Transforming IT from cost center to catalyst

Until recently, technology was often seen as a mere expense rather than a catalyst for innovation and business growth. While this perception persists in many organizations, a shift is underway. Studies like Foundry’s 2024 State of the CIO report reveal a dramatic change in attitude. A striking 79% of surveyed CIOs now view their role as a collaborative partner in educating and guiding CEOs and boards.  

My experience aligns with this trend.  

Our IT evolution  

Having worked primarily in traditionally structured industries like oil and gas, government, education and finance, I’ve witnessed firsthand how technology was once considered a commodity, a cost center.  

In 2015, we attempted to introduce the concept of big data and its potential applications for the oil and gas industry. We envisioned harnessing this data through predictive models to gain valuable insights into various aspects of the industry. This included predicting political outcomes, such as potential votes on pipeline extensions, as well as operational issues like predicting the failure of downhole submersible pumps, which can be costly to repair. Additionally, we explored how predictive models could be used to identify the ideal profile for haul truck drivers, with the goal of reducing accidents and fatalities. 

In an industry where companies typically relied on third-party consultants to analyze their data, we believed our approach was a slam dunk. Unfortunately, we continued to be met with resistance…until a series of unfortunate events occurred: an economic downturn, a fatal accident, increased international competition from companies embracing technology and a devastating cyberattack. 

Since then, the perspective of IT in these sectors has been gradually evolving, particularly as these organizations embrace modernization and adapt to rapid technological advancements. 

However, two crucial misconceptions persist. Firstly, IT is often overlooked as a profession. We’re not just the people who fix your laptop. We possess a comprehensive view of organizational operations, from core business processes to strategic decision-making. Technology underpins every aspect of a business, and IT professionals have a deep understanding of these interconnected systems. This makes us invaluable strategic partners, a resource that needs to be utilized to the detriment of organizations.  

IT’s image problem?  

Secondly, the IT industry has contributed to its own image problem. The CIO’s role is traditionally focused on operations and security, while the CTO, a more recent position, drives innovation and development. Unfortunately, there’s a lingering perception that IT is a department of “no’s,” hindering rather than enabling progress. That’s why we’re often not invited to the table, and not included in strategic discussions. 

Yet, in our innovation-focused role, we are the architects of new business processes and ideas. I have worn both hats and when you’re both the gas and the brakes it becomes very difficult to stay on the edge of technology enablement and advancement. I think there is room for both roles; you need someone focused on operating/protecting and someone focused on building/growing. They are not mutually exclusive. It’s a “yes” and “how might we get that done together”. 

For instance, I developed a two-sided marketplace for a financial institution. I built it externally for $50,000 in just five weeks—from concept to market testing. This was in contrast to my CIO’s initial estimate of a year and $5 million, which is why I went outside the organization to get it done as both a solution and to prove a point. I believe we need to shift our mindset. Instead of dismissing the idea outright, my CIO should have responded with a ‘yes, and…’ approach, encouraging me to build it externally while providing guidance on integration and scalability. This is like offering gas and directions rather than slamming on the brakes. 

To address this issue, we must reevaluate our image. CIOs need to proactively educate themselves on emerging technologies and the front end, as the underlying infrastructure and back end has become largely commoditized. Instead of focusing solely on technology, they should prioritize understanding the business itself. To gain a seat at the executive table, CIOs must speak the language of business and, in some cases, possess a deeper understanding of the industry than their business counterparts. Above all, be curious! The short tenure of many CIOs and CTOs—often three to four years—can be attributed to their inability to drive digital transformation at the necessary pace or their role as scapegoats for a lack of accountability among other executives. 

It’s easy to blame IT just as it’s easy to blame the consultants. CIOs need to insist on executive accountability around the whole table. We’re all in it or we are not. As more companies recognize their tech-driven nature, we must emphasize our role as strategic partners. We are no longer simply a bank providing financial services; we’re a tech company delivering those services (financial services, to be sure) to our customers through technology. Despite this evolution, resistance to viewing technology as anything more than a cost center persists at the highest levels of organizations.  

This resistance is a significant hurdle. We must overcome it to fully realize technology’s potential as a driver of business growth and innovation.  

AI as a cultural game-changer  

Pivoting to an obvious but highly relevant example, the intersection of generative artificial intelligence (genAI) and large language models (LLMs) presents a complex landscape for organizations.  

As we navigate this terrain, it’s essential to consider the potential risks and compliance challenges alongside the opportunities for innovation. Decision-making should be deliberate and strategic, rather than purely reactive to technological advancements.  

While we’ve anticipated the technological advancements, the more significant impact of genAI and LLMs will be cultural. My seven years in the AI field have reinforced this. Although AI has been around for some time, its cultural impact is now becoming more apparent. Those of us working in the field have always had a general understanding of its technological implications, but the cultural shift is truly groundbreaking. 

I liken it to when Macs and iPhones became a thing in the corporate world, we resisted it and wanted everybody to be on a Blackberry. IT leaders would say ‘There’s no way this is going to happen, we’re an all-Microsoft shop.’ And it was the consumer who pushed it into the corporate world, and we had to deal with it.  

Well, genAI is poised to redefine organizational dynamics in the same way.  

CIOs must proactively address the cultural implications of genAI. It’s no longer sufficient to simply react. Microsoft’s Copilot serves as a prime example of how consumer-facing technology can rapidly infiltrate the workplace. Organizations that lack clear policies around genAI are inherently vulnerable. Embracing the technology while carefully managing its integration is crucial.  

One significant cultural challenge is the potential erosion of subject matter expertise. For example, we’ll sometimes get proposals or statements that were written by a generative AI. As we become increasingly reliant on AI-generated content, there’s a risk of diminishing original thought and critical thinking. Authenticity and trust are paramount in professional relationships, and the use of genAI can undermine these foundations. When you receive something like this from a colleague or a team member and you know they haven’t written it, you start to lose trust in that person’s expertise, in that person’s opinion. People are not looking at it from that cultural impact perspective in the organization.   

Balancing risk and innovation  

Despite these challenges, genAI offers immense potential to enhance employee productivity and create new opportunities. However, its impact on culture must be carefully considered to maximize benefits and mitigate risks.  

Risk management is essential, but it shouldn’t stifle innovation. I learned early on in my career, especially as I delved into innovation, that risk is something to be managed, but it shouldn’t lead anything. You need to be able to apply risk as a treatment, or a layer or a lens to what you’re doing. But if you lead with risk, you hinder things like innovation. What I mean by that is you have to allow people to fail. Failing is managing risk. If you experiment early, if you’re experimenting with LLMs and genAI, bring your risk partner along, but understand what the boundaries are from your risk partner. Don’t let that lead what you’re doing, and fail as early as possible, learn from it, manage the risks along the way. 

By adopting a lean startup approach, organizations can balance experimentation with risk mitigation. Early failures can be valuable learning experiences when approached with a growth mindset. Collaborating with risk management teams can help establish boundaries while fostering a culture of innovation.  

This creates a promising opportunity to enhance the creativity and creative thinking skills of executive teams. To fully leverage the potential of AI, executives must generate innovative ideas and use cases that provide a competitive advantage. It’s essential to remember that AI is a tool, and its effectiveness depends on the user’s ability to utilize it effectively. As Daniel Pink predicted in his book “A Whole New Mind,” right-brain thinkers will take over the world. He was not wrong, and here we are. Bring on the creatives! 

In conclusion, the successful integration of genAI requires a holistic approach that considers both technological and cultural implications. By proactively addressing these factors, organizations can harness the power of AI while safeguarding their reputation and workforce. 

Tina Mathas, a respected leader with 29 years of experience in technology, is the CTO at General Bank of Canada. She is known for her ability to guide teams through complex projects and foster a collaborative work environment. Her entrepreneurial spirit and strategic mindset make her a valuable advisor. She joined GBC for the opportunity to build on GBC’s rich history and to grow a challenger bank that will provide relevant innovative digital products for their business clients that are building the future.