IBM’s Institute for Business Value released its annual C-suite study recently, and the findings have some notable relevance for SMB owners. These surveys poll C-suite executives in different circumstances than your average business owner, so not all of these findings are applicable to your situation. However, several important insights can be gleaned from this study, as these executives face many of the same common denominators as you do in your business. Spoiler alert: businesses of all sizes are presently struggling to create and sustain effective IT solutions, in part because IT is not viewed as part of organizational strategic thinking.
One of the more interesting takeaways revolves around the significant gap in what CEOs believe about their IT as opposed to what their own tech executives (CTOs) believe. First, let’s note an area where they agree: all executives agree that IT services within organizations have grown LESS effective over the past decade. That’s troubling.
Importantly, when the results are broken down by tech vs. non-tech executives, some of the disagreement comes into focus. Just over 1/3 of CEOs say their IT is effective, a significant decrease from about 2/3 just a decade ago. Just under half of CTOs believe their IT is effective. While that is a decrease from a decade ago (69%), it still shows a significant gap in how tech and non-tech executives understand their IT situation.
Elsewhere in the survey, some of the reasons for this discrepancy come to light. Tech leaders appear to believe that executives in their company do not value IT appropriately or seem to have unrealistic goals and aspirations related to innovations (including AI, in particular).
“Great information,” you say. “Thanks for the irrelevant info. As an SMB owner, I don’t have a CEO, CFO, CIO, CTO, and CDO.”
Maybe not. But here’s what is interesting: we find similar approaches to IT among business owners of all sizes. That is, that same discrepancy between a business leader’s IT expectations and IT performance can be found in many, many companies.
We find that business owners like you experience frustration with your IT services. The reasons for this are wide-ranging, but there is some overlap with the circumstances of these C-suiters.
First, IT has become increasingly involved (even tangled, sometimes!) in every part of a business’s life. Technological demands on employees, computers, networks, hardware, software, IT staff, and IT leaders have increased. Technology CAN make many things easier. However, that tech usage must be efficient, targeted, and well-trained. It is likely that you’ve experienced this frustration when navigating a new software, troubleshooting a computer problem, or (im)patiently awaiting a downed system to come back online. When so much of what we do in business relies on technology functioning correctly, any hiccup in that technology creates significant headaches for us.
Second, consider the tension between IT innovation and budgeting. One of the more interesting results of the survey shows that CTOs who collaborate with the CFO and who have a “seat at the table” in decision-making contribute to a more innovative and efficient business. On the other hand, typical complaints exist from one side of the house against the other – CFOs complain that tech leaders working in isolation fail to contain costs, while CTOs argue that their companies fail to invest in innovative IT solutions. Businesses tend to rely on old tools, legacy systems, and outdated hardware. This is a result of IT as a mid-level priority; the report says that “despite a growing team of technology leaders, ‘technology’ has not consistently and effectively been integrated into strategic decision-making for the business.”
Again, this tension applies to business leaders of all stripes. Because IT is intricately tied into what businesses do, sufficient and effective IT planning and budgeting must be an essential consideration in your strategic thinking.
The good news for you is that weaving IT planning, budgeting, and innovation into your strategic planning might be a bit easier than for those C-suiters who face the proverbial trouble of turning the large battleship. What you lack in business size and resources, you can make up for in your nimbleness and flexibility. You should be incorporating your IT folks or IT MSP (managed service provider) into your organizational planning. They should be offering you reliable roadmaps to get your IT to function as a solid platform for your business growth and success.