Will you Shine or Fade?

As AI and digital transformation disrupt industries, CIOs face their greatest challenge yet: to adapt, lead innovation, drive strategy, and fuel organizational growth

“When I started my career as IT head, our main job was simply to keep systems running smoothly. But today, technical and operational excellence is just the baseline. For IT leaders to make a true impact, they must align IT with business strategy and drive continuous innovation. Without that focus, a CIO risks falling short of the organization’s expectations and, like the dinosaurs, eventually fading into irrelevance,” said a senior CIO from a private sector bank during an informal conversation at one of our recent meetings.

There’s no doubt about it: tech plays a key role in making or breaking businesses today. This has put CIOs in the spotlight, with more people recognizing how they shape business results. CIOs and CTOs now do much more than just manage IT systems. They’ve become strategic leaders who create new business chances, make user experiences better, and find ways to strengthen revenue. We can see this change clearly.

Tech is shaking up old industries. Online shops like Amazon and Flipkart have changed how we buy things. Now, people in cities and villages can get what they need with a simple click. Companies like Reliance JioMart are helping small corner stores go digital so they can keep up with the changing market. In entertainment, streaming services are taking over from cable TV. Factories are getting smarter and more connected. Banks are also going digital, using AI to serve customers better, work more, and make smarter choices.

However, the challenge is: Many of today’s CIOs come from traditional enterprise backgrounds, and when organizations expect them to spearhead initiatives that fall outside their core expertise, they often face significant challenges. If they are unable to quickly adapt and deliver on these evolving demands, it can jeopardize their role and, in extreme cases, lead to their exit from the organization.

While some CIOs have embraced this change and now enjoy its benefits, others stick to old ways—hoping for a quick fix or fighting the need to adapt. In a time when AI and robotics speed up progress, standing still is not an option. CIOs must grow or risk falling behind a new group of leaders who take up new tech and lead the push for digital change.

Will CIOs change, or will they become obsolete? The choice is theirs.

What’s changing?

Traditionally, the CIO was accountable for looking after internal IT systems: Responsible for IT infrastructure, hardware, software, and networking. However, in the last decade, the role of the CIO has expanded. CIOs must now manage operational activities and strategic direction as their core expectations grow; they are encouraged to drive innovation while heading and executing digital initiatives within business outcomes. The massive scale of AI deployment has undoubtedly catapulted this transformation forward, expecting the CIOs to lead smart transformations—technology across tangible business outcomes.

In 2023, many CIOs and other C-suite leaders focused extensively on the infrastructure needed to drive AI implementations. However, in 2024, they began to realize what can be realistically achieved through generative AI, as well as the resources required to do so, by analyzing various potential use cases and evaluating the ROI those use cases might offer.

Clearly, for CIOs, there is a lot on their plate now. With every organization now operating as a tech-driven enterprise, whether they explicitly acknowledge it or not, CIOs must not only be skilled data specialists to drive organizational decision-making and ensure internal IT systems are compliant and risk-free but they are also expected to focus on broader leadership capabilities.

For CIOs, adapting to this reality means expanding their skill sets and ensuring they are equipped to drive change, not just for today but for the future as well. “Organizations are becoming much more complex than they were earlier,” believes Dheeraj Sinha, Executive Vice President and Global CIO at Sun Pharma, India’s leading pharmaceutical company. “The size, scale, complexity of operations, and the continuous demand for new technology—functionalities, analytics, data lakes, Generative AI—will continue to evolve.”

Reflecting these changes, technology influence will continue to grow across almost all industries. This is just the beginning as AI and analytics continue to speed transformation in unprecedented ways, with companies and their CEOs expecting more focus from CIOs on revenue generation and business growth.

These trends indicate that technology is indeed moving people beyond industries and that this is only the beginning. AI and analytics are changing the pace of transformation at unprecedented speed, and companies and CEOs keep expecting more from their CIOs concerning revenue generation and business growth.

The CIO of the past was primarily a custodian of IT infrastructure. Today, however, CIOs are strategic partners integral to the business’s success. This transformation is emphasized by Vinod Sivararaman, Chief Digital and Information Officer at Essar, a multinational conglomerate. “The pace of business cycles has gone exponentially up,” he notes. “You can’t be a CIO without a basic attraction to the underlying technology that makes things run.”

The skills and strategies needed to shine

Technology has moved so fast that the skillset required of modern CIOs has expanded way beyond technical expertise. Today’s CIOs need to be strategic and business-oriented to play their role effectively. An IBM study confirms this shift, saying CIOs are being asked to reinvent their organizations – not just in IT but across the whole enterprise.

A CIO readiness survey conducted by CIO&Leader among India’s top IT leaders offers valuable insights into the diverse skills needed to be a successful CIO.

The survey reveals that Strategic and Business Acumen are the top traits required to be a successful CIO today, with 59.48% of respondents ranking it as their highest priority and assigning it a score of 5.16. This underscores the importance of aligning IT strategy with business goals and driving enterprise-wide innovation. 

Additionally, Technical & Change Management Expertise (3.25) and People Management & Communication Skills (3.58) are also crucial for executing and sustaining transformation initiatives, highlighting the need for CIOs to effectively manage teams and navigate rapid technological changes.

Other key skills include Budgeting & Financial Management Knowledge (3.37) and Negotiation & Problem-Solving Skills (2.84) which give CIOs the tools to make good financial decisions and solve complex problems. Collaboration & Emotional Intelligence (2.81) is a key enabler for teamwork and building relationships across the organization.

These findings show that a modern CIO’s success is about having a rounded skillset where all the skills work together. Strategic leadership, technical expertise, and interpersonal skills collectively make a CIO a transformational leader in today’s business. Let’s look at the strategies and approaches that help CIOs succeed in this multi-dimensional role.

Future savvy: think beyond operations:

Embracing change does not mean that CIOs must abandon their operational responsibilities, but according to industry experts, their mindset must evolve. “A CIO can’t just focus on daily operations anymore; they need to think beyond that—from a business perspective, from an ROI perspective. They must plan for the future, anticipate technology trends, and think about how technology will enable the business three years down the line,” says Dr. Kamal Karnatak, CIO of RJCorp. 

“A CIO must also be an evangelist, visualizing potential technologies like generative AI, even if nobody is asking about them today.”

Understand IT-OT convergence: 

As industries move toward full digitization, CIOs must be proficient in integrating operational technology (OT) with information technology (IT). This convergence is critical for optimizing efficiency, reducing errors, and ensuring seamless operations across systems. CIOs need to bridge these two areas effectively to create value for the business.

“Everyone is moving toward digitalisation,” says Chitti Babu, Group CIO at Aurobindo Pharma. “Every piece of equipment—from the pharmaceutical shop floor to the ERP suite and applications—needs to be digitized and integrated.”

In sectors like pharmaceuticals, the challenge is amplified by stringent regulations and the need for domain-specific expertise. Integrating OT with IT, known as IT-OT convergence, is essential for enhancing operations, but it comes with its own set of difficulties. 

“We need to minimize human intervention in pharma,” Babu explains. “Wherever human intervention is involved, mistakes are inevitable, and those mistakes can be costly.”

Practical Implementation of AI: Bridging the Theory-Practice Gap

CIO&Leader’s CIO Readiness Survey, based on insights from 300 of India’s top IT leaders and CIOs, provides a revealing snapshot of their self-assessed AI/ML knowledge. While 54.3% rate themselves as intermediate, a notable 33.3% still classify as beginners, exposing a gap in foundational expertise among senior technology leaders. Alarmingly, only 12.3% identify as advanced or expert, underscoring the limited high-level proficiency in this critical area. While many CIOs have a theoretical understanding of AI/ML, substantial room exists for growth in practical skills and strategic application. 

This highlights the need for focused upskilling and leadership training to better equip CIOs to drive AI/ML initiatives and lead innovation effectively.

Bridging this expertise gap requires more than just theoretical knowledge—it demands leadership, collaboration, and execution-focused strategies to translate AI ambitions into real business value. As Dr. Kamal Karnatak, CIO of RJCorp, aptly notes, While everyone gels with the theory behind AI and digital transformation, few know how to apply it effectively in the real world.” 

Conversations often gravitate toward ideas, but leaders frequently struggle with identifying the first steps toward implementation. While tools like Google and ChatGPT can provide information, they lack the practical experience necessary to deliver tangible outcomes.

The Path to Practical AI Implementation: 

To make AI initiatives successful, CIOs must align IT strategies with broader business objectives:

  • Collaboration with C-suite executives: Co-create solutions that directly address organizational priorities and deliver measurable value across departments.
  • Clear IT roadmaps: Present strategies linking technology investments to outcomes such as cost optimization, revenue growth, and improved customer experiences.
  • Balanced Scorecards: Use these tools to measure the alignment between IT initiatives and business goals.

According to the experts, a key obstacle to AI adoption is poor data quality. Without clean, accurate, and structured data, AI systems cannot deliver the desired results. As Rajneesh Garg, CIO and Senior Vice President at AllCargo Logistics, points out, “AI is a key focus, but in India, talent readiness remains a significant hurdle. Only about 20% of organizations are truly prepared for AI adoption.”

This data reinforces the need for Indian enterprises to address talent readiness, data management, and strategic alignment to ensure AI becomes a driver of transformative business outcomes. By closing the theory-practice gap, CIOs can lead their organizations into a future defined by AI-driven innovation.

Driving Change Management

The challenge for CIOs isn’t purely technical—it’s about leading people through uncertainty and resistance to change. When robotic process automation (RPA) emerged as a tool for business success, many CIOs struggled to convince teams of its benefits. Employees often perceived automation as a threat to their jobs, rather than as a productivity-enhancing tool.

This resistance stems from a limited understanding of how technology is applied effectively within business contexts. While technology can be efficient, its real value lies in its translation into enterprise solutions—a process that requires active involvement from stakeholders.

Experts emphasize the importance of aligning technology with refined processes. Applying technology to inefficient workflows can yield poor outcomes. India’s enterprises, eager to adopt AI, Industry 4.0, and automation, often face roadblocks. Many initiatives stall at the proof-of-concept stage due to a shortage of skilled professionals and a lack of clarity on business value.

Dr. Kamal Karnatak points out, “The use case must bring business value—ROI is essential. Creating a solid business case, addressing implementation challenges, and identifying the right use case are areas where CIOs often falter.”

Beyond strategy, CIOs face the challenge of convincing boards and end-users of the value of technological initiatives. Without strong business cases, even seasoned CIOs struggle to secure buy-in. Dr. Karnatak adds, “Change management is a skill that cannot be learned from Google or ChatGPT. It’s something every CIO must master.”

Mastering soft skills

In today’s fast-evolving business environment, CIOs must excel not only in technical expertise but also in leadership and soft skills. These qualities have become just as crucial as their knowledge of IT infrastructure, as CIOs increasingly transition from technical roles to becoming key decision-makers in the boardroom. This shift has made soft skills—such as leadership, communication, and critical thinking—just as crucial as technical expertise.

“Beyond technical know-how, soft skills, and leadership abilities are becoming indispensable for CIOs and IT leaders stepping into executive roles,” says Vijay. “As they transition from behind-the-desk roles to sitting in the boardroom, they need to become more communicative, engaging, and aligned with the broader business vision.”

Seema Gaur, CIO at Indian Farmers Fertiliser Cooperative Limited (IFFCO), highlights the growing expectation for CIOs to understand the business side of operations: “You have to step into the shoes of the business, understand their requirements in detail. It’s not about doing things for the sake of technology. You need to know how technology serves the business and adds value.”

Vinod Sivararaman emphasizes the peer pressure CIOs face in adopting emerging technologies and the importance of a strategic approach: “Emerging technologies are at the top of the hype cycle. There is naturally peer pressure in terms of wanting to be the first to adopt these technologies. As a team, you need to help your board understand which areas are maturing and where we have an opportunity to implement technology that will make a real difference.”

This shift in CIO responsibilities is evident in the findings of the 2024 State of the CIO survey, which reveals that CIOs often struggle to balance innovation with operations—a challenge that three-quarters of respondents find difficult. Without structured leadership development programs, many organizations are facing a leadership gap, leaving them without the expertise needed to manage this balance effectively.

This highlights the need for CIOs to not only focus on their technical acumen but also develop the soft skills necessary to guide their organizations through the complexities of digital transformation and into the future.

Develop strong financial acumen: 

According to industry experts, in today’s business climate, strong financial acumen is as key to a CIO as technical acumen. Core competencies must include ROI analysis, budgeting, and cost management knowledge to ensure that the IT investment delivers directly to the organization’s bottom line. Collaboration with CFOs and their finance teams enables CIOs to align IT initiatives with financial priorities, build a shared framework for evaluating digital investments, and help bridge the financial and IT cultures.

However, research by Gartner reveals that only 30% of the relationships between CFOs and CIOs stand as strong digital partnerships, making them unable to outperform peers in best-in-class financial management practices tailored to digital transformation.

This calls for CIOs to define metrics that would measure the cost savings, revenue growth, and operational efficiencies of technology solutions. Leveraging real-time financial tools and dashboards facilitates proactive decision-making, thus ensuring that technology strategies become cost-effective and results-driven. In addition, applying metrics beyond traditional financial measures—such as engagement or digital participation by users—can effectively showcase the indirect benefits of digital initiatives, which are otherwise difficult to quantify.

Such collaboration between CFO and CIO is crucial to achieve these. The organization is 29% more likely to involve finance early in the technology roadmapping, allowing shared expectations on how IT can advance enterprise strategies and impact financial outcomes. 

However, with this alignment, a CIO would position IT as a strategic enabler of business success and drive digital innovation.

Mentor and ready the next-gen talent: 

Mentor and ready the next-gen talent: While AI and other emerging technologies dominate the agenda, CIOs have a two-fold task – adopting these technologies and developing a talent pipeline that guarantees sustainable growth. The success of a leader depends on the integrity and the power of the team. Many seasoned CIOs with years of professional experience on traditional paths face a steep learning curve when they have to learn new skills. This fact emphasizes the need to hire people who not only match their competence but also offer new visions and superior skills.

Rajneesh Garg succinctly points to a major problem: “The talent’s readiness (of the) in India is yet another bottleneck, as only 20% of the organizations are AI-adoption-compliant, which assigns the task to CIOs of their employees to study these subjects, from scratch to new duties.”

The so-much-talked-about availability of X—technical knowledge along with expertise in strategy is a herculean task for the CIO because one must choose between these two, and the trick is knowing where to get both of these skills. Vijay Sivaram, CEO, captures the soul of this challenge: “What you have done here will not take you there. The CIOs need to make themselves into an intelligent and exceeding chamber of skills/abilities by constantly upgrading themselves, learning things, developing their faculties, and being connected.” 

While being a successful CIO today requires internship knowledge in software development, peer-reviewed advanced skills, and the ability to motivate the team will be scored. The role of the CIO has evolved beyond managing IT systems to driving organizational strategy. 

“Being social and engaging isn’t just about attending events; it’s about fostering genuine collaboration and listening to your teams,” Sivaram explains. This shift requires CIOs to adopt a more inclusive, people-centric leadership style, where mentorship and empowerment take precedence.

Shijo Joseph, CIO of East West Seeds, emphasizes the importance of hands-on mentorship: “We link skill development to real-world assignments and clearly define expectations. By forming innovation teams, we foster an environment where ideas are challenged, explored, and implemented. This not only nurtures talent but also cultivates a culture of experimentation.”

Succession Planning:
 

A succession plan involves not just the replacement of an individual but an assurance of the endurance and the survival of the organization. A well-formulated strategy reduces the impact of uncertainties, integrates the new leadership style within teams, and nurtures transformational practices within a business culture. Still, however,” says Sivaram, succession is understood as something that comes up last. “If there are no deliberate development schemes in place, there is a danger of escaping the whole leadership in times of changes.”

The success of today’s CIOs lies in their ability to embrace the future of IT while overcoming resistance to change. The best CIOs combine a strong focus on technology with a thoughtful approach to developing their teams. Future-ready organizations will be led by CIOs who value both people and technology, build high-performing teams, listen well, and align IT strategies with business goals. This balance ensures technology drives progress while empowering the workforce to deliver lasting impact.

(with inputs from Jatinder Singh)

Share on