CIOs must balance innovation with operational efficiency as constrained budgets, legacy systems and fragmented workflows place growing pressure on technology investment, says Richard Farrell, CIO, Netcall.
Across industries, CIOs are being asked to deliver two outcomes that often feel at odds: drive innovation while improving operational efficiency.
On paper, it sounds reasonable. However, in reality, it is a constant balancing act.
Most organisations are operating in a low-growth environment. Productivity gains are hard-won, budgets are under scrutiny and every investment needs to prove its value. Technology is expected to unlock progress, yet the same function is also under pressure to reduce cost.
Part of the challenge lies in how much of that budget is already committed. The numbers make this clear. Multiple studies suggest that between 55% and 75% of IT spend is tied up in maintaining existing systems and services. In other words, keeping the lights on, with only a small proportion invested in building new capabilities.
Even within that remaining share, priorities quickly compete. Security is essential. Compliance cannot wait. Core systems need ongoing support. By the time these are covered, the budget available for genuinely new initiatives can shrink to as little as 5% to 10%.
This is the reality facing today’s CIO.
Why inefficiency is the real barrier to innovation
With economic growth expected to remain modest and productivity still lagging in many sectors, organisations cannot rely on favourable market conditions to lift performance. Instead, technology leaders are being asked to unlock productivity from within.
One of the main reasons this remains difficult is often overlooked.
Operational inefficiencies continue to absorb time, budget and capacity. Manual processes, disconnected systems and fragmented workflows quietly limit what organisations can achieve.
They rarely receive the same attention as high-profile innovations such as AI or advanced analytics, yet they are often the hidden barrier preventing meaningful transformation.
The issue is not simply how much budget is available, but how much of it is being consumed by inefficient ways of working.
This is where the opportunity lies. By identifying and addressing inefficiencies in core operational processes, organisations can free up both resource and capacity. In doing so, they create the conditions needed to invest in innovation without requiring significant new funding.
To achieve this, the starting point is visibility. Mapping workflows end-to-end makes it possible to identify where time, effort and cost are being lost. Increasingly, organisations are using data-led tools to quantify these inefficiencies and build a clear case for change.
From there, attention turns to targeted improvement. Technologies such as orchestration, automation and low-code development platforms allow organisations to redesign workflows quickly and at scale.
Rather than large, disruptive programmes, the focus shifts to improving high-impact processes and delivering measurable gains in a matter of weeks.
From theory to reality: what this looks like in practice
This shift is already delivering measurable results. At IRIS Software Group, a focus on streamlining internal processes and reducing operational complexity helped create a blueprint for wider transformation.
Using low-code development and workflow automation, the organisation was able to digitise key business processes, improve operational visibility and reduce reliance on manual workflows. This created a more agile operating model, allowing teams to respond faster and scale more efficiently across the business.
At Wigan Council, technology played a central role in reimagining how public services were delivered in the face of rising demand and financial pressure.
By redesigning services around automation, digital workflows and better use of data, the council was able to improve efficiency while supporting broader transformation goals. The approach contributed to savings of around £170 million while helping services become more responsive and sustainable over the long term.
Newcastle City Council faced a familiar challenge. By modernising workflows and connecting previously disconnected processes, the council improved operational efficiency and reduced reliance on costly legacy technology.
The result included approximately £1.3 million in licence fee savings over five years alongside a more flexible foundation for future digital services.
Across other organisations, similar approaches are delivering hundreds of thousands in savings from reducing manual processing alongside multi-million-pound efficiencies from optimising legacy systems.
These are not isolated examples or large-scale transformation programmes. They are the result of focusing on specific processes, identifying inefficiencies and applying technology in a way that delivers fast, tangible outcomes.
This is where the shift is happening, in practical interventions that prove value early and build momentum over time.
Rethinking how technology is deployed
The challenge is not simply to adopt new technology, but to do so in a way that does not increase complexity.
There is a growing shift towards approaches that prioritise speed, flexibility and measurable outcomes. Organisations are looking for ways to deliver visible impact to the business, deploy solutions without long lead times and extend capabilities over time rather than committing to large upfront programmes.
This is changing how technology is applied.
Cloud-based platforms, modular architectures and interoperable tools are enabling organisations to work with existing systems rather than replacing them. Legacy environments become part of a connected ecosystem, not a barrier to change.
At the same time, technologies such as AI are being used in more practical ways. Virtual assistants, when implemented at a process level, can be introduced to handle high-volume enquiries in a matter of weeks, helping teams respond more quickly and consistently.
Process automation can remove repetitive administrative tasks, allowing skilled staff to focus on more complex and meaningful work.
These are not distant transformation goals; they are practical steps that reduce pressure on teams while improving the overall experience.
Building towards transformation
When these technologies are combined, the impact becomes even more significant.
Automation, AI and intelligent data processing can reshape entire workflows. What starts as a targeted improvement can evolve into a broader transformation without the disruption traditionally associated with large IT programmes.
This approach allows organisations to manage risk while still delivering progress. It also reflects the reality of constrained budgets and competing priorities.
Restoring balance
The role of the CIO is evolving.
It is no longer defined by systems or infrastructure, but by the ability to balance competing demands and deliver outcomes that matter.
The organisations making the most progress are focusing on practical improvements that deliver measurable results, then building on that momentum over time.
This is also changing how success is measured. Return on investment is no longer just about cost reduction within IT. Increasingly, it is about the value created across the organisation, from faster services and better experiences to more effective use of time and resources.
Ultimately, it is about balance. Freeing up capacity while improving outcomes. Delivering innovation without increasing complexity. Demonstrating value in ways the business can clearly see and measure. That is how the balancing act becomes a strategic advantage.
