Gartner Special BELUX 2023

SPECIAL BELUX EDITION

PIETER DEN HAMER, VP ANALYST AT GARTNER

Gaining a competitive advantage with AI TOMAS NIELSEN, DISTINGUISHED VP ANALYST AT GARTNER

Unleashing Possibilities in Barcelona

KOEN VAN LIERDE, MANAGING PARTNER AT GARTNER CONSULTING,

Create a culture of innovation

A PUBLICATION BY

EMMANUEL BINARD, REGIONAL VICE PRESIDENT BELGIUM & LUXEMBOURG AT GARTNER

As technology and data become intrinsic to business, it is vital that governance adapts and evolves OCTOBER 2023

FOREWORD

The World’s Most Important Gathering of CIOs and IT Executives™ 6 – 9 November 2023 | Barcelona, Spain gartner.com/eu/symposium

Guiding CIOs and IT Executives Through the Future of Technology Join us for the technology, insights and trends shaping the future of IT and business Hot topics • Artificial intelligence • Applications, platforms and software engineering • Cloud, infrastructure and operations • Customer and citizen experience • Cybersecurity and risk management • Data and analytics • Digital and business transformation • Executive leadership and change management

Save €725 with code DutchIT

• Technology investments and value • Future of work • Applied innovation • Operating models • Strategic planning and execution • Sustainable and responsible business • Talent, culture and DEI

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Unleashing possibilities: more than ever thanks to AI

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his year marks another year when the Gartner ITSymposium/Xpo in Barcelona will live up to its name as the largest CIO event in Europe. It will come as no surprise that the emphasis this year is on the revolutionary impact of artificial intelligence (AI) on all aspects of companies and society.

The keynote, as we can read in the interview with symposium chair Tomas Nielsen, will focus on how humans interact with AI - how we shape it and, most importantly, vice versa. Instead of just defining the technology, we will discuss what generative AI means for CIOs in depth. There will be sessions dedicated to ethical issues, especially within the public sector, and how AI fits into various domains, such as sustainability and higher education.

The event comes at a critical moment in the geopolitical arena, with ongoing conflicts in Ukraine affecting the European region. We will touch on technology investments in the context of these risks, as well as on financial models and budgeting strategies, at a time of rising interest rates and inflation.

Under the theme of Unleashing Possibilities, Gartner wants to inspire delegates to harness the full potential of technologies in this day and age. This includes not only new technologies such as generative AI, but also how these technologies can be integrated into existing systems and processes. The role of the CIO is changing accordingly, with a growing trend towards the democratization of IT and collaboration with other CxOs. And so, as Nielsen suggests, get actively involved. He quite rightly urges attendees to talk to the experts, join in the networking, and proactively seek opportunities during the event. After all, the value of the symposium is strengthened by the involvement and enthusiasm of all who take part.

That is especially true for the inspiring Dutch CIOs & analysts session on Monday 6 November, as well as the traditional Holland House on Tuesday 7 November. See you there!

Marco van der Hoeven

gartner.com/eu/symposium

© 2023 Gartner, Inc. and/or its affiliates. All rights reserved. EVTM_966_2413792

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IN THIS ISSUE CREDITS Gartner Special, a Dutch IT Media publication Issue 43, Volume 11, October 2023 Gartner Special is a publication of Dutch IT Media Office and mailing address: Nieuwe Parklaan 17, 2597 LA. Den Haag Changes of address: R.blinker@dutchitmedia.nl Published annually Website: www.dutchitleaders.nl Managing Director Frans Vertregt f.vertregt@dutchitmedia.nl Telephone: +31 (0)6 109 46 545

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Tomas Nielsen, Distinguished VP Analyst at Gartner

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Koen van Lierde, Managing Partner at Gartner Consulting

Content Director & Editor in Chief Witold Kepinski redactie@dutchitchannel.nl Telephone: +31 (0)6 410 03 906 Editorial Staff Anne van den Berg, Jeroen Bordewijk, Wouter Hoeffnagel, Marco van der Hoeven, Floris Hulshoff van der Pol, Johan van Leeuwen, Teus Molenaar, Martijn Kregting, Hans Steeman Operations & Magazine Manager Monique Vreeswijk m.vreeswijk@dutchitchannel.nl Telephone: +31 (0)6 281 17 617 Sales Vincent van Sas v.vansas@dutchitchannel.nl Telephone: +31 (0)6 250 16 673 Charlotte van der Meer c.vandermeer@dutchitmedia.nl Telephone: +31 (0)6 519 93 244

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Pieter den Hamer, VP Analyst at Gartner

Emmanuel Binard, Regional Vice President Belgium & Luxembourg at Gartner

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Alicia Mullery, Vice President of Research, Gartner CIO Peer and Practitioner Research

Social Media Twitter: @witoldkepinski Twitter (Editors): @dutchitchannel LinkedIn: linkedin.com/in/witoldkepinski LinkedIn (Editors): nl.linkedin.com/company/ dutch-it-channel Facebook: www.facebook.com/dutchitchannel/ Lead Editor Michel Rolvink Photography Wim van IJzendoorn Design iMediate, Tim van den Berg Printing Damendrukkers, Werkendam This publication has been compiled with the greatest of care.

However, errors or omissions may still occur. The publisher accepts no responsibility for this. Articles gathered with permission by Dutch IT Channel B.V.

Foreword

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Pieter den Hamer, VP Analyst Gartner

Emmanuel Binard, Regional Vice President Belgium & Luxembourg at Gartner

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Alicia Mullery, Vice President of Research, Gartner CIO Peer and Practitioner Research 16

IT leaders need to respond to the rapidly evolving needs in the digital world

Tomas Nielsen, Distinguished VP Analyst at Gartner

Unleashing Possibilities in Barcelona

Koen van Lierde, Managing Partner at Gartner Consulting ‘Create a culture of innovation’

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Gaining a competitive advantage with AI

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Who ‘owns’ the digital transformation?

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Christie Struckman, Vice President of the Gartner CIO research team

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Stéphanie Pech, VP Team Manager Belux Executive Programs at Gartner

‘Culture is essential in digital transformation’

The CIO as a digital coach

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GARTNER SPECIAL - 2023

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Christie Struckman, Vice President of the Gartner CIO research team

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Stéphanie Pech, VP Team Manager Belux Executive Programs at Gartner 5

SPECIAL

‘IT leaders have to respond to the rapidly evolving needs in the digital world’

‘Gartner analysts work tirelessly to keep up with the rapid evolution of AI’

Business strategies are increasingly revolving around technology, which is affecting a wide range of digital leaders. Gartner is responding by serving other C-level executives strategically involved in IT, alongside CIOs. Dutch IT Leaders spoke to Emmanuel Binard, Regional Vice President for Belgium & Luxembourg at Gartner, about this.

‘

Looking back over the year since our last symposium at Gartner, our strategy has shifted to a new role-based approach,’ says Emmanuel Binard, Regional Vice President for Belgium & Luxembourg at Gartner. ‘Traditionally, our focus has been on the CIO. But we have recently diversified our approach by also aligning our offer to the needs of the CDAO, the CISO, and IT leaders in software engineering, for example.’

“

Binard sees this shift as recognition of the growing significance of technology at the heart of customers’ business, not to mention the rising importance of data and cybersecurity. ‘We no longer see these roles as mere extensions of the CIO, but rather as separate C-suite roles, each with their own agenda objectives and needs. Everyone at C-level needs to deliver and demonstrate value to the business.’

Putting the customer first

Binard continues, ‘Our approach has become increasingly customer-orientated as we step up our interaction with these groups. For example, the scale of our data analysis consultancy has tripled, while the number of CDOs we have come into contact with has increased more than threefold. We are seeing an enormous acceleration in these numbers, especially amongst the ranks of Chief Information Security Officers and IT leaders in software engineering. This development reflects the rapidly evolving needs of companies in an increasingly digital world.’

‘The growth in the C-suite brings with it a new dynamic, which affects the operations of companies and

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Skills

their boards of directors. As technology and data become intrinsic to business, it is vital that governance adapts and evolves. It is a fascinating development, and we are keeping a close eye on how these changes will shape the business landscape.’

An important item on the agenda in the near future will be the skills that people need to future-proof their careers. ‘With the rise of AI, particularly generative AI, it’s vital that we see these tools not as threats, but as a reality that we need to navigate through. We need to identify the risks, manage them properly, and equip our staff with the skills to use the tools effectively. That is so crucial.’

‘At our upcoming symposium, we will discuss various related topics, with a particular emphasis on the pillars of business strategy, leadership, and technology.

AI will feature prominently in our discussions since it is now all around us. Gartner analysts work tirelessly to keep up with the rapid evolution of AI and publish papers on AI applications in security, automation, HR, and sales.’

Influence

ITSymposium has come at a rather special time. ‘Over the past year, I have seen the impact of technology on both my professional and personal life step up significantly. Take one example: artificial intelligence (AI) and generative pre-trained transformer (GPT) models are becoming more and more visible in everybody’s lives. We are witnessing an acceleration in technology and cybersecurity trends, which are having a profound impact on how we live.’

Leadership

‘AI is a fascinating area, with significant implications for the way we live and work’ ‘It is intriguing to see how rapidly AI is progressing.

From my perspective as a professional in the technology sector, I’m particularly interested in generative AI. It’s a fascinating area, with significant implications for the way we live and work. I am keen to continue exploring what other effects it could have for us.’

GARTNER SPECIAL - 2023

Emmanuel Binard

Binard also expects a clear focus on the role of leadership in steering this transformation; after all, it is not only a technical subject, but also a human challenge. ‘One of the best tips I have for the symposium visitors is to make sure you register in good time. Last year we were fully booked for the first time, and we want to make sure our customers get their places on time. So, book ahead of time to ensure you can be a part of these critical conversations.’

On the question of why a CIO should go to a conference in Barcelona for four or five days, he answers: you don’t know what you don’t know. Looking at the aftermath of the COVID-19 pandemic, we have all seen how much something beyond our control can

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SPECIAL

The World’s Most Important Gathering of CIOs and IT Executives™ 6 – 9 November 2023 | Barcelona, Spain gartner.com/eu/symposium

change our mentality and way of working. It’s easy to fall back on familiar routines and underestimate the importance of technology. But I believe that there’s no better platform than a C-level meeting to challenge your own convictions. You can get the facts, learn about proven methodologies, and meet peers from different backgrounds – all at the symposium.’

Hype

‘A gathering like this can help dispel the hype surrounding some of the technological developments and provide the clarity we need. CIOs who don’t take advantage of these opportunities may find themselves lagging behind when the business begins to implement new technologies. Take GPT as an example... how do you provide leadership through changes that can be so significant and impact your

‘Giving clear priority to deploying resources and demonstrating value are becoming more and more important because of the high expectations on technology as well as rising costs.’

Transition

‘I believe that there are plenty of executives still trying to get their ahead around the shift from the old to the new world. Traditionally, CIOs were orientated around operations, leading teams of engineers and translating binary code into business language.

Nowadays, they need to be leaders with the right technological skills. This transition requires personal growth and even a change in their approach, such as mastering the art of saying no.’

‘Giving clear priority to deploying resources and demonstrating value are becoming more and more important because of the high expectations on technology as well as rising costs. CIOs need to excel in optimizing their assets to build credibility and trust, enabling them to invest more.’

‘Though, it isn’t easy to increase an IT budget by, say, 20%. That’s why effective management and reporting are essential to earn the confidence needed to strengthen the results delivered through digitalization. Here’s an interesting fact: 67% of CFOs say they are unaware of how much digitalization has done for the bottom line. This difference between actual and perceived value underlines the importance of proper management and reporting. In the past, CIOs often worked behind the scenes, but now they are playing a more visible part and have to deal with a significant change to their role.’

business in areas such as privacy and copyright? If you don’t take on your responsibility to understand and manage these technological shifts, you can open your business up to unnecessary risks or miss out on potential opportunities.’

‘As a professional who is often in conversation with managers at C-level, I regularly hear about the challenges they face. They come to Gartner for advice on a wide range of topics. A key theme in these conversations is the struggle to adapt to the rapid pace of technological change and the need for effective governance strategies in a world that is digitally transforming. Not only do they want to come up with the right response to these shifts, they also want to take advantage of the opportunities they offer.’

Guiding CIOs and IT Executives Through the Future of Technology

Join us for the technology, insights and trends shaping the future of IT and business Hot topics • Artificial intelligence • Applications, platforms and software engineering • Cloud, infrastructure and operations • Customer and citizen experience • Cybersecurity and risk management • Data and analytics • Digital and business transformation

• Executive leadership and change management • Technology investments and value • Future of work • Applied innovation • Operating models • Strategic planning and execution • Sustainable and responsible business • Talent, culture and DEI

© 2023 Gartner, Inc. and/or its affiliates. All rights reserved. EVTM_966_2413792

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GARTNER SPECIAL - 2023

Save €725 with code DutchIT

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gartner.com/eu/symposium

SPECIAL

GARTNER CHAIR ITSYMPOSIUM

‘Unleashing Possibilities’ in Barcelona Tomas Nielsen, Distinguished VP Analyst at Gartner, has been appointed chair of ITSymposium once again. Dutch IT Leaders spoke to him about this year’s themes, and the role he plays in the largest event for CIOs in Europe.

BY: MARCO VAN DER HOEVEN

I

t’s no surprise that artificial intelligence (AI) will feature prominently in Barcelona this year compared with previous years. ‘The media haven’t stopped talking about generative AI and GPT chatbots,’ says Tomas Nielsen. ‘Open any magazine or log onto a news website and you’re sure to find something on these transformational technologies.’

‘We have already announced on our website that our keynote will focus on generative AI. But with a unique perspective: we want to discuss how we shape AI and how AI in turn shapes us. Instead of simply telling people what generative AI is, we want to discuss what it means for CIOs in depth. Since they routinely receive questions from their colleagues and CEOs on this, we’ll discuss more the complicated aspects. For example, how should you handle AI risks?’

Sustainability

Gartner is running a session on involving senior executives in the AI discussion. Speakers will also discuss aspects such as AI adoption, decision-making, and ethics. ‘We have planned a session for people in

‘Instead of simply telling people what generative AI is, we want to discuss what it means for CIOs in depth’ government to discuss ethical AI-use cases and about what ethics in the public sector means for AI. We will be incorporating themes such as AI and sustainability, and AI in higher education. Our goal is not only to acknowledge that AI exists, but to explore its implications even deeper.’

Nielsen continues, ‘It’ll be interesting to talk to all the CIOs there about these issues. Fifteen years ago, a leader would read about a technology in a magazine and then ask their CIO about it, but now everyone reads and writes about generative AI. You will find

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plenty of reports about generative AI across various social media and other platforms. We are even starting to develop a new language around it, such as prompt engineering, and we are discussing whether we should use private or public generative AI.’

Risk

And then there’s the ongoing issue of risk management. ‘A year ago we were recovering from the shock of the early days of the conflict in Ukraine. Here we are one year later, and we are still working, especially in Europe, with a war going on in our own back yard.

There are a lot of risks involved in this situation. We also need to look at technology investments and how valuable they could be. What should you do when interest rates and inflation rise? We have scheduled sessions to tackle financial models, budgeting strategies, and how to use analytics.’

The theme this year is Unleashing Possibilities. ‘Our aim is to help our customers make the most of these opportunities. What’s the next step? Looking at the CIO as a strategic leader, it’s about finding out how to unlock the full potential of different fields, such as generative AI, security, and digital working. How can we link all these elements and unlock the wider potential of technologies in this exciting age?’

Nielsen’s team is currently working hard on the sessions for the upcoming event. ‘This event is not something we only start planning a few months beforehand. Our preparation begins in December, when we look at the feedback from the previous year. After seeing how successful our first post-COVID event was, we are curious to see how we can make the experience even better. One change we are making are the 30-minute sessions, in response to feedback that called for more bite-sized learning experiences.’

‘We put these sessions together, fine-tune them, have them reviewed by colleagues, refine our commu-

GARTNER SPECIAL - 2023

outside the formal IT organization. This doesn’t make the role of the CIO redundant; rather, it reinforces the need for cooperation between the CIO and other CxOs. We are actively exploring the best way to facilitate this collaboration at our event.’

Nielsen concludes, ‘It’s easy to get caught up in trending topics such as generative AI, but we mustn’t forget that CIOs and technology managers are judged on a wider spectrum. They are judged on their ability to deliver a wide range of technological solutions Tomas Nielsen and facilitate the broader transformation of the business. This may include working on application spaces, stannications, and ensure that we are presenting new dard systems, and other building blocks. Our goal is and useful insights. I think it’s a great introduction to provide an all-encompassing event that incorpoto some of the most pressing topics we are going to rates all of these aspects.’ explore.’

What you put into it Democratization of IT

‘As chair of this year’s event, my role will largely be to coordinate and choose from the wide range of fantastic content proposals that we receive. Not only do we have presentations from our analysts, but also keynotes by external speakers. We have put together a fantastic programme, including some sessions we’ll be announcing soon that promise to be very exciting.

We will also have an exhibition space where our exhibitors will showcase their innovative ideas and how these fit into this rapidly changing world.’

Preparing for an event of this magnitude requires foresight and profound consideration. ‘We aim to predict what CIOs need to brace themselves for in 2024 and provide them with the tools to navigate the challenges ahead. A major trend we are seeing is the democratization of IT, meaning the availability of IT

‘The last point I’d like to stress is that, as with any course, training session, or event, you only get out of it what you put into it. So, I advise everyone not to be passive and just listen along, but to actively seek opportunities. Book one-to-one meetings with the experts. Network with your peers. If you’re attending a session, don’t hesitate to approach the speaker afterwards. Most of our speakers are so passionate about their topics that they can talk about them for hours.’

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SPECIAL

‘Create a culture of innovation’ The way that governments innovate using technology is in the spotlight at the moment. The impact of this is huge, but the market is constantly changing. Gartner Consulting supports government CIOs in making strategic decisions about their digital transformation.

K

oen van Lierde, Managing Partner at Gartner Consulting, has been working closely with the public sector for ten years. He is responsible for the advice that Gartner gives to governmental organizations in Belgium. He also coordinates the public-sector market in the Benelux region, Germany, Austria and Switzerland. This means that he works for national and local governments, but also for international organizations in our customer portfolio, such as NATO, the European Commission, and the United Nations.

He explains, ‘Gartner Consulting is a natural extension of Gartner Research and advice offering. We visit customers on-site to help them ramp up certain initiatives. Once they have been advised by Gartner Research, our consultants then develop their strategy further in their specific customer context, taking all the actors and stakeholders into account.’

Acceleration

‘We help our customers to speed up their critical projects, so they can make the right decisions quickly.

There’s a host of digitalization initiatives going on within government, which means there are lots of decisions to be made: about the budget, the business case, and the partners they want to collaborate with.

‘Governments are trying to figure out how they can seize the benefits of cloud computing while still complying with privacy legislation’ We are often asked to speed up the decision-making process within these strategic projects.’

The challenges he often encounters with the government lie in different areas. ‘There has been something strange going on in the IT industry for two years, for example. For the first time in a very

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long time, unit prices began to rise. Previously, IT unit prices fell on average by a few percent per year, for both hardware and software. But now salaries and hardware & software prices are both rising.’

tunities. It has always been a market, now probably more than ever, where a lot of promises are made and opportunities are demonstrated. But the question is: how can we be smart about using this? When is the right time to deploy a particular technology?

When can it start being of value to me and what should I look for to avoid teething problems or problems at the beginning of a trend?’

Prioritizing

‘As a result, all organizations are seeing their costs rise, and they’re wondering how to keep their budget under control. So, whereas you used to have a chance of agreeing on a discount at the end of a contract, you now need to think about what things you want to prioritize to stay within budget.’

Moreover, many customers engaged in digital transformation are aware that major parts of their infrastructure and application portfolio need to be renewed. ‘We call this renovating the core. They are replacing networks, with 5G technology, as well as replacing the back office of processes, which often have to do with financial aspects. These are major strategic programs, where many crucial decisions need to be made quickly, just like when performing open heart surgery.’

Cloud

Another pressing issue is how to approach cloud computing. ‘Governments are now starting to try to figure out how they can seize the benefits of cloud computing, while still complying with the privacy legislation that has been introduced in recent years. After all, they’re dealing with very sensitive data.’

Another, more recent item on the agenda has to do with generative technology. ‘The question more than anything is how they can make the best use of this.

They want to map out the risks associated with the data you provide and what happens to it. Our government clients are very cautious about this. They see how attractive this new technology is, but want to stop and think about how to use it responsibly, in a controlled manner, without breaching privacy law or security.’

Europe

Because of his global outlook, Van Lierde can see clear differences in the degree of maturity with which

GARTNER SPECIAL - 2023

Hot topic

Koen van Lierde

governments are approaching with IT. ‘The picture in Europe is very broad: one country might be at the forefront of one area, but falling behind in others.’

‘Belgium, for example, is lagging behind in deploying network infrastructure, in the field of fibre optic and in other areas. But conversely, it’s ahead of countries such as Germany with making access to digital public services clear and easy. So, it’s not the case that one country is behind or ahead on all fronts.’

‘The right time and the right way to get involved in a technology have always been and remain a hot topic at Gartner. Many people ask Gartner that very question, which is linked to the core theme of this year’s conference. This has to do with what we call the operating model, in the broadest sense of the word.

It’s about how you are organized, how you develop talent, how you design the workplace, and the culture you want to shape.’

‘We believe it’s important to implement structures in the organization that enable structural innovation, rather than something we only do when we have time. We need to give people specific roles and responsibilities. A key aspect of this is that the organization’s management bears a great deal of responsibility, stresses how important it is, and sets a good example to the rest of the organization. That is how you create a culture of innovation and make it a success.’

Culture

These trends will also be discussed at ITSymposium in Barcelona later this year, under the theme of Unleashing Possibilities. ‘What I think is important about this theme is the Create a Culture of Innovation section. This will bring a lot of benefits to employees, customers, and the general public. So, that’s relevant to the public sector.’

‘The important thing is that there are a lot of oppor-

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AI

SPECIAL

Gaining a competitive advantage with AI

‘AI can be abused by malicious actors, not only in the form of cyberattacks, but fraud too.’

Much has changed since the last Dutch IT Leaders interview with Pieter den Hamer, VP Analyst at Gartner, a year ago – not least because of all the developments around generative AI. ‘Artificial intelligence was the mother of all hypes,’ says Pieter den Hamer. ‘We could now even call it the grandmother of all hypes. But below all the hype, there is also a lot of substance.’

BY: MARCO VAN DER HOEVEN

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n Barcelona, there will be a lot on the programme about this. ‘The focus is on AI of course, but other topics will also be covered. Plus, a number of interesting presentations will feature on the programme. One of them is about the implications of not only ChatGPT, but also related technologies for organizations. So, what does that mean for you, in both strategic and operational terms?’

Future of work

‘Another presentation is about the future of AI, a question that is often asked because developments are moving so fast. And then there’s a pre-

become a major trend in AI. What was surprising, from a societal point of view, is that ChatGPT went viral, including its Dutch version.’

Surprised

‘No-one, not even OpenAI, expected it to be such a big hit. At Gartner, we think this is mainly because people were surprised by its seemingly high reliability and the human nature of the language generated by GPT and other generative technologies. That has created a great deal of excitement. But it has also resulted in widespread awareness amongst directors and leaders that AI is evolving very quickly and that we need to do something about it.

‘That leads us to conclude that AI is not yet mature enough to completely replace people.’ sentation about the impact of AI on the future of work. We don’t think that AI will replace all jobs in the short term; the technology isn’t there yet. But we do believe it will have an ever greater impact on the way we work. We’re unlikely to lose our jobs, but we will end up working a different way.’

‘We can look at these developments from different perspectives. From a tech point of view, it was no surprise that generative technologies would

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Organizations previously reluctant to get involved are now feeling the pressure. There is a fear of missing out, or FOMO, in the market right now.’

‘Some organizations had already made strides, while others were not really interested in AI, but they’re now realizing that they need to do something about it. It’s a kind of tipping point in the adoption of AI, which leads to a huge acceleration. We already know how important it is as a technology, not

just for organizations, but for society as a whole. There are lots of feelings and emotions about AI, from extremely positive to extremely anxious. It’s important to equally acknowledge overly optimistic and overly pessimistic feelings. They play an important role in our confidence in and application of AI.’

Hype

‘My first piece of advice is not to let yourself get carried away. There’s a lot of hype surrounding AI, but it’s not like it’s some sort of miracle cure. It’s still a technology you can start adopting on two levels. Firstly, you can use AI to improve what you’re already doing.

It can make your employees more efficient, by producing texts faster or making more accurate predictions to be better prepared for the future, for example. That’s all very well and good, but it’s not really game-changing or transformational.’

‘If you really want to use AI as a competitive advantage, you have to be more creative. Consider using AI to develop new products or services, or even new business models that were previously just beyond reach or completely infeasible. We are seeing that the most successful new companies of the last ten years are all AI-native, meaning they are built with AI in their DNA. Using AI in their products and services is second nature to them.’

GARTNER SPECIAL - 2023

Pieter den Hamer

Value

‘My advice is therefore to investigate where AI can add value to your current business, maybe through greater efficiency or productivity. But if you really are serious about adopting AI, look at where there is potential for game-changing innovations.’

‘In the pharmaceutical industry, for example, where AI is being used to create new molecular structures for antibiotics. These are much stronger and more effective than the current generation of antibiotics and also produce fewer side effects. And you can run simulations to see which molecules are most effective, instead of traditional laboratory testing.’

Impact

Den Hamer expects that these kinds of AI applications – even if less well known than applications such as ChatGPT – can have a much greater impact. The same goes for developing new materials and products, which is

quietly revolutionizing the materials sciences and the food industry. ‘We’re talking about new materials and products that we can hardly even imagine at the moment... the ones you only see in sci-fi movies.’

‘Closer to home, we are also seeing AI being used in a more advanced way to optimize business processes, especially in logistics and call centres, or traffic management. This offers benefits such as more efficient planning, as well as more effective handling of unexpected events and disruptions. I think there is huge potential over the years to come, both for individual companies and for society as a whole.’

and “hallucinations”. Discrimination and breaches of privacy and intellectual property are also well-known risks.

Some people put this down to teething problems, but if you look closely at it, these are serious issue. The limited transparency – the fact that we can’t really see how AI comes to its conclusions – is also problematic. These problems cannot be solved simply by using more computing power and data.’

‘So, we should be cautious with our optimism, especially when it comes to the reliability and transparency of AI. The current models still have a long way to go. That leads us to conclude that AI is not yet mature enough to completely replace people. But with increasing adoption, accelerated by the current hype, the way we work will undoubtedly change.’

Risks

However, the risks of AI should not be forgotten. ‘AI can be abused by malicious actors, not only in the form of cyberattacks, but fraud too. Perhaps even more fundamentally, the current generation of AI also has its limitations, including reliability problems

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GARTNER RESEARCH

SPECIAL

Who ‘owns’ the digital transformation?

Alicia Mullery is Vice President of Research for Gartner’s CIO Peer and Practitioner Research.

Unlike a typical analyst, she spends most of her time interviewing CIOs, identifying their key challenges, profiling case-study examples, and presenting her findings. One of the most important areas her team focuses on for ITSymposium is the collaboration between the CIO and CxO, looking at the relationships that should exist between these two parties.

‘Boosting diversity often begins with a bold and conscious decision by the CIO’

BY: MARCO VAN DER HOEVEN

“

O

ne of the biggest challenges that CIOs face is teaming up with the CxO to get the most out of digital transformation,’ says Alicia Mullery, Vice President of Research for Gartner’s CIO Peer and Practitioner Research.

Some facts and figures: Around 89% of boards say that their digital strategy is no longer one viewed in isolation, but forms the core of their business strategy. Approximately 85% of CEOs also say they want to invest more in this. But most Chief Financial Officers (CFOs) say that investments in digital transformation are underperforming.

67% of them believe that digital investment does not deliver the expected results.

‘This is a clear discrepancy that needs to be addressed. We also presented this data at our CIO Leadership Forum.

While we can investigate why expectations are not met or why the ROI is taking longer than first thought, the bottom line is that CFOs are not satisfied with performance. This led us to wonder: who actually owns the digital transformation in their company?’

Questions

Gartner conducted a survey of about 600 CxOs, asking them questions about different aspects of their digital transformation: owning a digital initia-

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tive, investing in digital transformation, managing the risks, and building digital agility. ‘We wanted to know whether they felt responsible for these areas or whether they considered it to be someone else’s responsibility. Remarkably, the vast majority (about 80%) of CxOs claimed that it was their responsibility.

When asked whether they thought it was the CIO’s responsibility, they said the responsibility was a joint one.’

‘However, when we asked these CxOs to assess themselves on their competence in these areas using a standard grading system (A to D), their self-assessments were overwhelmingly low,

Action

On the question of where CIOs and other senior leaders should focus, there seems to be an urgent need for collective action. ‘CIOs should help CxOs to understand what effective digital leadership looks like and how they can develop these skills. It is a critical area of focus, given the substantial investment and the fact that the organization’s success depends heavily on effective digital leadership.

We were curious to know what distinguishes successful CxOs (those who not only score themselves higher but also achieve remarkable digital results)

‘One of the biggest challenges that CIOs face is teaming up with the CxO to get the most out of digital transformation’ with most giving themselves a D. This surprised us at first; we didn’t expect this level of self-awareness about their shortcomings. However, it did provide a crucial insight: many CxOs recognize the importance of being a digital leader, but also openly admit that they are struggling and unsure of how successful they are in this role.’

from those who are struggling. What makes them different?’

Researchers found that CxOs fell into a few different categories. ‘The most successful, in terms of digital partnership, were those who co-led digital initiatives. Typically, the CFO acts as a sponsor, with updates provided quarterly by the CIO, who reports back and then takes suggestions and re-prioritizes tasks accordingly. But the best performing CxOs do things differently.

GARTNER SPECIAL - 2023

Alicia Mullery

They form cross-functional teams, blurring the lines between business and IT roles. They work closely with the CIO and meet not quarterly, but every two weeks. In these organizations, it is common for a CxO to answer IT questions and vice versa.’

Diversity

Another important topic for CIOs is diversity – both in terms of ideas and staff – for their organizations to succeed. ‘Making this a priority remains a challenge. Urgent or pressing matters such as generative AI often take precedence. Moreover, addressing diversity, equality, and inclusion is complex, interwoven with societal standards and structural barriers, so it cannot be tackled by a single company.’

Mullery mentions a recent experience at a Gartner event that underlines this topic. ‘Coca-Cola’s CIO gave a keynote, speaking about her commitment to promoting a diverse team, a mission she took on in her five-year term in post. She shared a powerful insight: the importance of identifying a personal reason to appreciate diversity,

because without that, it’s all too easy to overlook the subject.’

Younger generation

‘Furthermore, she said that it pays to think for yourself about how potential candidates view an organization.

Using her own LinkedIn profile as an example, she wondered how it would be seen by younger generations and whether it would prevent them from joining her team. This prompted her to rethink how she presented herself and her organization, taking into account factors such as her messaging, profile picture, and the language she used to describe her organization.’

‘Her advice really spoke to me. It’s a small, useful step that any CIO can take to increase diversity on their team.

Thinking about someone’s personal online presence and the image it projects can have a major impact on the diversity of potential candidates interested in joining the organization. It raises crucial questions about the kind of people they might be able to attract and whether they feel comfortable with it. If not, are they willing to change

this to improve diversity?’

There are several factors to be taken into account. ‘First of all, this decision sends a signal to the rest of the organization. Secondly, an emphasis on diversity alone is not enough. Without promoting a sense of inclusion, individuals may feel isolated, despite increased diversity. So, diversity and inclusion must be developed in tandem. And an important aspect in promoting inclusion is nurturing a culture in which people feel motivated to be allies and to demonstrate openness. This could attract more diverse candidates.’

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DIGITAL TRANSFORMATION

SPECIAL

‘Culture is essential in digital transformation’ The digital transformation is not just about technology – it’s also about new ways of working. But because people have to adapt the way they work, digital transformation is also a culture change. And the executive who plays a key role in this is the CIO.

‘It’s the CIO who needs to make the necessary changes that are part of the new way of working.’

BY: MARCO VAN DER HOEVEN

M

“

any CEOs see the need for a cultural change in their organization,’ says Christie Struckman, Vice President of the Gartner CIO research team. ‘They look closely at their strategic goals and recognize the need to adapt their way of working. The Chief Information Officer (CIO), in particular, is often responsible for driving that cultural change as part of the ongoing digital transformation.’

Because it’s the CIO who needs to make the changes that are needed to shape that new way of working. ‘In an age where data is key to making decisions, managing organizations, and optimizing operations and supply chains, it’s the CIO who sets up the

be presenting various case studies that demonstrate best practices. One recurring theme that I often observe is that leadership frequently sees resistance to change. But I don’t think that’s a fair representation. Specifically, the problem often lies in mutual understanding, but that doesn’t imply an inherent resistance to change. For example, when managers stress the need for more collaboration to achieve the organization’s goals, employees will say they already work well together and that it’s not them, but everyone else who needs to improve.’

The problem therefore arises when we use general terms to talk about culture, such as being more productive, more innovative, more proactive,

‘The biggest pitfall in change journeys is often inconsistent communication from leaders.’ infrastructure required. However, the investment in that infrastructure will have been for nothing if employees don’t use the data available to them.

That’s why cultural change is such an important part of the digital transformation.’

Resistance

Christie Struckman supports CIOs through cultural transformations.

‘At ITSymposium in Barcelona, I will

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or more data-driven. ‘These terms are used so often that they lose all meaning, which leads to the need for change being misinterpreted.’

Empowerment

To avoid confusion and bridge that gap in understanding, Gartner has developed a practical tool. ‘This tool helps to articulate the desired behaviour clearly, comparing it with the existing behaviour. Another essential aspect

of organizational culture is that it’s the result of everything within the organization that teaches employees how to behave. A formal, hierarchical culture with multiple layers of approval for simple tasks, such as buying a stapler, may suggest that employees are not empowered enough. If that’s the case, then that’s how they’re going to behave.’

The concept of culture as a result, Struckman believes, is therefore crucial to understanding the processes, systems, and practices across the organization that drive employee behaviour.

‘Once we have a good understanding of the desired behaviour, we can then carry out a systematic assessment of the existing practices. This process is aimed at identifying and modifying the things that strengthen the current behaviour, so we can stimulate the desired cultural shifts. This approach to cultural change goes down well with companies because of its structured methodology. It gives them a clear roadmap to changing their culture, and provides a clear North Star strategy.’

Skills

All of this will affect the CIO’s tasks and responsibilities. Struckman continues, ‘What’s fascinating is that CIOs have proven expertise in change management. It’s one of their core competencies, because IT actually drives the majority of changes in a company. CIOs can also apply these change management skills to the concept of cultural change.’

GARTNER SPECIAL - 2023

‘Because when they roll out new technology, they usually follow a structured process, in the same way as we do for cultural change. This helps them understand the importance of not surprising people during change management. So, CIOs already have the core skills they need; they just need to apply them in a new context.’

Trend

One of the trends Struckman has observed with customers is this fluctuation between centralization and decentralization. ‘This has been happening for years, and currently the pendulum is swinging back towards centralization. One of the organizations we worked with merged several separate IT departments and grew from its central headquarters with several subsidiaries to one large global IT team. However, the merger created a noticeable us-versus-them culture.’

‘This is to be expected when different factions come together: feelings of “that’s what head office wants, but we need something else”. To counter this, the organization had to appeal directly to that culture. The CIO must ensure that the organization not only understands the changes; it also needs to systematically changes practices to reinforce the new behaviour, for example by emphasizing that consolidating IT is a major advantage for the company’s development, because they then have more growth opportunities within a larger organization.’

Christie Struckman

Communication

‘The biggest pitfall in change journeys is often inconsistent communication from leaders. When an organization tries to make change happen, success depends on its leaders being united.

If there are nine managers behind a change, for example, but only three are committed, four are ambivalent, and two are completely opposed, the chances of success are significantly reduced. Employees are also connected outside their official organizational structure: they speak to each other and share information, and they know when their managers are squabbling between themselves.’

‘Inconsistency between leaders – where some of the organization embraces change while others remain opposed or indifferent – is likely to lose employees’ support for the change

rather than encouraging them to embrace it. So, leaders have a huge responsibility in managing change, ensuring consistent messaging, and correctly gauging employee responses.

This will enable them to manage the changes that digital transformation calls for.’

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SPECIAL

The CIO as a digital coach ITSymposium provides a much-needed opportunity for us to catch our breath in the whirlwind of technological advances. ‘It gives CIOs the opportunity to think about the impact and repercussions of these developments on their organizations,’ says Stéphanie Pech, VP Team Manager Belux Executive Programs at Gartner, in this interview. ‘It’s important to remember that technology is only the tip of the iceberg. Although it might seem like the most obvious place to start, the consequences are far-reaching and affect culture, governance, ethics, compliance, and the overall pace of organizational change.’

S

téphanie Pech, VP Team Manager Belux Executive Programs at Gartner, looks at trends primarily from the perspective of a Chief Information Officer (CIO). ‘I believe that attending the symposium is an essential part of self-care for any CIO, as it offers the opportunity to take a step back and reflect, in the fastpaced world of technological innovation,’ she says.

‘Take the dramatic growth of generative AI, such as ChatGPT. This technology opens up a world of possibilities, and CIOs need to understand its implications and devise strategies for them. This includes addressing overall hyperautomation, the ubiquitous presence of intelligence, and the CIO’s critical role as a digital coach for their organization.’

Influence

The CIO’s influence now stretches beyond managing technology adoption and integration. ‘They must also take into account the business implications, the consequences for management, and their role as digital coaches for executive committees and boards. With increased awareness of technological progress, CIOs are often asked to explain these evolutions to the board, which requires a robust ability to communicate using business language.’

Pech says that 89% of boards today incorporate digital technology into their growth strategies – a remarkable

20

increase from the 71% a few years ago.

However, various economic setbacks and the geopolitical landscape are complicating things. ‘This environment requires constant investment in technology, which brings the financial management of these investments into focus. The key question is how best to prioritize these investments to ensure you get a return on them.’

progress with their digital business transformation. Moreover, 70% of digital leaders feel that their progress is not significant enough, and 67% of CFOs note that digital spending over the last three years has not met the company’s expectations. That’s why the CEO often turns to the CIO, expecting them to make the digitalization journey a success.’

Talent

Orchestration

Another core concern is talent acquisition. ‘Even if the labour market improves, there are still questions that

Pech consciously refers to the role of the CIO as coaching. ‘The concept of coaching includes the art of influencing. It’s not just about taking control directly; the true art of leadership lies in the role of a trusted advisor. This requires leadership capabilities, by communicating the value of digital technologies to leaders who don’t understand their value yet. The CIO’s task is to drive this approach effectively to deliver on the company’s ambitions.

Digital transformation is a team sport played in the highest league.’

This high level of control and expectation, combined with a shortage of talent and investment orchestration,

‘To really succeed, CIOs must be able to expand their influence and leadership within the organization.’ need to be answered. What talent do you need to grow technology in the organization? Which roles should you hire for and which need to rely on the wider ecosystem? With resources scarce and talent lacking, companies are rethinking their value propositions for employees and how roles are structured within IT.’ The third challenge is to drive the adoption of technology within companies and demonstrate its value.

‘Although 89% of boards consider technology to be crucial for growth, 81% say they are not making enough

Digital coach

makes the CIO a sort-of digital coach at board level. ‘In response to these challenges, we have revamped our executive programs to better respond to the needs of CIOs. We offer more research to help CIOs connect with their business colleagues, whether it’s finance, sales, legal affairs, or organizational development. We help them learn to speak to and influence these stakeholders. We also offer an emerging technology stack of research to keep up with the developments.’

The role of the CIO is no longer just about orchestrating technology

GARTNER SPECIAL - 2023

Stéphanie Pech

within their teams; the technology is becoming more widespread. In an era when talent is so scarce, it simply isn’t enough to rely solely on IT departments. ‘We have to harness the potential of business technologists, as Gartner calls them, spread throughout the organization. This situation presents both a challenge and an opportunity for CIOs to influence, orchestrate, and coach a highly distributed organization. Addressing these issues is one of the focal points of our upcoming symposium.’

Operating model

According to Gartner, the best-inclass organizations have transformed their operating models. ‘They have opted for a more integrated approach

within the company, and only when they have achieved this distributed model – which we call a democratized technology delivery model – will they reap the benefits of implementing the technology.’

‘Leaders keep the momentum going and offer a broader perspective with several options. That’s where the art of motivation lies. Leaders push the boundaries of their team members and strive for commitment and dedication. The reason some struggle with digital adoption is not because they lack individual skills, but because they aren’t playing as part of the team. To really succeed, CIOs must be able to expand their influence and leadership within the organization.’

‘ITSymposium is a great opportunity to learn, reflect, and think about the next critical steps to take in order to make a positive impact on our society and businesses, which are part of this new reality of highly distributed business technology.’

‘But if the organization still sees the IT department as somewhere far removed from the business, somewhere you just outsource to, then you can say goodbye to any hopes of progress.

It’s crucial to address the governance, culture, financing methods, and performance management issues that are below the surface, just like the part of an iceberg that’s underwater. Organizations are now being bold enough to try to solve these problems with the help of the CIO.’

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The World’s Most Important Gathering of CIOs and IT Executives™ 6 – 9 November 2023 | Barcelona, Spain gartner.com/eu/symposium

The World’s Most Important Gathering of CIOs and IT Executives™ 6 – 9 November 2023 | Barcelona, Spain gartner.com/eu/symposium

Unleash Possibility

Guiding CIOs and IT Executives Through the Future of Technology

See why technology leaders say this is “the must-attend conference of the year.”

Join us to explore: Powerful keynotes ranging from technology leaders to celebrity guests

An expansive landscape of sessions supporting all roles

A dynamic, vibrant IT Xpo connecting you with the right platforms to propel your organization forward

Planned and unplanned peer networking available in a variety of formats

In-the-moment insights that you can access only through Gartner

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Join us for the technology, insights and trends shaping the future of IT and business Hot topics • Artificial intelligence • Applications, platforms and software engineering • Cloud, infrastructure and operations • Customer and citizen experience • Cybersecurity and risk management • Data and analytics • Digital and business transformation

• Executive leadership and change management • Technology investments and value • Future of work • Applied innovation • Operating models • Strategic planning and execution • Sustainable and responsible business • Talent, culture and DEI

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© 2023 Gartner, Inc. and/or its affiliates. All rights reserved. EVTM_966_2413792

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