to automate tasks and really have done so  not only within it but across lines of business to   help address the the shortage of of talent that's  out there by being able to free up time of their   current staff who maybe is in a great position  to focus on Innovation and allow them to you know   focus on those higher value activities versus the  tasks yeah it makes sense and Sacha I we're we're   coming up on our time pretty quickly we have  about 10 minutes left I do want to get a quick   take from you and from Devon on how do you see  AI changing the game and how your team works we   talk about it a lot about the rest of the business  but how's it changing it yeah I think we will get   more and more into into an AI driven process or  into an AI driven process I think we we've got to   start U we got to stop thinking about the silos  within the within the it organization and start   looking at at AI as as something that's going  to unify things even within the even like know   running the it organization is going to involve  a lot of AI to kind of do this especially in the   you know service management space I think we  are starting to understand acknowledge that   generating code is something that we we've kind  of embraced well that was a good test to see if   if AI are also people who can accept changes and  embrace change I think this is something we've   got to start thinking a whole lot more how do we  how do we simplify systems right those are very   those are also very important for for my team  members to understand this if we are going to   be driving this within the organization we better  start living that day in and day out and that's   that's going to be how I see this moving forward  makes sense Devon any thoughts on this yeah I   mean I I imagine a new world where everybody in  every organization is a technologist meaning like   there's no I just spend time with a Founder who's  building like he you can build apps and websites   and apis with drag and drop you should be able to  do that I mean I need to give my business partners   a platform that's secure and stable and there's  a promotion path for testing and things like that   but why don't they manage their own business rules  why aren't I mean I don't ever want to write a   report again I those things are run a job those  like so I think one of the beauties of AI is it   it puts the tech it puts technology in the hands  of everyone you don't have to be a deep technology   expert and then what do technology people their  imagination run wild because they aren't consed   with things like back-end jobs and backups and  things like that they can do really creative stuff   so I just I just think it's makes technology more  pervasive and makes everyone in Tech everybody   should be in it yeah Empower everyone so we again  we don't have much time and I have two big topics   that I want to ask you both about sort of unfair  to tackle these big topics in a short period of   time but when we ask cios what I mentioned earlier  the slide where we ask them what their focusing   on today one of the big areas is this issue of  modernizing infrastructure and applications and   to that I would add modernizing the way we develop  applications and modernizing security so how are   you wrestling with that you talked about technical  debt SAA and I'll start with you this is a huge   thing and it's behind the scenes and it's tough  to get funding for and it's tough to get people   excited about how are you navigating modernization  and getting getting past that technical debt I   think again it it comes down to u to kind of  explaining the The Whole Enchilada in terms of   saying AI Data Systems processes so we have to get  them the whole picture there and and kind of walk   them through the whole process too and I I'll  tell you one area where technology is breaking   silos within the business right because when we  look at the single source of Truth for example   when you talk about cost models you're going  to say okay where is the data for a cost model   coming from you ask a business and each one has a  different C different area from where they pulling   their their cost models and that's where you're  saying well I need to start thinking about my   data Lake and for my data Lake I need to populate  that with the single source of Truth so let's get   together let's have the discussion let's think  about the process let's harmonize that and look   at that single source of Truth so that's where you  see that discussion coming towards that and then   when you identify that there are gaps which need  which is a cause of a technical death you start   fixing those and then when you fix those that has  a direct impact on on the results that that you   will see see on your you know AI processes or AI  systems so I think you you've got to kind of you   know like you know walk them through the the  the entire journey to to make sure that that   is there's a lot of importance in investing in  the right systems and building or harmonizing the   processes as you go through the process which will  reflect in your data and I I will mention this   again garbage in is garbage out squared so keep  that in mind when you start thinking about Ai and   data yeah I think there's another coffee mug and  t-shirt in that garbage in garbage out Square have   so many of these I have to yeah you've got got  something going on here Devon how are you tackling   this issue of modernization in terms of what's  working for you what advice do you have for others   you know we've instituted for a very long time and  even in my prior roles an very structured n minus   one and I all the way up to the board of directors  and when I said everything's n minus one or as   much as it can be right without dting the business  I think it gets it's really hard it's like having   a car and you choose not to change the tires and  you keep driving it's some point it's going to   break and that catch up when that tire blows and  then you have to replace not just the tire but the   rim and then the whole and the whole chassis the  expense of that so storytelling to your board and   your CFO to make sure that that funding is always  available and it's not a discretionary topic   because once you get behind the curve and I think  this is even true especially with on the you know   the emergence of AI those companies that can stay  modern and stable if you're if you're replacing   like your integration framework or even a main  frame Mainframe AI doesn't run on a main frame it   doesn't run like you can't so like you're you're  you're starting to make these like very difficult   choices but if you if you get behind It's tricky  to catch up so I just think every CIO has got to   convince your board CFO CEO you have to have an N  minus one kind of a strategy where it's just part   of your dayto day it's like taking out the trash  yeah I I talked to one CIO who said just tell them   that it's that it's out of security and it has  to be fixed because it's could do that a security   problem and again I apologize because this is  a big topic but I think and it's not mentioned   specifically in the survey but I think it's so  important right now in a meeting with another   group of CI one of them said one of the challenges  that we have is the world that we're in right now   is the the world order that we all grew up in is  dissolving we have wars in the Middle East Wars   in Europe Global tensions we've got just so much  change and things that we took for granted three   five seven years ago are different these days  even a new Administration here there'll be changes   associated with that how are you as cios helping  your organizations navigate this world of Rapid   change rapid uncertainty where it's different  than it was just a few short years ago Devon   let me start with you and and we'll wrap up with  sa on this yeah I think it's hard like you got to   pay attention to what's actually happening there's  a lot going on in the world and and then you have   to I for me I try to step back and say well where  are we globally I mean because these these amazing   things are still happening so every han protein  because of generative AI is now mapped and and   the ability to solve diseases literally give  immunization it's at a pace and like the our   imagination the things we can do with medicine  alone just because of AI are astounding and will   change the course of history and and Hanity so  yes I mean hans are still hans we all are do   some silly stuff and I think we'll continue  to do that stuff I do think the possibility   of hanity is still on a positive trend and and I  think it's Our obligation particularly as Leaders   of technology to do good with what we have and the  accountability we have and the roles we play is to   do good with the technology so well optimistic  you are very optimistic and just let me ask in   terms of philosophy I know in the past it was all  about speed and and moving forward quickly have we   shifted away from speed to resiliency no I think  you still I think it's it's an and like it's just   a pile on it's a little bit that's get out the  stress level it's a it's a everything is additive   you cannot slow down it's and that's right I mean  yeah yeah right yeah SAA what's your take on this   it's a new world changing so my one minute on this  yeah my one minute Spiel on this is that I think   we've got to give the business the agility that  it needs we got to be lean and Nimble our systems   have got to be more U more resilient because of  the fact that that so much uncertainty things   could change within a span of hours days these  days right I think we as the business depends   more and more on technology more and more on on  on on tools to kind of Drive everything we've got   to start thinking about resiliency within the it  organization as something that's very or for the   organization as something that's very that that  is paramount if you think about what the what   would happen if some parts of of our systems don't  work today it could be catastrophic and it could   affect our revenues could affect operations so  we've got when when we think of new technologies   we've got to think resiliency also as a part of  that and that's one of the reasons why within my   own organization I have resiliency as as one of  those functions that that's constantly thinking   about what are you doing for this if you're going  to be building a new AI model if this doesn't work   what happens what's the alternate we've got to  start thinking about that and because there's   there so much happening so much uncertainty so  much dependency we are dependent on our partners   and our partners are dependent on so many other  partners so we are in in a in a huge like you   know a you know supply chain based model that is  that is going to run all that so definitely think   about agility being lean Nimble how do we make  sure that we continue to survive and we continue   to thrive when when when when some catastrophe  hits us I think that's very important you know   ADV in advance of this discussion I told folks  that it was going to be a great conversation   with some really smart people it's a great part  of my job is that I get to talk to people who   are a lot smarter than me but today I was right  it was was a great conversation with some really   smart people and I'm really pleased to have been a  part of it thank you so much thanks Sacha, Devon,   Zach great insights terrific conversation I also  want to thank my colleagues behind the scenes   Holly McWalter of Foundry and Robin Clausen of the  C for making this research and discussion happen   they were invaluable and driving this forward  I had the easy part they did a lot of the leg   work and a lot of the leading up to the research  and preparation so thanks for much to them I also   want to thank our video team great group of people  to work with who always make these things come off   smoothly most of all thank you all for joining and  making time for us today whenever you're watching   this hope you found it valuable hope you found the  information useful for cio.com I'm John Gallant.

2025-02-02 13:09

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