A lack of skills — specifically in cloud computing, AI, and data analytics, restricts innovation potential as well. So do inefficient governance and bureaucracy, as lengthy approval chains and inflexible compliance requirements slow decision-making and impede progress on projects.
Gilcrest also lists the over-reliance on a few key individuals as an impediment. “When innovative projects depend on the enthusiasm and expertise of a small number of ‘champions,’ organizations risk losing momentum if those individuals leave or shift roles,” he says.
To overcome those multitude of issues, Gilcrest advises CIOs to “champion a cultural shift towards innovation, emphasizing that innovation is not synonymous with job loss.”
They should also “implement innovation incubators or cross-functional teams for experimentation, [which] can help build momentum and encourage a more entrepreneurial mindset.”
He advises CIOs to embrace continuous training of their IT teams; agile and DevOps practices to foster a fail-fast, learn-fast environment and cut bureaucratic red tape, thereby speeding the realization of innovative solutions; and internal multidisciplinary innovation councils that can help identify barriers to innovation and work collectively to remove them.
“Additionally, embracing ecosystems and partnerships can be transformative,” he says. “By collaborating with startups, technology vendors, or industry consortia, CIOs can leverage external innovation to overcome internal constraints and create new opportunities that might not be feasible within the organization alone.”
Golden predicts that current business conditions could help put an end to these issues, as more organizations and the workers themselves recognize that “standing still is falling behind.”
“With industry convergence happening and more things coming together — particularly AI and customers wanting [everything] faster, cheaper, and better — organizations know they have to adapt at a faster pace,” she says. “This will push organizations and IT to not fear disruption. With AI and generative AI, we’re seeing a democratization of access to innovation. That allows more and more people to be able to manipulate in a good way and to innovate. And that means it’s easier to change and therefore more people see it, it’s more human-centered, and people are more easily able to accept and adapt to change.”
6. An outdated view of CIO success
Experienced IT innovators and innovation consultants agree that CIOs who want to innovate must first prove they can run their day-to-day operations flawlessly. But some CIOs focus so much energy on building a well-oiled IT machine that they fail to devote enough attention to building up innovation capabilities within themselves and their teams.
“There is this group of CIOs who might be brilliant IT managers, who manage budget and time, and can run the machine. Then there’s the smaller group of CIOs who are able to manage change. They’re creative and empower their teams to ideate. They know how to partner with third parties. They’re willing to take risks and be courageous and try new things. And by communicating that and walking the walk, they inspire their people,” says Bernhard Schaffrik, principal analyst at research firm Forrester.
