Matt Oostveen. Director of Research IDC

Transcription

1 Matt Oostveen Director of Research IDC

2 Agenda Transformation C-Suite Survey CFO Perspective IT Scorecard IDC Visit us at IDC.com and follow us on 2

3 Multidimensional Transformation By % of New Software will be available via Cloud In 2013 Tablets & Smartphones Will Drive Almost 60% of All IT Market Growth App Developers in 6 months: 16%: create an app for smart TVs 14%: for Google Glass Proving ROI on Big Data in Australia is rare 7% of organisations do this 57% of ICT decisions will involve a line of business executive Growing to 80% in % of enterprises over 100 seats are currently involved in a platform migration 50% of new marketing hires will have technical backgrounds In 2013 Digital universe will expand by almost 50% to just shy of 4 trillion gigabytes 3

4 IDC 2013 C-Suite Survey ANZ respondents From Australia 40% CFOs & CMOs March to May 2013 CIOs represent Telephone based Interlocked quota 60% Business Size, State, Vertical Industry 4

5 C-Suite: Business Initiatives Looking out to , what will be your organisations top business initiatives? The 2 watchwords across the business are efficiency & productivity The challenge we face is doing this in a cost effective way CFOs go it alone in focusing on market expansion Business agility is underpinned by the agility of the IT function itself 5

6 C-Suite: Business Concerns Looking out to , what are your organisations top business concerns? Finding new customers, in new markets generating more profit Skills shortage in IT is the biggest concern for Australian CIOs 6

7 CIO: Technology Priorities 14% 13% 12% 10% 7% Improving or simplifying IT infrastructure Lower overall cost structure Application modernisation Adding mobile functionality to existing Apps Automating business processes Reducing App maintenance & testing costs Building a more secure IT environment 7

8 CIO Deployment: The mega-trends Mobility Cloud Big Data is represented by both platform migration & BI Predictive analytics. 8

9 CIO: IT Budgets & Headcount Increase Flat Decrease % 42.3% 30% 35.1% 13% 22.7% Budgets under pressure. Echo from a stream of poor economic data in late 2012 Increase Flat Decrease % 62% 14% Vast majority of CIOs expect to maintain headcount. Mantra of doing more with less alive and well. 9

10 C-Suite: ROI Expectations 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% On investing in any technology, what would be the timeframe by which you expect the investment to start giving a positive ROI? 31% 25% 32% 31% 11% 15% 11% 26% 42% CIO & IT CFO & Finance CMO & Marketing Is dependent on the investment After 5 years Between 4-5 years Between 3-4 years Between 2-3 years Between 1-2 years Between 6 months and under 1 year Less than 6 months CIO and CFOs are well aligned in expectations around ROI. CMOs are a different story with 42% expecting <6month ROI. This is often due to the nature of discrete projects 10

11 CIO: Sentiment Indicate your view of business prospects Animal Spirits From today % % +6.5% In 6 months % % +6.2% 11

12 CFO: IT & Marketing under pressure If your organisation cuts overall expenses, which areas do you expect will see the largest percentage budget decrease? Administration & Operations Marketing Manufacturing or Product Creation IT Finance/ Accounting Research & Development/ Engineering Sales Executive Management Customer Service & Support 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 12

13 CFO: Big Data, Cloud, Mobile in focus How would you deliver growth through technology? Business analytics/ data Cloud computing/ services Implement Mobile Channel Collaboration tools and/ or Self-service portal and Customer lifecycle 0% 5% 10% 15% 20% 25% 30% CFOs understand the power Big Data can bring to the business. It s tool to better understand customers. In CFO speak, Cloud computing is seen as a way to outsource functions without the adoption hump & lead time of outsourcing. Mobility s increasingly being viewed by the CFO as a way to increase productivity. 13

14 CMO trough 35% [Scorecard] Effectiveness of IT How would you rate the effectiveness of your IT department on a scale of 1 to 10? 30% 25% 20% 15% 10% CIO = 7.6 CFO = 6.9 CMO = 6.5 5% 0% CIO & IT CFO & Finance CMO & Marketing Perception Gap 14

15 C-Suite: What s ITs Problem? What would drive you to by-pass internal IT? 45% 40% 35% 30% Velocity is king especially for functions such as marketing. 25% 20% 15% 10% 5% 0% Lower cost alternative More rapid speed of deployment Limited internal IT skills Flexibility to Customer care / accommodate to experience custom requests For CIOs lacking IT skills is the biggest driver to outsource. A rigid IT is still a big driver for bypassing. CIO & IT CFO & Finance CMO & Marketing 15

16 Conclusion There s a perception gap, this must be closed to remain relevant: Work on internal service delivery & increase all round communication. Work more closely with the LoB: Different skillsets for IT. IT must seek business skills over technical skills. Training is vital. Focus on driving innovation & new product/service creation with LoB. IT agility can be achieved through platform migration and infrastructure improvement, dedication to increase the quality of data, optimising IT delivery processes and building flexibility into service acquisition. Define your vision, then your strategy then communicate it! IDC Visit us at IDC.com and follow us on 16

17 Thank you Matt Oostveen Research Director IDC Australia L20, 8 Napier Street North Sydney, NSW Australia 2060 Follow me on