“With the increased reliance on IT from business leaders, it’s important for CIOs to understand the concerns of CEOs and the implications they may have on IT,” says research group Gartner.

Its analysts have pinpointed seven key CEO issues that CIOs should address in the forthcoming year:

• Fading confidence  Investment is likely to remain low if confidence continues to decline. Most CIOs should assume they will be given “very limited increases in resources” by their CEOs.

• Maintaining internal cash generation  CEOs are faced with the need to invest in growth at the same time as maintaining healthy cash surpluses to defend against bouts of high business volatility. CIOs should ensure that among the projects they are pursuing the contribution to cash-generation and cash flow acceleration is visible.

• Investing in new cost efficiencies  CEOs know they will need to develop systemic efficiencies by re-engineering rather than simple cutting. CIOs who target at least one major business process to revolutionize or obliterate in 2011-12 are likely to receive strong CEO approval.

• Applying innovation for growth  Most businesses have continued with R&D investment despite the recession, although new product and service launches may have been held back. CEOs will now be looking to monetize the innovation bets they have been making. IT’s help is required here, particularly in adding ecommerce, eservice, social marketing, smartphone and location-based innovations to bolster new launches.

• Engaging the politicized economy  As political leaders rewrite the rules on how economies operate, CEOs will need to engage in serious debate with them. They will need strategic information to win political battles and rapid compliance to avoid penalties. CIOs should ensure they are able to help with complex data analysis and information inquiries.

• Long-term sustainability  CEOs are learning to work with a sustainability mindset and gain business benefits from it. Although reducing the power consumed in IT operations remains important, for most organizations, the more important issue is how IT can help the business to operate more sustainably. (See also our in-depth report on CSR.)

• Legacy and succession  Gartner predicts an increase in CEO turnover in the next 18 months, and their replacements are likely to come from current CIOs’ peer groups. CIOs should identify these people now, and take time to ensure they have a positive attitude towards — and good understanding of — IT.