As of 2022, 60% of corporate data resides in the cloud, indicating increased cloud adoption. Cloud costs are a concern, with the average company spending 80% of its IT-hosting budget on cloud services. To manage costs, leaders should consider hybrid/multi-cloud strategies, prioritize data hygiene, invest in cloud management, and embrace AI/ML automation.
Technical debt affects businesses of all sizes, accumulating when quick IT solutions are chosen over sustainable ones. It leads to increased costs, reduced agility, and lower morale. CIOs can mitigate it by prioritizing, allocating time for refactoring, and establishing robust coding standards. Managing technical debt strategically increases business agility and competitiveness.
Feeling lonely, at times, can be considered a positive reaction – a healthy aversive emotion that motivates us to strengthen our social connections.They find enjoyment in their own company, while still maintaining social relationships they can tap into when they feel the need to connect.
The growing acceptance and momentum of AI have led to an increasing focus on responsible AI, driven in part by regulation. Factors such as mapping trust domains to generative AI, fairness, transparency, and explainability are crucial. While responsible AI adoption is increasing, companies need to prioritize it to mitigate risks and drive business value.
Indeed, our collaborative board research with BCG, Heidrick & Struggles and INSEAD has identified significant challenges in long-term strategic planning. For example, while directors generally recognise trends and potential shifts in areas like sustainability, only 10 percent believe it will impact medium- to long-term financial results
LastPass recently thwarted a deepfake audio impersonation attempt of their CEO, highlighting the growing threat of deepfake technology. CIOs and security leaders should prioritize education, culture, and technology to defend against deepfake threats. Vigilant verification and training are crucial, as deepfakes pose risks to both individuals and organizations, necessitating a multifaceted defense strategy.
Artificial intelligence has both identified and caused bias in healthcare. Technical errors and human decisions contribute to AI bias, affecting care decisions and drug development. To mitigate bias, diverse stakeholders should validate algorithms, foster transparency, and monitor for bias and performance disparities. Organizations must proactively correct biases and maintain ethical AI use.
An INSEAD survey of 1,200 alumni from Europe, Asia, and North America reveals that corporate decision-makers and employees are embracing generative AI. 90% see gen AI as an efficiency booster, but a major concern is its potential misuse. Most believe it will benefit employees more than top leaders. The survey also gives insight into AGI development timelines and regional attitudes towards AI.
Public-private partnerships (PPPs) are essential for addressing global challenges. These collaborations leverage complementary competencies, create value, and tackle complex problems. Successful partnerships, like the 17-year alliance between dsm-firmenich and the World Food Programme, require long-term commitment, strategic alignment, and trust. PPPs are crucial for innovatively addressing global issues.
In 2024, application modernization ranks among the top IT investment priorities. The complexity of modernization programs, characterized by evolving technology and a diverse IT landscape, poses significant risks. CIOs must ensure strategic alignment, build robust business cases, learn from past experiences, and prioritize talent reskilling to maximize value and minimize risk.
Many organizations face challenges with legacy systems, causing cost control issues and hampering agility. To address this, experts recommend meticulous assessment of current technology, gradual modernization, and alignment of IT with business goals. Additionally, leveraging AI and machine learning can drive efficiencies and improve customer and employee experiences. This approach requires strategic investments and collaboration for successful implementation.
The concept of retirement has evolved into a longer, active phase of life. Four psychological mindsets associated with this transition have been identified: Switch, Transcendence, Regret, and False Start. Organizations must consider supporting and celebrating retirees, as well as providing guidance and coaching. Taking these steps can empower retirees to embrace a constructive future.
Leaders throughout history have fallen victim to hubris, an exaggerated self-belief leading to reckless and immoral actions. Unlike narcissism, hubris is a temporary condition specific to leadership roles, resulting in unbounded, toxic behavior. To combat hubris, leaders must sharpen self-understanding, unmask blind spots through feedback, lean into humor and irony, and lead with humility.
CTOs must become adept storytellers as technology grows more complex. Metaphors, enthusiasm, and humility play crucial roles. Understanding stakeholder needs and enhancing storytelling skills are key. CTOs must learn from mentors and external resources, emphasizing personal interactions and anecdotes over dry technical facts. Communication must be relatable and tailored to individual stakeholders.
