Fortune 500 C-Suite Challenges
Challenges faced by CIO/CTOs of Fortune 500 companies are cyber attacks and security breaches, new data privacy regulations, and app explosion. Challenges for CEOs are digital disruptors, underinvestment, and lack of specialized workers to handle new technologies.
Challenges faced by Fortune 500 CIO/CTO/CEOs today
CIO/CTO DIGITAL TRANSFORMATION CHALLENGES
1) Cyber Attacks, Security and Accessibility
- According to Ray McKenzie from Red Beach Advisers, strategic protection of PII and data are the biggest challenges for CTOs and IT leaders.
- As cyber attacks are beginning to become more and more sophisticated, increase security to prevent and avoid data vulnerability are becoming big challenges which IT departments are currently facing.
- As an example, Equifax had its largest breach of data in 2017, and more than 143 million consumers were affected by it.
2) Changes in Data Privacy Regulations
- The European Union Global Data Privacy Regulation started its effect on May 25th, 2018, which brought many changes in the data privacy regulations sector.
- Even if a company is not located in the EU, once it does business in that area, it is expected to comply. Companies that do not adhere to the data regulation policy pay millions of dollars in fines.
- What changes: as examples, cookies, and individual IP are now considered personal protected information and it means increasing the level of security in cookies and individual IP.
3) App and Vendor Explosion
- The market for apps and software has grown by 3233% in the last seven years.
- Netskope noted that an average company has in media about 800 cloud apps.
- It brings real problems to the IT department’s protocols and business’ security because the number of threats also grows, becoming almost unmanageable.
CEO DIGITAL TRANSFORMATION CHALLENGES
1) Digital Disruptors
- About 40% of Fortune 500 companies will probably perish because of digital disruption, according to 2/3 of executives interviewed by Forbes in 2018.
- The always changing scenario of technology brings constant innovation in things like internet of Things, artificial intelligence, among others.
- IT departments must help CEOs to increase their attention on "new or upcoming businesses that could cause their business to fall under attack."
- According to a chief executive's article, being able to deal with digital disruptors has become a key determinant of success for these CEOs as leaders.
- As an example of a successful strategy, the Coldwell Banker CEO, Charlie Young, was the first national real estate company CEO that put its listings on the internet.
- Barbara Humpton, CEO of Siemens USA, is transitioning the company to a new era of distributed energy, and for this, she's using digital technologies as "big data for preventive maintenance, and blockchain."
2) Underinvestment and Underprioritizing:
- Even if 75% of companies say they own a digital strategy, only 16% of these believe they own the tools to implement it.
- A truly shocking statistic: among the companies that were in the Fortune 1000 ten years ago, 70% have already disappeared from the scene because they were unable to adapt to technology changes.
- Some companies understood they had to invest in digital transformation to remain competitive, and in 2019, companies in the US will invest a total of $13.6 million in the area.
- Ragu Gurumurthy also added that digital transformation requires more than investing in tech, but also reimagining entire business processes.
3) Lack of Skills/Training
- It's hard for companies to find qualified people to handle new technologies such as cybersecurity, data science, machine learning, and artificial intelligence.
- The cybersecurity talent gap is already an industry crisis.
- By 2021, there will be around 3.5 million unfilled positions in the industry.
- A way out: CEO's must partner with universities and other science/tech institutes to fill these skills gaps.
- A way out 2: women make only 14% of the technology market in the US, so CEOs must encourage women applicants by creating specific training programs that focus on filling the job gaps.