How Tech Executives are Reshaping Company Growth and Strategy

In today’s rapidly evolving business landscape, technology has transcended from being a mere support function to becoming a pivotal element in driving growth and shaping corporate strategy. According to the latest findings from Deloitte’s CIO Program, the role of tech executives is undergoing a significant transformation as they move towards strategic leadership positions within organizations.

The Tech Exec Survey, which captured insights from over 600 senior technology leaders, indicates that approximately 80% of tech executives believe their responsibilities have broadened significantly, aligning closely with business objectives. This shift marks a profound change in how technology is integrated into the core of business strategy. Lou DiLorenzo Jr., leader of the Technology, AI, and Data Strategy Practice at Deloitte, highlighted that today's technology leaders must go beyond traditional management roles. They are increasingly seen as architects of competitive advantage, blending talent, data, and technology to simulate transformation and growth.

Technology as a Revenue Driver

Interestingly, when it comes to how tech functions are perceived within organizations, opinions diverge. Of the respondents, 52% view their tech departments as revenue generators, while 48% still regard them primarily as service centers. The perception varies notably between larger enterprises, where 66% view tech as a revenue engine, compared to less than half of mid-sized companies (those with revenues between $1B to $4.9B). This recognition of tech's potential as a growth driver affects leadership behaviors and priorities.

In companies that recognize tech as a growth engine, executives tend to focus more on initiatives aimed at expanding into new markets (35% vs. 29%) and enhancing customer loyalty (34% vs. 30%). Furthermore, leaders in these organizations are more likely to be involved in implementing innovative technologies, such as Generative AI, across the company (42% vs. 36%). Notably, tech executives in these environments are also more likely to report directly to the CEO, which is crucial for fostering accountability and business outcomes (49% vs. 46%).

CIOs on the Fast Track to CEO Roles

The survey also highlights a notable trend: an expanding number of Chief Information Officers (CIOs) are directly reporting to the CEO, with this figure rising to 65% from just 41% a decade ago. This change is reflective of a growing recognition of the CIO's integral role in guiding strategic business initiatives. Furthermore, a significant 67% of CIOs expressed aspirations to pursue a CEO position in the future, outpacing their counterparts such as Chief Technology Officers (CTOs) and Chief Data and Analytics Officers (CDAOs). This ambition is underscored by their proven leadership, management capabilities, and expertise in innovation and growth.

CIOs today are not only responsible for information technology but also for assembling various functional leaders, including CTOs and Chief Digital Officers. Within this expanded capacity, CIOs assert a clear understanding of their broadened responsibilities and are increasingly viewed by peers as well-suited for leadership roles outside the tech department. This shift speaks volumes about their evolving reputation in executive circles.

As technology continues to be interwoven into the fabric of business strategy, the importance of the CEO-CIO partnership grows. Anjali Shaikh, U.S. leader of Deloitte’s CIO and CDAO Programs, asserts that this alliance indicates a shift in mindset among CEOs who now view technology as an essential driver of competitive advantage, rather than just a support function.

Conclusion

As organizations continue to recognize the vital role technology plays in driving growth and innovation, the demand for capable tech leaders will only increase. The path for tech executives is becoming clearer, with many positioning themselves not just as facilitators but as architects of business transformation. This signals a new era where technology leaders are optimized for strategic input and success at the highest levels of corporate leadership.

Deloitte remains committed to understanding these shifts within the tech landscape and the implications for future business operations, pioneering insights that can help organizations navigate the evolving interplay between technology and business strategy.

For more information on the findings and methodologies of the Tech Exec Survey, visit Deloitte’s website.