Surfacing from crisis mode, CIOs find themselves redefining IT priorities, thanks to budgets in flux, a rising need to refine business processes, and new outlooks on the future of work.
Conn’s HomePlus CIO Todd Renaud spent the early days of the COVID-19 pandemic’s office shutdowns and store restrictions “just trying to get through the next day.” One month later, he’s setting his sights on what the next new normal might be, and what it will mean to the appliance retailer’s IT strategy over the next year.
“I’m going to assume that our remote workforce will be a larger percent than it is today,” he says. “How will that impact the company, assets and data? I’m thinking about the impact in our stores if we continue to have restrictions on the number of people” inside and other safety requirements. For example, Renaud is considering videoconferencing capabilities that could enable customers to virtually walk through the store with a sales rep serving as a guide to simulate an in-store sales experience.
“The unspoken expectation is of me staying as far ahead of the curve from a technology and an impact perspective as I can,” Renaud says.
That same expectation has been heaped onto most CIOs as organizations look to technology to help them pivot quickly. The coronavirus pandemic is affecting IT leaders’ roles and priorities, and forcing them to consider its long-term impact on their IT organizations and on business as a whole.
An IDG survey of 414 IT leaders in April found that most budgets will either hold steady or increase in the next 12 months. They also expect a renewed emphasis on operational efficiency, expense management and cost controls. Meanwhile, business collaboration, hiring and training will take a back seat in the coming months. CIO.com compared these responses to its 2020 State of the CIO Survey, which posed similar questions to IT leaders in September 2019 about their organizations’ IT budgets and priorities for the coming year.
Here is a deeper look at how IT priorities have shifted since the coronavirus upended business operations — and how several IT leaders are responding to the challenge of uncertainty in the months ahead.
Budgets hold mostly steady — while initiatives accelerate
Some 40 percent of IT leaders say their IT budgets will hold steady. Only 25 percent say their budgets will still increase in the next year, down from 59 percent who believed so in September.
Some of the budget increases are being used to ramp up remote work capabilities. At mortgage servicing firm NorthMarq, CIO Dan Ritch suddenly had to enable 500 employees to work from home on infrastructure that was set up for only 165 remote users. In three weeks, the firm put $150,000 of core infrastructure in place, extended its Citrix environment, added a new Citrix VPN, and purchased 50-plus laptops for remote users, a capital investment that was planned to take place over 18 months. “We’ve been able to put a sense of urgency into the infrastructure investment,” Ritch says.
More than one third of IT leaders (35 percent) say their IT budgets will now decrease in the next year compared to the past 12 months, as a result of COVID-19 disruption. That’s up from just 7 percent who had planned to decrease IT budgets when surveyed in September 2019.
With no clear timeline for a return to “normal” business, IT leaders say they’ll focus long term on cost control and expense management (45 percent), up from 29 percent in September 2019. With that, IT leaders also expect a bigger emphasis on increasing operational efficiency, according to 37 percent of survey respondents, compared with 24 percent in September.
Operational efficiency had always been on CIO Bron McCall’s mind at Extra Space Storage, especially when it came to enabling remote lease-signing for its storage units to save additional paperwork and physical steps. “I’ve been talking about that for years, but we had become hesitant to change processes that were already working well,” McCall says.
But when COVID-19 temporarily shut down offices, executives quickly came on board. “Within three days we were able to deploy remote lease-signing capabilities for customers,” from development to testing to releasing code into production. “That cycle time is what people hope to have with DevOps, and we’re actually realizing it,” McCall says. “I also realized that if we were all onboard with doing something, how quickly we could do it when we took down all the barriers.”
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