Three Transitions are reshaping the enviornment facing the Enterprise and IT.

Transcription

1 Three Transitions are reshaping the enviornment facing the Enterprise and IT. Economic conditions are in transition as markets, regulatory and customer markets define the terms of competition and success. - There is a premium on focus and speed of execution to capture volatile market opportunities. Enterprise strategies are in transition as they move from a focus on consolidation and efficiency to growth and productivity. - Firms will face their own challenges based on industry, geography and size. Technology is in transition as heavy weight owner-operated models are giving way to light weight service based models. - Cloud Computing, Social Media, Mobile and other technologies change IT capabilities, economics and responsibilities.

2 CIOs recognize that IT has to change When the economic conditions improve, how likely is your IT organization to return to the way it was in 2007/2008? 23% 50% 36% Percentage of Responses 14% 13% 14% 13% 11% 12% Very Unlikely Not Sure Very Likely

3 Extending IT s reach to the business edge. Business Expectations Ranking of business priorities CIOs selected as one of their top five priorities in 2010 and projected for 2013 Ranking Improving business processes costs Increasing the use of information/analytics Improving enterprise workforce effectiveness Attracting and retaining new customers Creating new products or services (innovation) Managing change initiatives * 12 Expanding current customer relationships * 9 Consolidating business operations * 16 Targeting customers and markets more effectively * 10 Supporting regulation, reporting and compliance Creating new sources of competitive advantage Expanding into new markets and geographies * 6 * New Question Note: Interim CIO survey results will be presented during Symposium.

4 CIOs see the future in building business relevance and raising IT productivity. What are the most important issue facing IT between now and the next three years? Positioning the IT organization to be perceived as partners with the business 20.4 Demonstrating IT s value proposition to the business 11.9 Raising collaboration across the enterprise and with external parties 10.0 Raising business productivity by more than 10% 8.9 Managing a common set of technology priorities across multiple business units 6.4 Reorganizing IT to raise its performance (efficiency, quality, productivity) 6.0 Improving IT investment priorities and decisions (e.g. higher ROIC) 5.8 Assessing and securing the right level of IT skills to deliver IT s mandate Consolidating business operations 4.6 Improving IT productivity and quality (e.g. Six Sigma, Lean for IT etc.) 3.1 Incorporating cloud computing into IT s strategy and operations 3.0 Adopting social computing and Web 2.0 technologies into the enterprise 2.4 Addressing new information and data security requirements 2.3 Supporting new reporting requirements to the board, regulators, and customers 2.3 Managing a heavily outsourced IT organization (greater than 75%) 2.2 Defining and managing an IT services catalogue 1.3

5 Achieving leadership and solution imperatives CIO Strategies Ranking of CIO strategies CIOs selected as one of their top five priorities in 2010 and projected for Ranking Delivering projects that enable business growth Linking business & IT strategies and plans Reducing the cost of IT Implementing IT process improvements Improving the business and IT relationship * 9 Improving IT governance Use of information/intelligence Developing or managing a flexible infrastructure Consolidating IT operations (e.g. shared services) * 17 Attracting, developing and retaining IT personnel Improving the quality of IS services Building business skills in the IT organization Leading enterprise change initiatives Applying business metrics to IT * 10 * New Question Note: Interim CIO survey results will be presented during Symposium.

6 IT transformation invovles greater direct contribution to business results. Capability Description IT is responsible for managing and operating technology systems and resources efficiently in terms of their cost, availability, reliability, security, etc) IT is responsible for enabling business operations by building and Enabling 33% operating technology systems defined by the business. IT is responsible for contributing to the enhancement of business operations by using technology proactively to raise business performance. Contributing 42% IT is responsible for being the primary source of the enterprise s competitive advantage as technology is a differentiator in enterprise products or services. Differentiating 8% IT is responsible for the transformation of the enterprise s business model and the creation of new markets and rules of competition Survey Distribution Functional 23% Transforming 4% Source: January 2010, 1,585 CIOs

7 CIOs believe that IT has become an integral part of business over the last 10 years. How have the minimum requirements for IT changed over the past 10 years? 27% Solutions (e.g.: QOS) 20% Supporting Scale and Complexity 9% 11% Percentage of Responses Increasing Across the Board 9% 8% Reducing Cycle Time N = % 4% 3% 3% 6% 5% 10% 15% 20% 25% 30%

8 CIO see the need for change but envision IT's role as unchanged for the next 10 years. What will IT's strategic contribution be over the next 10 years? 20% Solutions 19% 17% 10% 12% Percentage of Responses 10% 10% No Change 2% N = % 5% 10% 15% 20%

9 Should the future of IT remain largely the same as its past? 25%+ Change in Minimum Requirements over past 10 years 20%+ 15%+ Solutions Supporting Scale and Complexity Reducing Cycle Time Increasing Across the Board No Change Future Strategic Contribution Projected for next 10 years Solutions No Change

10 Should the future of IT remain largely the same as its past? 25%+ Change in Minimum Requirements over past 10 years 20%+ 15%+ Solutions Supporting Scale and Complexity Reducing Cycle Time Increasing Across the Board No Change Future Strategic Contribution Projected for next 10 years Solutions No Change

11 Leading in Times of Transition: new expectations, strategies and responses. Issue Coming From Extending To How Enterprise Strategy Matching resources to declining revenues and concentrating on preserving services, earnings and cash. Generating growth through innovation and entering new markets and geographies. Using information and processes as sources of innovation Reaching customers through new channels. Business expectations for IT Providing quality services at a managed and declining cost Raising business relevance by increasing productivity and engaging customers. Extend information and processes to the business edge through new technologies. IT strategies and plans Providing high quality services and increasing capacity at a managed cost Make IT more business relevant by delivering the right capabilities at speed and scale. Focusing on doing fewer things faster by reducing delivery cycle times.