The impact of technology in industry on the changing role of the CIO

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1 Follow The impact of technology in industry on the changing role of the CIO Emilie Ditton, Head AP Vertical Markets, IDC Australia

2 Objective Discuss the environment CIO s are operating in, understand the role of IT in the business, and explore the concerns of the organisation Explore the third platform and the 4 forces, and how this is driving fundamental change The role of innovation IDC Visit us at IDC.com and follow us on 2

3 19 14 Australian IT Spending Growth By Technology Segment Total WW IT growth decelerating due to phones and tablets; Tablet growth slows from 56.8% in 2012 to 6.8% in 2014 PC crash bottoming: -21% in 2012, versus 7% in Source : IDC Worldwide Black Book Q4 2013; growth in constant currency IDC Visit us at IDC.com and follow us on 3

4 What are the priorities for CIO s in ANZ? 26.5% Market expansion new customers, segments and geographies 26.3% cost savings or productivity and efficiency gains Source: IDC ANZ CIO Survey, n= 4 IDC Visit us at IDC.com and follow us on 4

5 25% 20% 15% 10% % 0% Market expansion Efficiency & productivity Invest in sales & marketing Overall cost savings Source: IDC ANZ CIO Survey 2012, 2013 and 2014 IDC Visit us at IDC.com and follow us on 5

6 Changing Our Business 27.5% create new workflows, customer engagement touch points and operating models Banking, Manufacturing, Retail, Transport Driving Productivity & Efficiency Changing the Business 1. Risk 2. Leadership 24.4%. 3. Governance Primarily drive productivity gains and optimise business process Government, health, education and resources Disrupting the Industry 17.5% creating new challenges and re-think/re-do to stay relevant Education and resources What Role does IT play in your organization (Top3)?

7 What about CEO Challenges? New business models New government regulations Escalating cost of operations Rapid price/value decline of products/services New competitors Lack of relevant skill sets LoB IT The CIO and LoB leaders agree as to the CEO Challenges Corporate social responsibility Rapidly changing customer buying patterns Globalization 0% 2% 4% 6% 8% 10% 12% 14% 16% The only area where there is difference is in the speed of customer change Source: IDC ANZ CIO Survey, n= 480 7

8 The Disruption of 3 rd Platform Technologies 61% of funding of technology projects has shifted to business What does this mean about: The role of IT within the organisation? How IT needs to be organised? Source: IDC Business Technology Study, May 2013, n = 1227 IDC Visit us at IDC.com and follow us on 8

9 The CIO and the Organisation Digital is driving change: Companies are facing disruption and with it the IT function. CIO Priorities are Responding: Growth in supporting marketing & sales / market expansion Productivity & Efficiency within the organization IT is increasingly seen as an enabler of the top line as well as controlling the bottom line IT & Business agree in the CEO challenges going forward IT Budgets for new Technology Infrastructure systems 42% New 21% Essential 37% software Source: IDC Vertical View Survey, 2013, n = 3,875, 23% Asia/Pacific IDC Visit us at IDC.com and follow us on 9

10 Five Critical Capabilities Enabled by the 3rd Platform The 3rd Platform creates the underpinnings for business process transformation and in some cases, business model transformation Businesses will be able to transform: How they engage with customers The speed at which they deliver their products and services How they innovate Their resiliency The reliability of their operations With such high stakes, the business is increasingly taking a front seat in technology initiatives 10

11 Value of Transformation Prescriptive Driving Towards Healthcare Efficiency Sustainable Healthcare Systems Care Coordination Integrated Care + Health / Wellness Sustainable care Competitive Advantage Cost Predictive Population Health Disease Management Risk Mgt Population Health Patient Experience Reactive Business Intelligence EMR HIE Compliance Clinician access to clinical records Treatment protocols HEALTH C Now 5 Year Horizon

12 Value of Transformation Prescriptive Driving Towards Healthcare Efficiency Sustainable Healthcare Systems Predictive Care Coordination Sustainable care Competitive Advantage Cost Population Health Patient Experience Reactive EMR HIE Compliance Clinician access to clinical records C Now 5 Year Horizon

13 Value of Transformation Digitally Executed Resilient SC Servitzation Optimization Future Factory Product Economics Product Economics Resilient SC 3D Value Chain Manufacturing Intelligence Servitzation Optimization Data Driven Demand Oriented Systems Eng. Connected Service Platforms Visual Decision Making Future Factory Standard Mfg. Ops. Platform MANUFACTURING Integrated Planning Segmentation Field Service Excellence & Mobility Engagement Speed Reliability Innovation Resiliency Now IDC Retail Insights Visit us at IDC-ri.com 5 Year Horizon

14 Value of Transformation Digitally Executed Resilient SC Servitzation Optimization Future Factory Product Economics 3D Value Chain Manufacturing Intelligence Data Driven Future Factory Demand Oriented Standard Mfg. Ops. Platform Engagement Speed Reliability Innovation Resiliency Now IDC Retail Insights Visit us at IDC-ri.com 5 Year Horizon

15 Digital Oilfield Integrated Operations Profitability Based Production Fully Aware Production Optimization Remote Operations Management Bad Actor Identification Unconventional/ Complex Drilling Real-time Drilling Predictive Asset Intelligence Operationalized Asset Intelligence Transport Optimization Informed Drilling Delivery Logistics Production Optimization Asset Integrity Digital Oilfield Early Adopters Shared High Frequency Drilling Data Asset Surveillance Oil and Gas Enhanced Scheduling Dynamic Oilfield Operations IDC Visit us at IDC.com and follow us on 15

16 Digital Oilfield Integrated Operations Real-time Drilling Unconventional/ Complex Drilling Informed Drilling Delivery Logistics Production Optimization Asset Integrity Digital Oilfield Early Adopters Shared High Frequency Drilling Data Dynamic Oilfield Operations IDC Visit us at IDC.com and follow us on 16

17 Mashup Value of Transformation Accountability & Transparency Sustainable Urbanization Services Personalization IT Resources Optimization Industry & Socio-Economic Leadership Collaborative Environments Multi-Directional Communications Performance Monitoring Tools Smart City Pilots Bidirectional Communications as Social Business ROI AI-Based Services Personalization Now Groom Big Data Competencies M-Government Security, Access & Control Mixed-Combination Security Solutions to Mitigate Complex Threats Further WOG IT Consolidation with Cloud Dynamic Information Sharing GOVERNMENT Collective Intelligence & Crowdsourcing Making Sense of Big Data- Knowledge Capture, Content Management & Machine Learning Geo-location Awareness, Analytics &Security Predictive Analytics 24X7 Access to Virtual Files Tomorrow s Govts Infonomics Internet-of- Things to Boost Operations of Critical Infrastructures 360-Degree Stakeholder Engagements, & Collaborations Government Innovation in the 3rd Platform Innovating Boldly for the Future 5 Year Horizon IDC Government Insights Visit us at IDC-gi.com 17

18 Mashup Value of Transformation Mixed-Combination Security Solutions to Mitigate Complex Threats Dynamic Information Sharing Tomorrow s Govts Infonomics Accountability & Transparency Sustainable Urbanization Services Personalization IT Resources Optimization Industry & Socio-Economic Leadership Collaborative Environments Smart City Pilots 24X7 Access to Virtual Files Geo-location Awareness, Analytics &Security Internet-of- Things to Boost Operations of Critical Infrastructures 360-Degree Stakeholder Engagements, & Collaborations Government Innovation in the 3rd Platform Innovating Boldly for the Future Now 5 Year Horizon IDC Government Insights Visit us at IDC-gi.com 18

19 Investment Priorities in ANZ Converged platforms (speciality systems for Big Data for e.g.) Security Cloud orchestration & service m ment Data visualisation/ reporting Security/ privacy/ risk management Data quality/ availability assurance Security Applications Smart phones Tablets Security Social collaboration Business application/ process integration IDC Visit us at IDC.com and follow us on 19

20 What are your Major Challenges Associated with IT Implementations? Growing Complexity of the IT Environment Lack of understanding of new technologies Lack of required skills to execute IT needs to educate the business reality/versus hype Governance Technology can do a lot more than keep the lights on CIOs as partners/facilitators for innovation for the business Build understanding of 4 pillar technologies within your organisation 33% of new projects involving technology will be inhibited until 2018 because of lack of availability of 3 rd platform knowledge and skills Building those skills sets will come from across the business and not just IT Source: IDC ANZ CIO Survey 2012, 2013 and 2014 IDC Visit us at IDC.com and follow us on 20

21 1 High strategic impact Technology push Contribute to the top line Enable the 3 rd platform Transformation driving the business Achieving cross company productivity Keeping the lights on 2 3 Tactical impact Contribute to the bottom line Respond to business Manage risk Limited strategic impact Day to day IT management Achieving cross company productivity Which one are you going to be? Keeping the lights on Keeping the lights on

22 Conclusions Take steps to build the skills IT is Focus at a point on governance of inflection.. Educate the business IDC Visit us at IDC.com and follow us on 22

23 Thank you Emilie Ditton Head, Asia/Pacific Vertical Markets, IDC Australia editton

24 Worldwide IT Spending Growth By Technology Segment % Increase Total IT growth decelerating due to phones and tablets; enterprise spending on software, services and infrastructure showing signs of improvement in mature economies including US and Europe Tablet growth slows from 32% in 2013 to 18% in 2014 PC crash has bottomed out: -6% in 2014, versus 7% in Source : IDC Worldwide Black Book Q4 2013; growth in constant currency 24