RESEARCH REPORT

10-MINUTE READ

CIO Wave of Change

August 15, 2025

CIOs across ANZ are modernising under pressure from security threats, regulatory demands, and AI-driven business goals. While AI, analytics, and automation are high on the agenda, foundational gaps persist. Solutions that unify fragmented ecosystems and accelerate readiness, without adding complexity, should be their key focus.

C-suite leaders across ANZ anticipate that the second half of 2025 will require simultaneously navigating multiple priorities. In addition to streamlining operational processes, modernising infrastructure, and embeddingAI into their functions, CIOs are also having to continue to balance security and intelligence.

WHY EXECUTION SLOWS: MAPPING THE REAL FRICTION POINTS

While digital transformation agendas have long prioritised innovation and new capability building.

While digital transformation agendas have long prioritised innovation and new capability building, CIOs across ANZ are now signalling a more pressing concern,that of internal friction. Factor research shows that nearly one-third (29.7%) of respondents identify manual effort as the top factor slowing outcomes. This reveals apersistent reliance on outdated processes, fragmented handoffs, and workflow gaps, despite the availability of automation platforms. The reality is that many ITorganisations are still structured around effort-intensive operating models that sap productivity and delay time-to-value

30%

cite manual effort as the biggest internal friction, signalling

11%

point to legacy system lock-in, reflecting the drag of

10%

identify fragmented integrations, highlighting the

report change resistance as a barrier, underlining the

ORGANISATIONAL PREPAREDNESS

DIVIDE BETWEEN MODERNISATION & READINESS

CIOs across ANZ report that while organisations have made strides in modernising infrastructure, confidence in their ability to respond effectively to upcoming technological shifts remains mixed.Organisations across ANZ are making deliberate progress in strengthening their infrastructure foundations and aligning with emerging technology trends. However, preparedness levels show aclear divide between modernisation efforts and readiness for advanced capabilities such as AI andautomation.

27%

describe their infrastructure as cloud-native, signalling

20%

operate on a hybrid model, reflecting the need to

still rely on legacy systems, highlighting ongoing

run AI/ML workloads, showing that advanced use

AI ADOPTION ENTHUSIASM PLAGUED BY BOTTLENECKS

Despite growing enthusiasm for AI, infrastructure and operational readiness remain critical bottlenecks for many organisations across ANZ. Our survey covering AI/analyticsmaturity, visibility gaps, internal friction, and AI adoption barriers collectively highlight why scaling generative AI initiatives continues to be challenging. The culmination ofthese insights shows that unresolved operational and infrastructure challenges are preventing AI from moving beyond pilot phases to enterprise-wide deployment.

29%

identify cloud systems as the leading source of visibility

16%

point to integration points, highlighting interoperability

15%

cite on-premises applications, reflecting ongoing

14%

note data pipelines as a critical blind spot, limiting real

13%

report SaaS platforms as a visibility challenge

MODERNISATION

DRIVERS FOR CIOS

The alignment between performance improvements and modernisation priorities reflects CIOs’ push to build a future-ready digital core. CIOs across ANZ are accelerating modernisation efforts to eliminate inefficiencies, improve agility, and prepare for a data-driven future. The data shows a strong emphasis on removing operational friction, with cloud workflow orchestration and data pipeline processing identified as the areas where reducing manual steps will deliver the largest performance gains

45%

cite legacy risk reduction as the primary driver formodernisation, underscoring the urgency to replace

11%

point to SaaS adoption pressures, signalling a shift

24%

prioritise agility and speed-to-market demands

11%

highlight cloud-native development pushes, showing

reference compliance or audit readiness pressures

POTENTIAL IMPACT LEVELS

At the core of modernisation efforts are ERP systems and data platforms. With ERP modernisation and data & analytics platform enhancements ranking highest in impact, CIOs are prioritising these areas to create a flexible and AI-ready digital backbone. Workflow automation and integration/API strategy enhancements further reinforce theneed to connect fragmented systems and optimise operations.

27%

describe their infrastructure as cloud-native, signalling

20%

operate on a hybrid model, reflecting the need to

still rely on legacy systems, highlighting ongoing

run AI/ML workloads, showing that advanced use

ACTUAL IMPACTS DELIVERED SO FAR

CIOs see the biggest performance lifts from cloud workflow orchestration, with over 20% of respondents identifying it as the top improvement area. Data pipeline processing follows closely, indicating that better automation of data flows is critical for real-time analytics and AI enablement.

27%

describe their infrastructure as cloud-native, signalling

20%

operate on a hybrid model, reflecting the need to

still rely on legacy systems, highlighting ongoing

run AI/ML workloads, showing that advanced use

WHERE PLATFORMS FALL SHORT: CIOs SPEAK OUT

CIOs across ANZ highlighted several gaps where current vendors and platforms are failing to meet expectations. The data reveals concerns around scalability, complexity, cost efficiency, and innovation. These gaps highlight the need for platforms that can align more closely with the strategic priorities of modern organisations, including integration, automation, and AI-readiness.

Areas Where Current Vendors Or Platforms Fall Short

Vendor or Platform Defieciency

Implications

Can’t scale (23%)

Current platforms cannot grow to meet increasing workloads or data demands, limiting flexibility and operational resilience.

Too complex or fragmented (18%)

Complexity and fragmented architecture create inefficiencies, requiring costly maintenance and specialised expertise.

Lack of roadmap innovation (16%)

Vendors are not innovating fast enough, leading to outdated platforms that cannot keep up with emerging technologies.

High cost/TCO (15%)

The total cost of ownership, including maintenance and licensing, is seen as disproportionately high.

Missing critical integrations (11%)

The absence of seamless integrations creates data silos and hampers cross-platform workflows.

Poor support/service (10%)

Slow or inadequate support undermines reliability and delays resolution of critical issues.

Misaligned to current priorities (7%)

Platforms fail to support evolving business priorities such as AI-readiness, automation, and scalability.

ANZ CIO CURIOSITY IS ANCHORED IN EXECUTION, NOT JUST HYPE

ANZ CIOs are no longer content with aspirational roadmaps or speculative discussions about the future of technology. Their questions and priorities have become decisively pragmatic. What they’re seeking now is execution clarity; a grounded understanding of how transformation is actually getting done in comparable environments. The interestin AI and decisioning continues to dominate, but it's not about the hype of generative tools or theoretical potential.

Anz CIO’s Top Areas Of Interest

Theme

% of Mentions

Key Areas of Interest

Challenges Identified

AI & Decisioning

39.5%