As a CIO of a growing manufacturing company, I am finding many companies, including ours, facing a critical issue: skills gaps impacting essential technologies. For our business, and indeed any modern enterprise, these gaps represent formidable challenges that need to be addressed to maintain a competitive edge and ensure a robust technology infrastructure. Using my company’s experience as a jumping-off point, I’m going to explore the areas where these gaps are most pronounced: cloud computing, cybersecurity, artificial intelligence (AI), data science, and ERP systems.
Cloud Computing
After my company migrated from an on-prem enterprise resource planning (ERP) system to a cloud-based ERP, our reliance on cloud technology increased. The system architecture and data architecture has become much more complicated, and there are many hidden costs that create challenges. It would be difficult to rely completely on third-party partners to manage all of it, so we have to level up our in-house skills.
- Skills Needed: Knowledge of cloud service providers (AWS, Microsoft Azure, Google Cloud Platform), cloud architecture, migration skills, and management of cloud infrastructure.
- Skills Gap Impact: Can slow down migration projects and impede efficient scaling of cloud services.
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Cybersecurity
It’s a never-ending race to stay out in front of the bad actors. The level of expertise needed to combat hackers and ransomware is far too high for my company to maintain completely in-house. We rely on third-party managed service providers for a lot of our cybersecurity needs. Even with all that, there is still a need for cybersecurity training and skills on my team.
- Skills Needed: Expertise in threat analysis, mitigation techniques, security protocols, incident response, and regulatory compliance like General Data Protection Regulation (GDPR) and Health Insurance Portability and Accountability Act (HIPPAA).
- Skills Gap Impact: Leaves organizations vulnerable to data breaches, ransomware attacks, and other security threats, potentially leading to significant financial and reputational damage.
Artificial Intelligence (AI)
I’ve been interested in bringing AI into our company for several years, but we lack the in-house expertise to get started. Hiring an outside company for a costly project seems risky without a good understanding of the technology. Recently, new generative AI tech has made it easier to use some AI, but diving in more aggressively requires expertise we don’t have. We’re working on learning more and also looking for skilled hires.
- Skills Needed: Proficiency in machine learning algorithms, neural networks, natural language processing, computer vision, and the ability to apply these skills to solve real-world problems. Programming skills in Python, R, and knowledge of TensorFlow or PyTorch are also essential.
- Skills Gap Impact: AI has applicability across every industry, from healthcare to finance to retail. A lack of skilled AI professionals can hinder innovation, product development, and the implementation of efficient AI tools.
Data Science
Self-service data analysis has become much easier with tools like Power BI. However, getting all the data that business users need to analyze into the right models requires a higher level of expertise. We’ve found that certain power users in the business units outside IT can handle quite a bit of data analysis, but there are still projects that depend on a degree, or at least extensive training, in data science. That expertise will also help ensure that the analyses are done correctly.
- Skills Needed: Ability to analyze and interpret complex data sets, use statistical tools and algorithms, and knowledge of programming languages like Python and R. Skills in data visualization and the use of platforms like Tableau or Power BI are also valuable.
- Skills Gap Impact: Data science skills are crucial for making informed business decisions, optimizing operations, and enhancing customer experiences. The skills gap here can result in missed opportunities for growth and efficiency.
ERP Systems (SAP, Oracle, Dynamics 365, etc.)
ERP systems have been around for quite a while, and many companies are still using legacy on-premises systems, for which experienced workers are becoming harder to find. Even for the newer cloud-based ERP systems, there is still a significant learning curve to become proficient in customizing, maintaining, and supporting them. Finding experienced workers is challenging, leaving companies with the choice of hiring very expensive pros or hiring someone with little or no experience and then training them on the ERP system. For my company, we’ve opted to hire for other talents and then train on our ERP system, Dynamics 365.
- Skills Needed: Expertise in specific ERP systems, understanding of business processes, system configuration, database management, and custom development. Skills in migration, integration, and updating ERP systems are also in demand.
- Skills Gap Impact: A shortage of skilled professionals in ERP systems can lead to operational inefficiencies, project delays, and the inability to leverage the full capabilities of the ERP software.
Addressing The Gaps
Organizations can take proactive steps to bridge these skill gaps through targeted training programs, partnerships with educational institutions, and creating clear career paths in these areas. Additionally, focus on reskilling and upskilling existing employees to meet the demands of these evolving technology platforms. For individuals looking to enter or advance in the IT field, focusing on these areas can offer significant career opportunities.
As a CIO, I recognize that addressing these skill gaps is not just about filling positions; it calls for spearheading a culture of continuous learning and adaptation that aligns with our strategic vision. It’s about leveraging partnerships, fostering talent development from within, and ensuring that our workforce is equipped to propel our organization into the future of technology-driven business.
