CIO CIO

“We had created two-dimension mapping tables: source, target; so that the people would know, ‘Okay, if this is the source, how the data was coming, this is the target on the other side, and now how this has been converted,’” he says. Although Escorts Kubota is still early in its AI, ML, and automation journey, Kakkar acknowledges that the human element will play the most crucial role. Because people are often hardwired to the status quo, Kakkar says that any project rightfully involves changing the mindset of the people involved. “We need to do a little more homework, help them to visualize the technology, and how that can help them. And also how they could improve their business rather than just telling them, ‘This is the technology project they need to adopt,’” Kakkar says. source

Imagine that you’re a member of a cooperative that works with more than 2,100 suppliers to help you deliver your product to local and global customers. In this case, your product happens to be beet sugar used as an ingredient in your customers’ food and beverage, confectionery, and other businesses. Part of the ‘beet’ generation You’re a member of the Western Sugar Cooperative. A 100+-year-old, Denver, Colorado-based organization, the cooperative includes fourth- and fifth-generation beet growers, with sugar-producing facilities in all 50 US states. Today, America is the second largest grower of sugar beets behind Russia. According to the Institute of Agriculture and Natural Resources: “Of the current world production of more than 130 million metric tons of sugar, about 35% comes from sugar beet and 65% from sugar cane.  In the USA, about 50-55% of the domestic production of about 8.4 million metric tons derives from sugar beet.” Not all sweetness at first Because of an ever-increasing volume of supplier invoices and payments made to those suppliers, coupled with the cooperative’s legacy accounts payable (AP) solution, the cooperative was facing workload and processing challenges that could affect its business and that of its suppliers. Suppliers were often hand-delivering paper invoices to the cooperative’s local offices, which were processed and paid out manually with no centralized invoice management. The legacy solution did not have exception/error detection reporting capability, and there was no visibility into backlogs or operations across the facilities.  As a result, the work was extremely time-consuming, and the decentralized, manual processing opened the door to errors. That could lead to late and inaccurate payments, impacting suppliers’ ability to meet their obligations to their employees, suppliers, and the cooperative. Overcoming the challenges Cooperative leaders wanted an end-to-end, automated solution. It needed to handle a variety of tasks such as invoice capture, data extraction and validation, verifications workflow and approvals, exception and error handling, and reporting and analytics to boost the visibility, control, and predictability of the cooperative’s invoice management. Working with SAP, the cooperative picked SAP Ariba Central Invoice Management with its inbound process for SAP S/4HANA Cloud public edition to create just what was needed. With the SAP platform, Western Sugar has streamlined and accelerated the invoice management process, from invoice capture to payment.  “Centralizing accounts payable on the one SAP platform has made it possible to consolidate the payable process,” says Richard Caluori, Director of Corporate Controlling at Western Sugar Cooperative. “This capability enables our managers to track, manage, and pay invoices across different plants. This is a huge advantage.” Sweetening the solution with SAP The cooperative has been able to manage inbound invoices seamlessly, viewing those documents from different suppliers, across all channels and locations, with one simple work list. It has boosted visibility and control on the status of invoices to be tracked throughout the invoice management process so that nothing falls between the cracks. The Western Sugar/SAP solution has also helped the cooperative improve data security and privacy to ensure compliance with local and global data protection regulations. By automating the invoice task with artificial intelligence (AI), Western Sugar has been able to reduce costs and time related to manual data entry, paper-based processing, and error corrections. The cooperative has: Saved 33 hours of processing time each month  Realized 25% cost savings Increased operational efficiency, processing approximately 2,000 invoices each month Those improvements and others have helped reduce payment delays, enhance supplier relationships, and boost the job satisfaction of cooperative employees. “The SAP solution allows us to give back approximately four workdays per month to our accounts payable people to address more strategic activities,” says Tom Hanson, Accounts Payable Manager at Western Sugar Cooperative. Sweet recognition The improvements have also led to Western Sugar being recognized as an innovator and leader in its industry. Recently, the cooperative was named a finalist in the SAP Innovation Awards 2024. Learn more about Western Sugar’s success in its pitch deck.  source

This initiative aligns closely with Dubai’s ambitions to harness AI’s potential across various sectors, enhancing services, streamlining operations, and creating new economic opportunities. The investment is also anticipated to support Dubai’s digital economy, fostering the region’s job creation, upskilling, and innovation. Ruth Porat reaffirmed Google’s dedication to the region, aligning with Dubai’s ambitious vision for digital transformation. Since establishing its regional headquarters in Dubai in 2008, Google has overseen operations across the Middle East and North Africa, strengthening its presence and impact. Recently, Google launched the AI Opportunity Initiative, its largest AI-focused investment in MENA, intending to equip 500,000 individuals with AI skills over the next two years. This 15 million USD initiative is set to provide extensive training and resources, fostering greater accessibility to AI-driven opportunities and advancing efforts to democratize AI capabilities across the region. Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism, and Hamad Obaid Al Mansoori, Director General of Digital Dubai, attended the meeting. The presence of these key figures underscores the UAE’s commitment to integrating AI and digital technologies into its economic fabric, aligning national policy and international partnerships to create an interconnected digital ecosystem. source

As industries worldwide are transformed by the rapid rise of artificial intelligence (AI), the 18th edition of the IDC Middle East CIO Summit will set the stage for an exciting new chapter in business innovation. Taking place on February 19–20, 2025, at the Grand Hyatt Dubai, the summit’s theme, ‘Architecting an AI-Fueled Business,’ will explore how AI is reshaping industries and revolutionizing the future of business. Generative AI (GenAI) is accelerating change, and businesses must now decide: adapt to the AI-driven landscape or risk being left behind. According to IDC’s EMEA Emerging Tech Survey, 72% of organizations in the Middle East are either using AI or planning to adopt it, signaling an unprecedented wave of AI adoption in the region. From intelligent automation and AI-powered security to big data analytics and the convergence of AI with transformative technologies like 5G, cloud, and IoT, AI is driving a profound shift in how businesses operate and innovate. “We are witnessing an extraordinary moment in business history: AI is not just reshaping industries — it’s rewriting the rules of competition,” says Jyoti Lalchandani, IDC’s regional managing director for the Middle East, Türkiye, Africa, Central Asia, and India. “For organizations to thrive in this fast-evolving landscape, they must embed AI into their core strategies. Accordingly, the IDC Middle East CIO Summit 2025 has been designed to challenge and inspire IT and business leaders to build a resilient, AI-powered future.” source

As organizations continue their digital transformation (DX) journeys, the role of the CIO evolves. However, the metrics used to evaluate CIOs are hindering progress. As digital transformation becomes a critical driver of business success, many organizations still measure CIO performance based on traditional IT values rather than transformative outcomes. To drive change, a reworking of what defines CIO/IT success is needed, with a focus on strategic business goals, innovation, and market differentiation. The status of digital transformation Digital transformation is a complex, multiyear journey that involves not only adopting innovative technologies but also rethinking business processes, customer interactions, and revenue models. According to recent data from IDC’s CIO Sentiment Survey (Figure 1), only 38% of organizations have reached a high level of maturity in their digital transformation efforts (with only about 13% claiming full transformation). This data shows that a majority of companies — 62% — are still focused on short-term or functional goals rather than long-term strategic transformation. IDC’s CIO Sentiment Survey, July 2024, n = 395 The gap between digital transformation aspirations and outcomes is partly due to how CIOs and IT leaders are measured. While the CIO role has expanded significantly, the metrics used to evaluate their performance often remain tied to traditional IT values like cost management, operational efficiency, and system uptime. This creates a disconnect between the strategic role that CIOs are increasingly expected to play and how their success is measured. Traditional IT metrics: Still the norm For decades, IT departments have been viewed as cost centers, and CIOs have been measured primarily on their ability to maintain operational excellence. Common metrics include: Cost management: Reducing expenditures while maintaining performance Efficiency: Ensuring optimal processes with minimal waste Application effectiveness: Delivering reliable tools that meet user needs These metrics do not align with the goals of digital transformation, which are often focused on innovation, customer experience, and revenue growth. These metrics are for a “run the railroad,” traditional, back-office IT organization. The CIO is no longer the chief of “keeping the lights on.” Business is too dependent on technology as a key driver for both business value and differentiation. And yet, these types of metrics are the limpets of IT measurement — encrusted, intractable, and creating drag. CIO leadership metrics: Operational over strategic In IDC’s CIO Sentiment Survey (Figure 2) that asked about the top metrics used to evaluate CIO performance in 2024, a startling imbalance was revealed. Of the top seven metrics, only two — innovation and profit growth — are directly tied to digital transformation goals. The remaining five metrics, including uptime and availability, cost control, operational efficiency, compliance, and security, are deeply rooted in traditional IT priorities. Those operational metrics are table stakes for most IT departments at this point. IDC’s CIO Sentiment Survey, July 2024, n = 395 This continued focus on operational metrics reflects a broader organizational mindset that still pigeonholes IT as a support function rather than a strategic driver of innovation. It’s a case of “you get what you measure.” As long as CIOs are incentivized to focus on operational excellence, their digital transformation efforts will be deprioritized. Insights IDC’s CIO Sentiment Survey offers valuable insights into how organizations can better align CIO metrics with digital transformation objectives. Here are three key recommendations for CIOs to share with business management: CIO metrics should align with strategic business outcomes. To drive digital transformation, CIO measures must evolve beyond operational metrics to include strategic business outcomes. Organizations should introduce key performance indicators (KPIs) that measure CIO contributions to innovation, revenue growth, and market differentiation. For example, instead of measuring success solely by system uptime or cost reductions, CIOs should be evaluated on metrics like digital revenue growth, customer experience improvements, and market share expansion. The weight of transformation-focused metrics should be increased. Transformation-focused metrics, such as innovation, digital adoption, and customer experience improvements, should carry as much weight as operational metrics (e.g., uptime and cost control). This shift requires rethinking how to measure IT success. For example, a CIO’s performance evaluation should include progress on transformative digital initiatives, such as the implementation of AI-driven solutions, industry use cases, or the creation of new digital revenue streams. Collaborative initiatives should be established between IT and business units to boost transformation. One of the challenges of digital transformation is that it requires collaboration between IT and business units. Historically, this has been a problem, because IT was focused on keeping costs down (so, being perceived as “Dr. No”), while digital transformation requires a mindset of collaboration between the business and IT. To drive this collaboration, organizations must establish joint metrics that incentivize co-ownership of transformation efforts (mutual “skin in the game”). For example, IT and business leaders could be jointly measured on metrics such as the adoption rate of new digital platforms or improvements in customer satisfaction. This approach not only encourages cross-functional collaboration but also ensures that transformation efforts are aligned with broader business objectives. Conclusion: Recalibrate CIO metrics The metrics used to evaluate CIOs must evolve to reflect technology’s critical business role. The metrics must reflect this necessity. Where innovation and agility are key drivers of competitive advantage, traditional IT metrics that shaped IT for the past 50 years are insufficient. If you haven’t already aligned your CIO metrics to the new reality, you are late. And being late places your organization at a competitive disadvantage. Learn more about IDC’s research for technology leaders OR subscribe today to receive industry-leading research directly to your inbox. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the technology markets. IDC is a wholly owned subsidiary of International Data Group (IDG Inc.), the world’s leading tech media, data, and marketing services company. Recently voted Analyst Firm of the Year for the third consecutive time, IDC’s Technology Leader Solutions provide you with expert guidance backed by our industry-leading research and advisory services, robust leadership and development programs, and best-in-class benchmarking and sourcing intelligence data from

A successful IT modernization journey is about far more than just implementing a new technology into IT systems. Modernization is a complex process that requires the right strategy to be successful. Specifically, it requires technologies that align with each other, the environment they’re in, and intended business outcomes. Having the right modernization strategy and approach in place can move an organization forward and establish a competitive edge by increasing flexibility, efficiency, and potential. The modernization journey is about making the most of existing technology investments while adding to an environment to adapt for the future. This allows organizations to stay ahead of the game no matter what’s coming down the pike. To dig deeper into what those challenges are, Rocket Software and Forrester Consulting surveyed 309 IT decision-makers worldwide and asked them about their modernization journeys. The survey, IT Modernization Without Disruption, found several hurdles on the path toward the finish line but also found a common solution to overcome them in the form of expertise and effective solutions from a trusted partner. Having the experience of a modernization partner can fill any skills and technology gaps an organization may have, which will accelerate the pace of the journey. This will ultimately lead to improved efficiency from invested technologies, both old and new, for IT modernization without disruption. Let’s look at what the tallest hurdles are on the path toward IT modernization. IT teams fail at rewriting applications on the first try An important element of IT modernization is modernizing legacy applications to work more efficiently, sometimes in new environments. It is such a priority for organizations that, according to surveyed decision-makers, nearly one-fifth (18%) of modernization budgets are allocated to rewriting applications. The trouble is that application rewrite projects have a high failure rate. Just over half of IT decision-makers (51%) surveyed said they attempted at least six app re-write projects due to multiple failures, according to the survey. On top of this risk, IT teams still are strapped with a lack of specified skills when it comes to modernization. They must also face complex environments in addition to heightened security risks and concerns. There are several approaches that can mitigate the risks of full application rewrites, from modernizing in place, to building hybrid solutions, to replatforming workloads that are better suited for other environments. Critical to all these approaches is finding the right partners with the right expertise to help make the projects successful. Security risks can hold modernization back When modernizing IT infrastructure and applications, unforeseen issues such as security breaches and vulnerabilities are a major concern for organizations. In the survey, 41% of IT decision-makers pointed to concerns over security risks as the biggest obstacle on their journey. Because many IT teams are short on the required talent and skills needed to complete these projects, the concerns over these risks are heightened, according to 38% of respondents. One-third of respondents also cited complex integration strategies as a major barrier, while 30% said there are concerns over the ungoverned use of new technologies like AI and inadequate software platforms. Enterprises can appease these concerns by working closely with a trusted partner throughout the modernization journey. Security is broad and deep, and ensuring security for core transactional systems is complex, so partnering with a vendor that specializes in vulnerability analysis and has baked in governance and security for application and data migration is paramount. Modernization challenges can hinder productivity Modernization is a complex endeavor. When challenges arise, they have the potential to disrupt the day-to-day operations of a business. That disruption can create a drag on the overall productivity and efficiency of a business, which in turn can cause operating costs to steadily creep up.  According to the survey, almost half (44%) of decision-makers believe modernization obstacles have delayed their previously planned timelines, while a third of respondents stated these problems led to reduced productivity. These challenges can negatively impact a company’s ability to recruit talent, according to 38% of respondents, while 35% believe it impacts their ability to compete. These combined challenges led to an increase in operating costs, according to 40% of decision-makers. Enterprises can overcome these challenges by investing in strong partnerships that incorporate skills, solutions, and processes to get the job done correctly while mitigating any risks. The survey found that to solve these issues, roughly two-fifths of decision-makers invest in new technologies to drive innovation and partnerships, while almost half are upskilling and providing training services to employees focused on IT modernization.  The key to a successful IT modernization strategy is having a plan mapped out before embarking on this journey. If there are gaps in skills and solutions that could open and organization up to risks, it’s a good idea to consider an experienced partner who can fill those gaps for a successful modernization project. A trusted partner like Rocket Software can lead to modernization without disruption and fill the voids around skills, experience, and solutions to complete a successful IT modernization journey. Learn more about the modernization challenges facing organizations with the full report. source

Without some review of the AI-generated code, organizations may be exposed to lawsuits, he adds. “There’s a lot of work that’s going on behind the scenes there, getting beyond maybe just those individual snippets of code that may be borrowed,” he says. “Is that getting all borrowed from one source; are there multiple sources? You can maybe sense that there’s something going on there.” While human-written code can also infringe on copyright or violate open-source licenses, the risk with AI-generated code is related to the data the AI is trained on, says Ilia Badeev, head of data science at Trevolution Group, a travel technology company. There’s a good chance many AI agents are trained on code protected by IP rights. “This means the AI might spit out code that’s identical to proprietary code from its training data, which is a huge risk,” Badeev adds. “The same goes for open-source stuff. A lot of open-source programs are meant for non-commercial use only. When an AI generates code, it doesn’t know how that code will be used, so you might end up accidentally violating license terms.” source

Many of these entities operate on a large scale, managing significant data flows and complex information systems, which amplifies the demand for robust AI solutions. “GenAI-based models can solve a multitude of these large-scale yet disparate system-level problems,” said Neil Shah, VP of research and partner at Counterpoint Research. “The CIO’s role in these enterprises is among the toughest, as it involves issues of privacy, security, and criticality. Using the open-source Llama as a foundational model to build intelligent, automated systems with highly sensitive, locally trained data introduces a new level of complexity, compliance, governance, and engagement.” However, the benefits are expected to remain largely confined to the US, with limited effect on CIO decisions in other regions, particularly Europe, where stringent regulations mean that credibility alone may not be enough to secure trust, according to Priya Bhalla, practice director at Everest Group.  source