Home > Tech > Expert Contributor

Five New Year’s Resolutions for Tech Leaders in Mexico

By Philipp Haugwitz - McKinsey & Company
Partner, McKinsey Digital Mexico Leader

STORY INLINE POST

Philipp Haugwitz By Philipp Haugwitz | Partner - Mon, 02/10/2025 - 07:00

share it

Technology leaders will need bifocals to navigate 2025. They will need to focus on the macro trends that have been in play for years, such as the pace of technological change and demographic shifts, while staying updated and resolute on the specific changes we can expect in the coming year, such as new administrations and regulatory changes.

These developments on different scales will push the evolution of technology in two particular ways. One is what we’ve been calling the “new dawn” of the tech leader, meaning the transformation of the role and responsibilities of multifaceted technology officers, so that they become business builders, protectors, orchestrators, and operators. The other is the drive to link technology investment more closely to the creation of business value, requiring tech officers to go deep into how technology is evolving and what the implications are for their company.

As tech officers look to fulfill these high expectations in 2025, they will need to navigate some likely developments. Those could include, for example, renewed investments in technologies leading to a tightening of the talent market (especially with baby boomers retiring and taking their knowledge of systems with them), breakthroughs in the use of GenAI agents to take on increasingly difficult tasks (at lower cost), profitability pressures, and resilience and cyber issues driven by complex technology environments on the one hand and more sophisticated attacks on the other.

In light of the challenges ahead, here are five resolutions for tech leaders, as a blueprint for moving beyond problem-solving and arriving at the shores of business value creation. 

 

  1. Remember: Put the ‘Human’ Back in ‘Human-Centered AI’

According to our research, the surge of artificial intelligence could unlock a potential of up to US$4.4 trillion globally and a productivity uplift of 3.4% annually for Mexico until 2040. To make this forecast hold, human-centered AI should truly live up to its name. Despite the excitement around generative AI and other technologies, it's crucial to remember two key insights: it’s never just tech, as technology alone doesn't create value; it requires significant organizational and operational changes as any transformation is fundamentally a people transformation. Chief information officers (CIOs) need to grasp these truths to move beyond the initial excitement and practical frustrations of implementing generative AI.

CIOs should focus on three main areas. First, they need to address the potential effects of generative AI on tech jobs. While early experiments show promise, the potential job changes and skill shifts are causing resistance. Clear and consistent communication about these changes and opportunities is essential. Second, CIOs should emphasize skill building. Effective skill development enhances performance and helps individuals adapt and grow. GenAI can tailor learning to individual needs, making skill-building more effective.

Third, learning efforts should be focused on a domain level. Digital and AI transformations are effective when applied on a large enough scale to matter but small enough to be practical. Tech leaders will have to collaborate with human resources to understand the full implications of developing learning journeys in a generative AI world, including identifying required skills, creating tailored learning programs, measuring effectiveness, and adapting as technology evolves.

 

  1. Embrace: GenAI Agents to Accelerate Tech Modernization

Generative AI is transforming the cost-benefit analysis of modernizing legacy tech and reducing tech debt. With up to 70% of Fortune 500 software developed over 20 years ago, the potential for generative AI to accelerate tech modernization and cut costs is significant. However, capturing this value requires a broad approach.

Tech leaders could scale generative AI agents, enabling hundreds to operate independently with human oversight. These specialized agents can collaborate on complex tasks, such as data analysis and test case design, refining outcomes based on real-time feedback.

Also, the scope of work for AI agents needs to expand to include entire software development processes. Effective management of these agents requires feedback loops, direct communication with managers, and sufficient human oversight. CIOs should focus on high-value, complex technology problems. Generative AI has the potential to redefine the cost-benefit ratio of modernizing systems and reducing tech debt. Identifying and addressing the largest, most complex issues will be crucial.

The problem lies often (usually) not with the technology but with how it is implemented. CIOs must streamline the entire development life cycle, track meaningful performance metrics, and focus on the people using the tools. To capture productivity gains, redesigning roles, adjusting incentives, and potentially restructuring teams, will be necessary.

 

  1. Build: Resilience for IT and the Business

In 2024, companies faced a wake-up call about business resiliency due to high-profile outages and increased scrutiny. As technology complexity grows, the challenge in 2025 will be making the business itself more resilient, not just fortifying IT systems.

This requires a mindset shift. Instead of a do-it-all approach, CIOs should focus on what matters most to their business. Prioritizing the most critical 30% of the business for 100% resiliency is more effective than aiming for 80% resiliency across the board.

Tech leaders should assess resiliency at the journey level, evaluating all steps and dependencies for business-critical applications. This includes developing a framework for evaluating vendors and their subcontractors. Advanced processes like chaos engineering, which tests system resilience by introducing failures, will be essential.

 

  1. Perform: Validate Tech Promises

Businesses are frustrated by the gap between technology's promises and the reality of mounting costs. This frustration often arises from maintaining both cloud and on-premises environments. In 2025, tech leaders have the tools to answer the fundamental question: What am I getting for my IT spending?

Technologies like cloud, software-as-a-service, and generative AI products offer more than just an accounting shift. They provide granular spend tracking, transparency, and accountability. CIOs could apply these insights to manage IT costs and encourage business accountability for tech spend.

Investing in better tracking and management capabilities, and training business teams to use these tools effectively, will be crucial. For example, poor prompt formulations with generative AI tools can be costly, prompting business leaders to improve their teams' tool usage.

 

  1. Transform: Enterprise Resource Planning to Cut Costs

Enterprise resource planning (ERP) transformations are daunting but necessary. With new-generation systems on the horizon, CIOs in 2025 have an opportunity to slash costs by 20 to 30% or more. This starts with scrutinizing system integrator spend, which often accounts for 50 to 70% of ERP transformation costs. Cutting unnecessary change requests, renegotiating contracts, and managing vendors more closely can significantly reduce costs.

Additionally, developing and tracking the business’ key performance indicators to assess the impact of ERP transformations is essential. New process mining tools offer unprecedented transparency into process and KPI performance, enabling more effective management and cost savings.

As I mentioned at the beginning of this article, these five resolutions should serve as a blueprint for tech leaders to navigate the challenges and opportunities that 2025 will present. In doing so, CIOs will not only address the immediate tasks but also pave the way for sustainable growth and innovation, ensuring their organizations are well-equipped to thrive in an ever-evolving digital world.

You May Like

Most popular

Newsletter