Tech leaders are no longer just the enablers of innovation; they are now key players in driving real business value. As companies seek to create tangible outcomes from AI, generative AI, and other emerging technologies, the role of CIOs, CTOs, and CDIOs has expanded. Today, tech leaders must adopt a proactive approach, shifting from merely managing technology to actively shaping new business models and driving growth.
According to McKinsey, nearly 40% of senior executives believe their businesses will generate new revenue from data-, AI-, and analytics-driven initiatives over the next five years—more than any other business category. This is a powerful shift, but it requires tech leaders to fundamentally change their mindset.
Shifting from Tech Enablers to Business Builders
For years, tech leaders have played a supportive role, managing systems and ensuring smooth operations. Now, they’re expected to spearhead the development of new business models, services, and revenue streams. This is a big leap.
McKinsey shared a compelling example of a European materials company that turned its internal operational expertise into a software-as-a-service (SaaS) platform for other businesses. This move allowed the company to monetize its existing capabilities outside its core business, creating a new source of revenue.
- Key insight: Tech leaders need to transition from supporting the business to building the business.
- Example: Transforming internal operations into marketable services like SaaS solutions opens new revenue streams.
The challenge? This requires a shift in mindset, where tech officers stop thinking about what’s happening within their organizations and start focusing on market needs and business outcomes.
Building Teams with Product-Led Capabilities
To succeed in this new role, tech leaders need more than just a strong technical team. They need a team that understands customers. It’s not enough to just build technology in today's outgrown tech trends—you need to develop products that solve real customer problems, scale quickly, and deliver value.
McKinsey points out that tech teams need to act like mini startups, deeply focused on customer needs and product ownership.
- Key Skills: Building product-focused teams that can iterate quickly and own solutions from inception to market.
- Mindset Shift: Tech leaders must pivot from managing internal IT teams to leading product development teams with a deep external orientation.
What does this look like in practice? It’s about creating a customer-first mindset, where every tech solution is designed with the end-user in mind, ensuring a tighter feedback loop between development and market needs.
From Cybersecurity to Digital Trust
We’ve all heard it: Cybersecurity is a top priority for any tech-driven business. But as technology becomes more embedded in every facet of operations, the risks become more pronounced.
According to McKinsey, cybercrime is projected to cost organizations a staggering $10.5 trillion by 2025. With the stakes this high, tech leaders can no longer rely on reactive strategies to safeguard their organizations. Instead, they must shift from simply defending their IT infrastructure to building digital trust with customers and stakeholders.
As consumers become increasingly conscious of how their data is handled, earning and maintaining their trust has become vital to securing long-term customer loyalty.
- Example: Nearly 50% of consumers would consider switching brands if they felt a company’s data practices were unclear or insecure.
This is no longer about checking boxes for compliance; it’s about ensuring that customers feel confident in the way their data is handled and protected. Tech leaders need to lead the charge in establishing transparent and secure data practices.
Safeguarding Business Continuity
As businesses become more reliant on technology, the risks to business continuity grow. Whether it’s downtime due to a tech failure or a cyberattack, the fallout can be devastating. McKinsey estimates that downtime costs Global 2000 companies $400 billion annually, and that number is only growing. For tech leaders, ensuring resiliency is just as important as driving innovation.
- Key Insight: Downtime isn’t just an IT issue—it’s a business issue that impacts the bottom line.
- Solution: investing in disaster recovery, automated failsafes, and real-time monitoring systems to safeguard operations.
Tech leaders must take an end-to-end approach to risk management, anticipating potential points of failure and creating robust backup systems to ensure business continuity in the face of disruption.
Integrating Tech into Core Business Functions
The days of tech existing in silos are over. Today, technology is integral to every part of the business, from customer experience to operations. McKinsey suggests that companies can unlock huge productivity gains—up to 60% in some cases—by integrating AI and automation into their operations.
But this integration can only happen if tech leaders take on broader roles within the organization, collaborating closely with business units to ensure that tech investments deliver real, measurable value.
- Opportunity: Automation can lead to massive gains in supply chain productivity and R&D innovation.
- Example: At some companies, CIOs are working closely with COOs to streamline operations and drive efficiencies through AI-powered tools.
By stepping into these broader leadership roles, tech officers can ensure that technology not only supports but also drives business success.
Tech Leaders at the Center of Value Creation
It’s clear that the role of tech leaders is evolving—and fast. Mckinsey: "This shift is about more than just adopting new technologies. It’s about leading organizations through a period of unprecedented technological change, where the lines between tech and business are increasingly blurred."
The most successful tech leaders are the ones who embrace this shift, moving from a focus on systems and infrastructure to a focus on creating value. They’re building teams that act like product startups, creating new revenue streams, and ensuring that their organizations are resilient in the face of disruption. Most importantly, they’re taking ownership of their role as value creators, not just tech enablers.
In the end, the opportunity is huge—if tech leaders are ready to step up and seize it. Now, more than ever, those who can leverage technology for real-world value are shaping the future of business.
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