State of the CIO :: 2012 A Global Update. Adam Dennison VP/Publisher, CIO

Transcription

1 State of the CIO :: 2012 A Global Update Adam Dennison VP/Publisher, CIO CONTENT COMMUNITY CONVERSATION CONVERSION

2 Purpose and Methodology Survey Goal CIO s annual State of the CIO survey was conducted with the objective of understanding how the role of the CIO continues to evolve in today s business climate and to help define the CIO agenda for This definitive benchmarking survey, now in its 11 th year, measures the role of the CIO in the organization, budgetary responsibilities, business and leadership challenges, and the key skills needed for the job today. Survey Sample Survey Method Field Work Sept 12-21, 2011 Total Respondents 596 Margin of Error +/- 4.2% Audience Base CIO Forum on LinkedIn and CIO audience Collection Number of Questions Online Questionnaire 30 (incl. demographics) 2

3 Respondent Profile Total Respondents 100% involved in the purchase of IT products & services at their organization and Heads of IT. 596 Company Annual Revenues More than $1 billion 28% $100 - $999.9 million 38% Less than $100 million 28% Government/Non-profit/No answer 8% Top Represented Industries Government & Education 16% Manufacturing 16% Financial Services 13% Healthcare 11% High Tech, Telecom & Utilities 10% Business Decision-Makers Forrsights Business Decision-Makers Survey, Q4 2011, Forrester Research. Base: 377 North American respondents. Job Title Breakdown CIO/CTO 57% 8% 8% EVP/SVP/VP 27% Other General Manager/ Managing Director/Director 3

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5 Reporting Structure Strategically Aligned Reporting by Co. Size, Location & Industry 50% 40% 40% CIO reports to CEO 38% 30% 30% CIO reports to CFO 23% 20% 13% CIO reports to COO 14% 10% % of Heads of IT hold a seat on the Executive Committee Q. To whom do you report? Q. Are you a member of the business executive management committee? Enterprise: More than $1b company revenues SMB: Less than $999m company revenues 5

6 Reporting by Co. Size, Location & Industry CEO 43% CFO 38% 30% 28% 22% Enterprise SMB 6

7 Reporting by Co. Size, Location & Industry CEO 44% CFO 35% 24% 22% N. America Global 7

8 Reporting by Co. Size, Location & Industry 49% CEO 47% CFO 40% 37% 35% 28% 24% 23% 14% 11% Fin. Svcs. High Tech Healthcare Mfg. Govt. 8

9 Focus on Business Strategy Reestablished 60% 52% Transformational 53% 50% 40% 30% Functional 30% 23% 18% Business Strategist 20% 10% 0% Q: Choose five activities that best characterize your focus and how you spend your time in your current role. 10

10 BUSINESS STRATEGIST FUNCTIONAL TRANSFORMATIONAL CIO s Moving from Functional to Strategic yrs. Aligning IT initiatives with business goals 1 58% 1 60% 4 38% Implementing new systems and architecture 3 47% 3 49% 8 31% Cultivating the IT/business partnership 5 40% 4 43% 6 36% Leading change efforts 6 38% 6 38% 4 38% Redesigning business processes 7 33% 8 27% 7 33% Improving IT operations/systems performance 2 53% 2 53% 11 24% Cost control/expense management 4 45% 5 42% 13 15% Managing IT crises 8 26% 7 28% 15 5% Negotiating with IT vendors 8 26% 8 27% 14 10% Security management 11 22% 11 23% 12 16% Driving business innovation 10 25% 10 26% 1 53% Developing and refining business strategy 12 21% 12 22% 3 40% Identifying opportunities for competitive differentiation 13 17% 13 17% 2 43% Developing new go-to-market strategies & technologies 14 9% 14 12% 9 28% Studying market trends/customer needs to identify commercial opps. 14 9% 15 9% 10 27% Q. Which of the following activities best characterize your focus and how you spend your time in your current role? Q. Which of the following activities would you like to spend more time on in the next 3-5 years? 11

11 BUSINESS STRATEGIST FUNCTIONAL TRANSFORMATIONAL Company Size Has Little Impact on Role Enterprise SMB Aligning IT initiatives with business goals 1 60% 1 61% Implementing new systems and architecture 5 48% 3 50% Cultivating the IT/business partnership 2 53% 6 41% Leading change efforts 6 42% 4 36% Redesigning business processes 7 30% 11 25% Improving IT operations/systems performance 3 50% 2 53% Cost control/expense management 3 50% 4 40% Managing IT crises 10 20% 8 29% Negotiating with IT vendors 11 19% 7 28% Security management 11 19% 10 24% Driving business innovation 8 26% 9 26% Developing and refining business strategy 9 23% 12 22% Identifying opportunities for competitive differentiation 13 18% 13 18% Developing new go-to-market strategies & technologies 14 10% 14 13% Studying market trends/customer needs to identify commercial opportunities 15 7% 15 10% SMB: Less than $999m company revenues; Enterprise: More than $1 b company revenues Q. Which of the following activities best characterize your focus and how you spend your time in your current role? 12

12 CIO Role Transforms to Meet New Enterprise Market Dynamics Study Market Trends For Commercial Opportunities 300 Identify Opportunities Competitive Differentiation 253 Develop New Go-To Market Strategies/Technologies 233 Drive Business Innovation 204 Develop/Refine Business Strategy 182 Redesign Business Processes 122 Lead Change Efforts Cultivate IT/Business Partnership Security Management Align IT/Business Goals Implement New Systems/Architectures Improve IT Operations/System Performance Negotiate with Vendors Cost Control/Expense Management Manage IT Crises Q: Which of the following activities best characterize your focus and how you spend your time in your current role? Q. Which of the following activities would you like to spend more time on in the next 3-5 years? 13

13 Strategic Role More Prevalent in Emerging Markets Tenure Member of EC 5.57 years 5.48 years 4.83 years 4.94 years 4.08 years 66% 90% 79% 58% 69% North America Central/South America Africa/Middle East Europe Asia Pacific 14 Transformational Strategic Functional 54% 22% 24% 48% 29% 24% 50% 25% 25% 56% 22% 22% 42% 32% 26% Reports to CEO Reports to CFO 36% 24% 52% 10% 50% 4% 41% 33% 46% 18%

14 Top Non-IT Responsibilities Include Strategy and Risk 57% Responsible for one of more non-it area of the business Responsible for any of the following non-it areas of business 2012 North American Global Security 29% 29% 28% Strategy 23% 20% 30% Risk Management 17% 14% 21% Administration/Operations 15% 14% 17% Customer Service 12% 8% 18% Procurement 10% 10% 10% Engineering 8% 8% 8% Line of Business (as head) 6% 4% 11% Logistics/Supply Chain 6% 4% 8% Finance/Accounting 5% 4% 7% Human Resources 4% 3% 5% Marketing 4% 3% 5% Sales 4% 3% 4% Environmental Sustainability 3% 3% 4% Mergers & Acquisitions 3% 3% 3% Manufacturing/Production 3% 2% 4% Other 11% 11% 10% None of the above 43% 46% 39% Q: In your current position, are you also responsible (in a leadership capacity) for any of the following non-it areas of the business? 15

15 Cloud Still Leads Disruptive Technologies Technology as a service (cloud) 34% Mobility 25% Ubiquitous data (big data) 18% Consumerization of desktop/devices 13% Social Media/ Networking 11% North America Central/South America Africa/ Middle East Europe Asia Pacific Technology as a service 30% 43% 46% 41% 37% Mobility 28% 14% 29% 14% 26% Ubiquitous data (big data) 19% 5% 17% 20% 14% Consumerization of desktop/devices 14% 5% 0% 15% 12% Social media 10% 33% 8% 10% 11% Q: In your opinion, which of the following trends will have the most profound effect on the CIO role in the future? 16

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17 Macro Economics Fuel IT s Focus IT Executives Your industry s business outlook 8% 21% 38% 32% Your organization s business outlook 13% 21% 31% 34% Your team's/ division s performance against metrics/goals 27% 36% 21% 15% A very good year A somewhat good year A somewhat challenging year A very challenging year Q: How would you rate the following over the next 12 months? 18

18 LOB Understanding of IT will Accelerate Value Broader understanding of IT by non-it colleagues 77% 9% 9% 4% Growing economic strength in emerging economies such as China and India 40% 33% 22% 6% Growing threat to enterprise security 17% 10% 69% 4% Stagnant U.S. job growth 10% 29% 57% 5% Global recession 6% 9% 82% 3% Positive impact (net) No impact Negative impact (net) Not sure Q: How do you anticipate the following business and economic issues will impact your organization within the next 3 years? 19

19 Global CIOs More Positive than North American CIOs Broader understanding of IT by non-it colleagues North American 77% 11% 8% 4% Global 77% 7% 11% 6% Growing economic strength in emerging economies such as China and India North American 31% 39% 24% 5% Global 55% 20% 19% 6% Growing threat to enterprise security North American 13% 8% 77% 3% Global 25% 14% 54% 7% Stagnant U.S. job growth North American 10% 18% 69% 3% Global 11% 48% 33% 8% Global recession North American 5% 9% 83% 3% Global 8% 8% 81% 3% Positive impact (net) No impact Negative impact (net) Not sure Q: How do you anticipate the following business and economic issues will impact your organization within the next 3 years? 20

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21 Improving Productivity More Important than Lowering Costs IT's most significant business accomplishments in the year ahead 2012 Enterprise SMB Improve end-user workforce productivity 47% 42% 48% Re-engineer core business processes 39% 39% 38% Improve quality of products and/or processes 35% 28% 38% Lower the company's overall operating costs 32% 38% 29% Innovative new market offerings or business practices 28% 30% 29% Improve security/risk management 27% 25% 26% Support global expansion 19% 31% 15% Manage customer relationships 19% 18% 19% Acquire and retain customers 16% 14% 17% Enable regulatory compliance 13% 14% 13% SMB: Less than $999m company revenues; Enterprise: More than $1 b company revenues Q: What do you anticipate will be IT's most significant business accomplishments in the year ahead? (select 3) 22

22 BI, Mobility Are Next Big Initiatives Completed within past year Expect to complete within next year New BI & analytics initiative(s) 27% 49% Mobility 29% 48% SaaS or cloud services/solutions 28% 40% Global applications rollout (e.g., ERP, BPM, CRM, SCM) 36% 37% IT/marketing (social media) 24% 35% Ecommerce/digital strategy 16% 23% None of the above 14% 5% Jan. Jan. Jan Q: Has your IT organization recently completed (in the past year) or will it complete any major initiatives within the next year in the following areas? 23

23 Initiatives Change by Geo BI & Analytics 51% 52% 33% 42% 52% Ecommerce 22% 29% 25% 26% 22% Global Applications rollout 34% 57% 33% 38% 42% % change: 27% 14% 16% 7% 20% % change: 7% 0% 8% 7% 8% % change: 1% 19% -13% -6% 2% Mobility 48% 67% 50% 36% 55% SaaS/Cloud 43% 33% 33% 41% 28% Social Media 37% 62% 21% 24% 40% % change: 19% 43% 17% 6% 29% % change: 11% 0% 20% 18% 5% % change: 9% 43% -4% 11% 23% North America Central/South America Africa/Middle East Europe Asia Pacific Q: Has your IT organization recently completed (in the past year) or will it complete any major initiatives within the next year in the following areas?* 24 ; note: *Answers shown are expect to complete within the next year, and % change from completed in past year)

24 External Services to Increase 2012 Total North American Global 20% 23% 28% 2012 Total North American Global 35% 32% 40% Q. What percent of your organization's IT services are currently provided by 3rd parties including outsourcers and cloud service providers? What percent of your organization's IT services do you anticipate will be provided by 3rd parties including outsourcers and cloud service providers within the next 3-5 years? 25

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26 CIO Recognizes Need to Shift Costs Business Issues Critical/High Priority For IT Executives Critical/High Priority For Business Decision-Makers The need to improve the capabilities of your products/services 83% 87% Increasing expectations from customers 81% 86% Rising pressure to reduce costs 62% 84% Reducing IT operational costs to free up money for new technology development and product/service innovation The accelerating rate of technology change and its effect on your product/service life cycles 60% 43% 56% 60% Competition against your products/services 47% 78% The changing demographics of your workforce and finding good employees The quality of technology infrastructure in your local market (e.g., voice, data) 49% 59% 42% 44% Rising regulations in your industry and/or government involvement 45% 55% Global Difference: 54% Global CIOs are critically/highly concerned with the quality of technology infrastructure in local market. Q: How concerned is your organization with the following business issues? 28 ; Business Decision-Makers data supplied from Forrester source: Forrsights Business Decision-Makers Survey, Q4 2011

27 IT / LOB Priorities are in Sync IT Management Initiatives Critical/High Priority For IT Executives Critical/High Priority For Business Decision-Makers Improve business processes (e.g., supply chain mgmt, hr mgmt) 63% 60% Increase IT capacity/ resources to drive business innovations 62% 54% Improve IT's on-time and on-budget performance with more process discipline in areas like requirements gathering and project management 54% 50% Develop a strategy for improving security and risk mitigation 59% 54% Measure IT's impact on the business' performance 51% 34% Increase the scope of IT's centralized or shared services to improve efficiency 53% 44% Market the IT department so the business has a better understanding of IT's capabilities and processes 55% 24% Lower IT's operational costs to free up money for new initiatives 48% 45% Invest in systems that help us engage with customers or business partners by reducing spending on core systems like accounting or ERP 45% 49% Create a comprehensive mobile and tablet app development and adoption plan 47% 41% Create a comprehensive software-as-a-service and cloud/as-a-service adoption/ migration plan 32% 34% Global Difference: 71% of Global CIOs rank increase IT capacity/ resources to drive business innovations as the top priority.. Q: Which of the following IT management initiatives will be a priority for your IT organization over the next 12 months? 30 ; Business Decision-Makers data supplied from Forrester source: Forrsights Business Decision-Makers Survey, Q4 2011

28 Slight Majority Recognize IT as Strategic Partner Cost center Service provider 21% 27% IT partner Business peer 15% Business game-changer 7% 30% Q: In general, how would you best characterize the way your company s business stakeholders perceive the IT organization currently? (Please select one only) 31

29 Multiple Stakeholders Being Brought In Actions taken to solidify or elevate IT s relationship with business stakeholders Met more frequently with influential stakeholders 1 62% 1 59% Fixed major problems with systems operations 2 50% 2 51% Delegated more IT operations to trusted lieutenants 7 35% 3 46% Created quick wins for business partners 3 44% 4 44% Trained IT staff to partner better with business stakeholders 6 36% 5 41% Initiated new products and services for competitive advantage 4 40% 6 40% Created a portfolio approach to IT 5 37% 7 39% Developed IT leadership capabilities in senior managers 9 28% 8 38% Developed a cross-functional focus among IT managers 8 32% 9 36% Cultivated a relationship with a board member 10 25% 10 29% Trained IT staff to focus on external customers 10 25% 11 28% Created a project management office 10 25% 12 27% Called on customers 13 18% 13 23% Deepened staff bench strength in management/leadership expertise 14 15% 14 18% Q: Which of the following actions have you taken in the past year to solidify or elevate IT s general relationship with business stakeholders? 32

30 First Focus on Customer Service Business Processes Being Improved by IT 2012 North American Global Customer service/support 1 58% 1 60% 2 54% Accounting & finance 2 57% 2 56% 1 58% Human resources 42% 43% 39% Sales 36% 31% 43% Supply chain/logistics 36% 29% 48% Order/invoice processing 35% 33% 38% Inventory management 33% 31% 36% Compliance 31% 32% 29% Asset management/maintenance 9 30% 7 31% 8 29% Marketing 10 29% 5 32% 12 23% Risk management 11 28% 11 28% 8 29% Order fulfillment 12 26% 12 25% 11 27% Research & development/product development 13 19% 13 20% 14 18% Manufacturing 14 17% 14 15% 13 20% Q: Which business processes are you currently improving with IT? (Please check all that apply.) 33

31 Conclusions CIOs continue to shift their focus toward Business Strategy and 2012 is a tipping point in that journey. Macro economics are a concern, however transformative efforts continue unabated and enterprise security is a top concern in transformation. CIOs are broadening their scope of responsibility beyond IT across the enterprise. Tech initiatives now broaden beyond cloud to Mobile and Analytics however differences lie in global geo s. Business strategy is now table stakes for CIO s and they are driving that approach across today s IT organizations. 34

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34 IT Budget as Percentage of Revenue Q. What percent of your company's total revenue does the IT budget represent? 40