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Need for modernization in corporate culture

Only a minority of German IT bosses think their company is already working in an agile manner, as Citrix found out in a recent survey.
E-3 Magazine
May 15 2019
Need for modernization in corporate culture
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This text has been automatically translated from German to English.

On the one hand, the reasons for this can be found in outdated infrastructure: 71 percent of those surveyed said that the infrastructure they found when they started their job made their work more difficult.

On the other hand, however, IT often does not receive sufficient support from corporate management. For example, 54 percent of CIOs would like to see more risk appetite when it comes to technological investments.

"Almost everyone wants to work agile today - but what does that actually mean? Of course, modern ways of working also require modern technology and different tools than 20 years ago.

But that is not the end of the story. Simply replacing the work equipment does not necessarily change the way people work. Companies that want to become truly agile must also start with their culture.

Old structures and rigid hierarchies that prevent innovation should be reconsidered and replaced with flatter hierarchies and structures that encourage creativity and development"

says Oliver Ebel, Area Vice President for Germany, Austria and Switzerland at Citrix.

Poor IT infrastructure reduces productivity

In Citrix's survey, 48 percent of CIOs say inadequate IT leads to limited growth. For 47 percent, this reduces a company's productivity. One in three IT managers also sees the future of their own company at risk because the technology does not function reliably.

This is likely to intensify in the future, as all processes throughout the company are becoming increasingly dependent on digital technology - even outside of IT, as specialist departments often also have to deal with digitization projects.

This is also reflected in the fact that the CIOs surveyed consider the Internet of Things (52 percent) and Industry 4.0 (43 percent) to be the most important technologies at present. In each case, these relate to the entire company and are not just taking place in the IT department, which often further complicates projects.

The various departments must therefore be involved in the planning process in order to make digitization projects a success.

Agility is more than technology

39 percent of the CIOs surveyed believe that the technology in their company works well in itself, but is not being used properly. Another problem that prevents modernization is lengthy and complex decision-making, as many as 21 percent of respondents complain.

A fifth of CIOs also had to perform so many operational tasks on a day-to-day basis that they were unable to do justice to their actual role. Although the vast majority of respondents (81 percent) say that IT is seen as a promoter of new business opportunities in their company, 64 percent also say that their department is perceived as a cost center within the company.

Nine out of ten CIOs surveyed still consider the term digital transformation to be relevant. Companies should take this into account, for example by creating special positions that deal with this development.

For example, 64 percent of companies had already employed a Chief Digital Officer who is responsible for planning and managing the digital transformation of a company or organization.

"The combination of technical and cultural transformation means an opportunity for CIOs to expand their own role and take a more strategic, shaping position.

The more IT influences the business success of companies, the more the CIO moves from being a technician to becoming a businessman. CIOs who succeed in making this connection clear to the management can also push through more budget for their department.

says Oliver Ebel of Citrix.

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