Thomas Mehlkopf, General Manager and Head of Working Capital Management, SAP Taulia, says CIOs can not only help their companies navigate the challenges of the present but also position them for future success
It goes without saying that CIOs play a crucial role in guiding businesses through turbulent times.
And, as they have evolved from simply being IT leaders to central players in business strategy, their voices have become louder.
Combining their expertise in technology with strategic thinking, they can perhaps help others in the business see the longer term opportunity and, as well as weathering this storm, ensure they are better placed to manage the next one, and the one after that.
This moment we’re in, though volatile, presents a golden opportunity for CIOs to lead their organisations toward greater agility, efficiency and resilience – cementing and enhancing their own role in the process.
There are three core topics that CIOs should be prioritising:
1: Championing Investment in Technology to Drive Long-term Value
Planned technology investments can often be one of the first cuts made during turbulent times. Strong CIOs know the strategic value of technology, and fight tooth and nail to ensure that well-placed tech investments don’t get cancelled. A huge part of this for CIOs is understanding the importance of balancing immediate needs with long-term investments in technology. This is where the relationship with their CFO becomes key.
I’ve often argued that a big part of the CIO role is about ensuring that your board isn’t flying blind – something I believe is particularly important in periods like the one we find ourselves in now. Partnering closely with CFOs, CIOs can make the case for prioritising technology investments that have the potential to deliver significant returns over time – looking beyond the immediate market chaos and adopting a longer-term viewpoint.
Technology is so much more than a support function – it’s a critical enabler of business continuity, growth, and resilience. The ability to leverage advanced technologies such as artificial intelligence, automation, and cloud infrastructure offer businesses a competitive edge, allowing them to adapt more quickly to shifting market dynamics. CIOs that let investing in these technologies fall by the wayside will struggle in the future when markets look more stable and outlooks rosier.
CIOs must take control of driving these investments by highlighting how technology can deliver measurable value, from improving customer experiences to enhancing operational efficiency, ultimately providing a long-term competitive advantage.
2: Agility through simplicity
During challenging periods experienced CIOs know that simplicity is key. It is much harder to be agile when the systems that support the business are too interdependent or in fact the opposite, too siloed. At SAP we do this by focusing on what we call ‘clean core’. Essentially this means keeping the core of the system free of customisations or adaptations so that you can add or remove applications quickly and easily, without impacting the wider IT ecosystem. By using a standard set of functionalities and extensions you can keep the system flexible and adjust rapidly when required. It also means lower costs for upgrades and application customisation.
CIOs should also be looking for opportunities to improve the efficiency of those existing vital systems. For example, automating manual processes or transitioning to more modern, integrated platforms can result in cost savings while also improving agility.
Perhaps the most important benefit a good CIO gives their business is the insight that facilitates informed agility and this is where the data, and the access to that data, is critical. Modern AI tools can help you move quickly from insight to value but they are dependent on the quality and volume of the data available. The fewer siloes, the greater the access to data, the more valuable the insights.
By simplifying and streamlining systems, CIOs help businesses reduce complexity, minimise risk and focus on the areas that really drive growth and innovation. This approach allows for faster decision-making, improved operational performance and a more nimble response to external challenges – all of which are critical right now.
3: Streamlining IT Systems to Improve Cash Flow and Enable Growth
The final vital role CIOs need to consider is how they free up capital by streamlining IT systems and costs across the organisation. The fight to invest capital in new technology is considerably easier for CIOs that have managed to cut costs and reduce inefficiency elsewhere.
In times of financial uncertainty, every pound, dollar or euro counts, and CIOs must, now more than ever before, play a central role in ensuring that IT budgets are being used efficiently. Streamlining IT systems can involve various initiatives, from decommissioning legacy systems to migrating to more cost-effective cloud-based solutions. By eliminating outdated or underperforming systems, CIOs help their organisation reduce maintenance costs and increase operational efficiency. Additionally, modernising infrastructure and leveraging cloud services can enable businesses to scale more effectively, only paying for the resources they need when they need them.
Supporting programs that free up cash, for example working capital initiatives supported by technology, to pay for other strategic IT initiatives can be a smart way for the CIO to find a compelling Business Case that also gets support from the CFO.
With more capital available for strategic investments, companies can focus on growth opportunities, whether through expanding into new markets, launching new products, or enhancing customer experiences. In a time of uncertainty, having the financial flexibility to invest in growth initiatives is crucial for long-term success.
The Golden Opportunity for CIOs
While the current economic landscape may feel chaotic and uncertain, CIOs have a unique opportunity to leverage this environment to their organisation’s, and their own, advantage. By making strategic investments in technology, protecting the core, and streamlining IT systems, CIOs can not only help their companies navigate the challenges of the present but also position them for future success. Having a central view on the business enabled by a holistic view on relevant business data that allows for scenario analysis and quick decision making is key. In times of uncertainty, CIOs have a golden opportunity to drive this change as a trusted advisor and strategic leader that provides the insights that are needed to steer the company and turn insights into value.
