Why CIO’s Will Lead Digital Transformation

With the rapid changes in technology, Chief Information Officers or CIOs will lead digital transformation according to Raj Sabhlok, president of Zoho Corp. In his article written in InformationWeek, Sabhlok looks at how IT is the “strategic weapon” for many companies. CIOs are now making a big difference in companies through technological innovation as well. Sabhlok points to Netflix eliminating the use of salespeople as an excellent example of this innovation. “Cloud computing, automation and self-service are removing what had previously been ponderous yokes of legacy applications and infrastructure,” Sabhlok says. That is why CIOs and Information Technology departments are more important now more than ever.

By making everything self-service, Netflix can focus funds on marketing efforts to increase the number of subscribers at rates competitors are unable to match. Netflix is leading in growth because they have learned to value IT and its impact on industries. The streaming company is also able to bring in $1.5 million in revenue per person thanks to IT and the self-service model. According to Sabhlok, Netflix is primarily succeeding because they’ve changed the way they do business. Other companies like TaskRabbit and Airbnb are now starting to adopt this self-service model as well. Companies like The Wharehouse Group are looking to become invisible by “rebuilding the customer experience around technology.” New Zealand’s largest retailer will be able to keep up with competitors — Amazon and Alibaba — entering the market. This will help to make it easier for customers to get what they need at the click of a button.

Businesses that learn to adapt to the rapid changes in technology will be the ones who come out on top. Self-service technology has made Netflix a leader in its industry, and other companies like TaskRabbit and Airbnb have adapted as well. This advancement in technology has opened the door for other companies to do the same. It’s safe to say that CIOs are leading and will continue to drive the digital transformation of businesses. We can look for the success of IT to keep expanding over the next few years as well.

Chart Westcott is Co-Founder and COO at Ikarian Capital, LLC a long/short equity biotech focused investment adviser. Read more at http://chartwestcott.net.

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