Presentation on the 10th International Symposium on Business Information Systems, Győr, Hungary IT department of the Hungarian enterprises had to deal with several challenges in the last 5 years of the economic crisis: inevitable cost reduction, crisis solutions, limited IT development opportunities. The Corvinus University of Budapest conducts a research since 2009 among IT conscious enterprises, analysing the change of IT budgets, applied crisis solutions, development areas, perceived role of IT, IT strategy, IT infrastructure and service management practice. Beside using survey results, the practice of selected enterprises was explored via case-study methodology, therefore research results are based on both quantitative and qualitative methods. Research results indicate a patience waiting behaviour of the enterprise, and showing a hopeful attitude. In the case of IT budgets, close to 40% of enterprises applied no change comparing to the last year’s budget, and additional 50% changed it only slightly, even increasing or decreasing the volume. As average, the size of IT budget is practically did not change. Comparing to the last 4 years, this is a first year, where no average decrease in IT budgets were found, although there is no sign of growth. In this situation there is no need for exceptional crisis measures: decreasing salaries of IT employees or layoffs are far not so common as before. The goal of most widespread measures is to enhance internal effectiveness, including better business case development, more conscious financial analysis of IT projects, renegotiating supplier contracts and rationalising IT services. The planning period of IT strategies did not change over the researched years: it is still around 3 years, while ~80% of the enterprises have formal IT strategy. The most targeted development area is still related to IT operations, enhancing operational practice, among two-thirds of the enterprises. Mobility developments becase second and 45% of enterprises indicated plans on this area. Meanwhile enterprises plans fewer projects in other areas. Cloud-related developments dropped by almost 50% comparing to last year, and IT service management plans are also decreased to 26%

1. Partners:
HOPE?
ANALYSING ENTERPRISE IT
P RACTICES IN H UNGARY
2 0 0 9 - 2 0 1 3
Dr. Péter Fehér
pfeher@informatika.uni-corvinus.hu
Dr. Zoltán Szabó
szabo@informatika.uni-corvinus.hu
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

2. The economic crisis is still not over –
at least not in Hungary
Source:
Fehér, P (2009) The Challenge of IT in Downturn,
OGIK Conference, Győr
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

3. Partners:
IT Budget
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

4. 3 Years Delay in the Stabilization of the IT Budgets
2009
2010
2011
2012
1%
0,5%
2013
0,01%
-0,50%
-1,1%
-1,8%
-2,9%
-4%
-8,1%
International
Hungary
-11,3%
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

5. IT budgets did not change radically
(2012-2013)
30%
60%
50%
40%
31%
2013
30%
+0.01%
39%
26%
24%
20%
10%
3%
0%
I T S M
Research
2013
4%
Decrease
(> 20%)
Decrease
(10-19%)
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
2%
Decrease
(1-9%)
Owners
State: 21%
Domestic: 31%
International: 48%
No change
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Increase
(1-9%)
3%
Increase
(10-19%)
Increase
(> 20%)
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

6. The change of IT budgets depends on the role of
corporate IT
Decreasing IT budget
Increasing IT budget
(5)
2013
(5)
(5)
2,26
3,70
3,02
IT is important in IT is critical part of
competitive
business products or
differentiation
services
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
(5)
Owners
State: 21%
Domestic: 31%
International: 48%
3,97
IT is important in IT is critical part of
competitive
business products or
differentiation
services
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

7. Share of IT operations increased in
IT budgets
100%
0%
90%
10%
37%
80%
70%
44%
20%
30%
60%
40%
50%
50%
40%
60%
30%
70%
20%
63%
56%
80%
10%
90%
0%
100%
IT operations 2012
I T S M
Research
2013
IT operations 2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
IT Developments 2013
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
IT developments 2012
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

8. Partners:
Reporting lines
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

9. IT is loosing its strategic importance
Reporting lines of the CIO (2010-2013)
60%
55%
56%
53%
50%
40%
40%
30%
21%
20%
20%
26%
23%
19%
13%
16%
14%
10%
0%
2010
2011
COO
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
2012
CEO
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
2013
CFO
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

10. IT departments under CFO supervision should suffer
strong cost control
IT budget as % of revenue
Change of IT Budget
IT Strategic planning
(years)
8,1%
1,9%
3,6
1,5%
2,9
5,3%
CEO
COO
2,8
CEO
COO
CFO
2,1%
CEO
I T S M
Research
2013
COO
-3,3%
CFO
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
CFO
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

11. CFO driven IT practice is cost controlled, and neglecting
innovation
CEO
3,96
COO
CFO
3,95
3,50
3,60
3,63 3,60
3,54
3,46
3,43
3,24
3,15
3,19
3,15
2,93
2,84
2,81
2,31
1,95
Role of IT is to
increase business
efficiency
I T S M
Research
2013
IT is critical for
Role of IT is to
IT is the main initiator
delivering business provide IT services in
of business
innovations
lowest cost
innovations
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
IT is important in
competitive
differentiation
Role of IT is to
decrease business
costs
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

12. IT cannot became a commodity for Hungarian
organizatons
15,38%
Share of organizations using mainly
outsourced IT services
8%
1,96%
No0%
data
2010
I T S M
Research
2013
2011
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
2012
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
2013
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

13. The popularity of corporate IT service centers
increased
14%
Share of organizations using mainly
corporate IT service centers
9,15%
4,62%
2%
2010
I T S M
Research
2013
2011
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
2012
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
2013
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

14. Partners:
Role of IT
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

15. The tight relationship between Business and IT was only
temporary?
4,2
4
3,8
Business understands the
role of IT
3,6
Efficient partnership
between Business and IT
3,4
3,2
Basic IT services are
provided in the required
quality
3
2,8
2,6
2009
I T S M
Research
2013
2010
2011
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
2012
Owners
State: 21%
Domestic: 31%
International: 48%
2013
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

16. Business side perceives better cooperation
between Business and IT
+23%
+28%
4,08
4,08
3,31
3,2
IT
Business
Business understands the role
of IT
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Efficient partnership
between Business and IT
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

17. Partners:
Pressure and opportunity
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

18. There is a change in some crisis-measures
52%
Business feasibility plan based projects
51%
Renegotiate supplier contracts
45%
Service rationalisation
44%
Stop hiring new employees
34%
Postpone procurements
24%
Limited consulting contracts
23%
Limited development contracts
18%
Non-planned layoff
7%
Salary reduction
0%
2013
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
10%
2012
Owners
State: 21%
Domestic: 31%
International: 48%
20%
2011
30%
2010
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
40%
50%
60%
70%
2009
20
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

19. Planning for further measures decreased
since last year
26%
Renegotiate supplier contracts
25%
Limited development contracts
24%
Limited consulting contracts
22%
Business feasibility based projects
16%
Postpone procurements
9%
Non-planned layoff
8%
Stop hiring new employees
7%
Salary reduction
0%
2013
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
10%
2012
Owners
State: 21%
Domestic: 31%
International: 48%
20%
2011
30%
40%
2010
2009
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
50%
21
60%
70%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

20. There is a general decrease in further
development plans
66%
Operations optimalisazion
45%
Mobility*
38%
Process development
Change in operation models
27%
ITSM development
26%
IT risk management
25%
Cloud computing*
23%
Project management development
23%
19%
Open source
11%
Identity management*
0%
*New since 2012
I T S M
Research
2013
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
10%
2012
Owners
State: 21%
Domestic: 31%
International: 48%
20%
2011
2010
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
30%
2009
40%
50%
60%
70%
80%
Planned projects is 2013
22
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

21. Plans for cloud computing implementation dropped
drastically over a year
-44.1%
41%
23%
Share of companies planning
cloud computing projects in 2013
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
2012
Owners
State: 21%
Domestic: 31%
International: 48%
2013
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

22. Partners:
IT infrastructure and management
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

23. Main applications
ERP
77%
Document Management
67%
Groupware
53%
Workflow
47%
E-business
43%
Business Intelligence
43%
0%
I T S M
Research
2013
10%
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
20%
30%
Owners
State: 21%
Domestic: 31%
International: 48%
40%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
50%
60%
70%
80%
90%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

24. Application areas
Finance
Accounting
Executive Information Systems
Payroll
HRM
Inventory Management
Sales
Procurement
Logistics
Controlling System
Production/Manufacturing
Marketing
Technology Development
Quality Management
Organisational Development
85%
80%
72%
67%
63%
62%
60%
58%
53%
52%
50%
48%
43%
42%
32%
0%
20%
2013
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
40%
60%
80%
100%
2010
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

25. Decreasing importance of process innovation in IT
(BPM, BPR, Lean IT)
59%
Ratio of organizations initiating
process management projects
focusing on the IT function
57%
46%
34%
2009
I T S M
Research
2013
2010
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
2011
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
2012
38%
2013
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

26. Decreasing popularity of ITSM projects (ITIL, MOF)
Ratio of organizations initiating IT
service management projetst
46%
51%
49%
30%
26%
2009
I T S M
Research
2013
2010
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
2011
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
2012
2013
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

27. IT strategy
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

28. IT Strategy Planning
100%
90%
50%
40%
30%
20%
10%
Timeframe: 3,1 years
2009
60%
Timeframe: 2,9 years
78%
Timeframe: 2,9 years
74%
Timeframe: 2,7 years
70%
76%
83%
Timeframe: 2,9 years
80%
82%
2010
2011
2012
2013
0%
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

29. Major issues in IT strategy
74%
Application portfolio
68%
90%
60%
Procurement, Supplier policy
48%
65%
42%
Standards
44%
50%
54%
IT Controlling
53%
57%
46%
Risk Management
53%
49%
50%
Compliance
55%
52%
0%
20%
2013
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
40%
2012
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
60%
80%
100%
2011
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

30. Relationship between corporate and IT
strategy
Business
Strategy
IT Strategy
40%
Business
Strategy
25%
Business
Strategy
IT Strategy
18%
Business
Strategy
IT Strategy
17%
IT
I T S M
Research
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Ideas
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu

31. Conclusions
Still working in crisismode
Developments are
still suspended
I T S M
Research
2013
Share of
unintentional
measures decreased
over a year
Decreased interest
for ITSM
developments
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu