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A PEEK @
SIMposium
Panelists
p
4‐November‐2014
Bill Peterson, LiquidHub
Caren Shiozaki, Thornburg Mortgage
Jennie Zamberlan, Avantia
Joseph Pucciarelli, IDCJoseph Pucciarelli, IDC
Presenters
Leon Kappelman
Eph McLean
Vess Johnson
Comprehensive Report 
http://www simnet org/?ITTrendsStudyhttp://www.simnet.org/?ITTrendsStudy
1© 2014 SIM International & Leon Kappelman, Primary Investigator 
IT
TechnologiesTechnologies 
Organizations
Management
© 2014 SIM International and Leon Kappelman, Primary Investigator 
People
© 2014 SIM International and Leon Kappelman, Primary Investigator  3
IT Trends: The Research Project
• Focus is IT management in organizations• Focus is IT management in organizations
• Collaboration of academics and practitioners
• Population: SIM members (c4800 senior IT executives)• Population: SIM members (c4800 senior IT executives)
• Duration: 10 months, annually
• Deliverables: Reports (full personal) SIMposium MISQE• Deliverables: Reports (full, personal), SIMposium, MISQE
• SIM has specific objectives:
• Value proposition for existing membersValue proposition for existing members
• Create unique intellectual capital
• Publicity and branding: “SIM, the voice of IT leadership”
• Attract new members
• Academics have objectives too:
D t h t h l titi• Do great research to help practitioners
• Get access to amazing data for publications and teaching
© 2014 SIM International and Leon Kappelman, Primary Investigator  4
The SIM IT Trends Study Process
© 2014 SIM International & Leon Kappelman, Primary Investigator  5
THE BOTTOM LINE
Results show we’re in a time of profound change for business, 
technology, IT departments, and IT leadership.
• Focus of organizations and IT leaders changing. Emphasis 
technology, IT departments, and IT leadership.
on business value, strategy, innovation, and speed.
• How IT dollars are being spent is changing.
• How IT is being delivered in changing.
• With whom IT leaders spend their time is changing.
• What IT leaders do with their time is changing.
Not all organizations, CIOs, or C‐suite denizens will successfully 
k i h h h l f hi i i i dmake it through the gauntlet of this transition period.
“It is quite likely that the CIO position is the most complicated and
© 2014 SIM International & Leon Kappelman, Primary Investigator  6
It is quite likely that the CIO position is the most complicated and 
demanding job in organizations today. “ – 2015 SIM IT Trends Report
THE BOTTOM LINEChangingResults show we’re in a time of profound change for business, 
technology, IT departments, and IT leadership.
Changing
Thi k Bi• Focus of organizations and IT leaders changing. Emphasis 
technology, IT departments, and IT leadership.
Think Bigon business value, strategy, innovation, and speed.
• How IT dollars are being spent is changing.
Be Nimble• How IT is being delivered in changing.
• With whom IT leaders spend their time is changing.
Be Nimble
• What IT leaders do with their time is changing.
Not all organizations, CIOs, or C‐suite denizens will successfully 
k i h h h l f hi i i i d
Move Fastmake it through the gauntlet of this transition periods.
“It is quite likely that the CIO position is the most complicated and
Challenging
© 2014 SIM International & Leon Kappelman, Primary Investigator  7
It is quite likely that the CIO position is the most complicated and 
demanding job in organizations today. “ – 2015 SIM IT Trends ReportChallenging
2015 theme song:2015 theme song: 
“The times they are a‐changin’” 
“If your time to you is worth savin’;If your time to you is worth savin ; 
Then you better start swimmin’ or you’ll 
sink like a stone; For the times they are 
a‐changin’”a‐changin .  
– Bob Dylan
© 2014 SIM International & Leon Kappelman, Primary Investigator  8
2015 SIM IT Trends Study
• 35th Anniversary of SIM IT Trends 
Study
• 1002 complete responses is the largest 
sample since study began in 1980
• 717 unique “Organizations” 
represented by a “Senior IT Leader”
451 “CIO ” i th l• 451 “CIOs” in the sample
• Average revenue of 717 is $5.6 billion
• Total revenue $4 trillion or 25 percent• Total revenue $4 trillion or 25 percent 
of the U.S. economy’s GDP.
• Average IT budget of 717, $287 millionAverage IT budget of 717, $287 million
• $200 billion in 2014 IT spending.
© 2014 SIM International & Leon Kappelman, Primary Investigator  9
35th Anniversary SIM IT Trends Study
Organization Trends:
IT Spending, Staffing, and Structure
“We shape our buildings; thereafter they shape us ” Winston ChurchillWe shape our buildings; thereafter they shape us. – Winston Churchill
© 2014 SIM International & Leon Kappelman, Primary Investigator  10
IT Organization Structure 2006 ‐ 2014
2006 2007 2008 2009 2010 2011 2012 2013 2014
74%
77%80%
90%
2006 2007 2008 2009 2010 2011 2012 2013 2014
74%
69%
72%
69%
66%
63%
65%
71.1%
60%
70%
80%
37%
35%40%
50%
60%
26%
23%
31%
28%
31%
34%
37%
35%
28.9%
20%
30%
40%
0%
10%
20%
717 U i O i i R i
0%
Centralized Decentralized/Federated/Hybrid
9 yr. average: 69.7% 30.3%
11© 2014 SIM International & Leon Kappelman, Primary Investigator
717 Unique Organizations Reporting
Percentage of Revenue Allocated to IT Budget
6%
4.9% 4.9%
5.1%
5%
3.6% 3.6% 3.5%
3.8% 3.8% 3.9%
3.6%
4%
Average 4.08%
3%
2%
1%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
12© 2014 SIM International & Leon Kappelman, Primary Investigator
493 Unique Organizations Reporting
Change in IT Budget from Previous Year 
2004 – 2014 (actual) 2015 (projected)
60%
70%
2004  2014 (actual) 2015 (projected)
Average (median) Increase
2014:   1.9% (2%) actual 
2015 0 9% (1%) j t d
52%
63%
61%
48%
56%46%
61%
57%
63%
51%
52%
50%
60%2015:   0.9% (1%) projected
48%
34%
25%
52%
30%
40%
30%
24%
27%
35%
35%
26%
22%
20%
21%
20%
20%
30%
17%
20%20%
0%
10%
Increased No Change Decreased
0%
2015 
projected
20142013201220112010200920082007200620052004
Increased No Change Decreased
13© 2014 SIM International & Leon Kappelman, Primary Investigator
Unique Organizations Reporting: 2014 = 512; 2015 = 485
IT Budget Allocation 
2014 Actual and 2015 Projected2014 Actual and 2015 Projected
% Allocated to 
Category
Projected
Percentage of Organizations 
Projecting 2015 Allocations
Average (median) Increase
( ) l
Budget Categories
g y
Projected 
Change 
2014‐2015
Projecting 2015 Allocations 
Will:2014 
Actual
2015 
Projected Decrease Flat Increase
Hardware 15.7% 15.4% ‐0.3% 25% 66% 10%
2014:   1.9% (2%) actual 
2015:   0.9% (1%) projected
Software 17.9% 17.6% ‐0.3% 18% 67% 14%
Facilities (including supplies and 
5 6% 5 4% 0 2% 13% 82% 5%
( g pp
consumables)
5.6% 5.4% ‐0.2% 13% 82% 5%
Employees 38.5% 38.8% 0.3% 13% 68% 19%
Consultants 6.5% 6.1% ‐0.4% 12% 77% 11%
Contractors 5.8% 5.4% ‐0.4% 12% 81% 7%
Increase in budget 
Services (SaaS, PaaS, IaaS, cloud, 
processes, etc.)
10.1% 11.3% 1.2% 6% 68% 26%
Decrease in budget 
14© 2014 SIM International & Leon Kappelman, Primary Investigator
366 Unique Organizations Reporting
projected 2014‐2015  projected 2014‐2015 
IT Budget Allocation 
2014 Actual and 2015 Projected
% Allocated to 
Category
Projected
Percentage of Organizations 
Projecting 2015 Allocations
2014 Actual and 2015 Projected
Average (median) Increase
( ) l
Magnitude 
of change
Budget Categories
g y
Projected 
Change 
2014‐2015
Projecting 2015 Allocations 
Will:2014 
Actual
2015 
Projected Decrease Flat Increase
Hardware 15.7% 15.4% ‐0.3% 25% 66% 10%
2014:   1.9% (2%) actual 
2015:   0.9% (1%) projected
of change 
in $s of 
spending
‐0.83%
Software 17.9% 17.6% ‐0.3% 18% 67% 14%
Facilities (including supplies and 
5 6% 5 4% 0 2% 13% 82% 5%
‐0.59%
2 51%
( g pp
consumables)
5.6% 5.4% ‐0.2% 13% 82% 5%
Employees 38.5% 38.8% 0.3% 13% 68% 19%
‐2.51%
1.89%
Consultants 6.5% 6.1% ‐0.4% 12% 77% 11%
Contractors 5.8% 5.4% ‐0.4% 12% 81% 7%
‐5.12%
‐5.87%
Services (SaaS, PaaS, IaaS, cloud, 
processes, etc.)
10.1% 11.3% 1.2% 6% 68% 26%
Decrease in budget Increase in budget 
13.11%
15© 2014 SIM International & Leon Kappelman, Primary Investigator
366 Unique Organizations Reporting
projected 2014‐2015 projected 2014‐2015 
IT Budget Allocation 
2009 2014 (actual) and 2015 (projected)2009‐2014 (actual) and 2015 (projected)
Projected 
2009‐14 
Average j
Change 
2014‐2015
2015 
Projected  2014 2013 2012 2011 2010 2009
g
(weighted 
to 100%)
2009‐14 
Average
Employees 0.3% 38.8% 38.5% 40.3% 40.0% 40.0% 46.0% 43.0% 38.1% 41.3%p y
Contractors ‐0.4% 5.4% 5.8% 9.5% 11.0% 5.0% 12.0% 12.0% 8.5% 9.2%
Consultants ‐0.4% 6.1% 6.5% 3.1% 9.0% 11.0% 10.0% 12.0% 7.9% 8.6%
Hardware, 
0 8% 38 4% 39 2% 47 1% 40 0% 44 0% 32 0% 33 0% 36 2% 39 2%
,
Software, Facilities
‐0.8% 38.4% 39.2% 47.1% 40.0% 44.0% 32.0% 33.0% 36.2% 39.2%
Cloud Services 1.2.% 11.3% 10.1% 9.3% 10.1%
Increase in budget 
projected 2014‐2015
Decrease in budget 
projected 2014‐2015
16© 2014 SIM International & Leon Kappelman, Primary Investigator
366 Unique Organizations Reporting
IT Budget Allocation 
2009‐2014 (actual) and 2015 (projected) with Trendlines2009‐2014 (actual) and 2015 (projected), with Trendlines
50%
40%
30%
Employees
Hardware, Software, Facilities
Contractors
20%
Contractors
Consultants
Cloud Services
10%
0%
2015 Projected 201420132012201120102009
17© 2014 SIM International & Leon Kappelman, Primary Investigator
366 Unique Organizations Reporting
Change in Average IT Salary
Projected 
2014 15
Actual
Average Increase 
2014:   2.03% actual
2015:   1.32% projected
20.7%
2014‐15
7.0%
2013‐14
%
14.0%
9.5%
69.8%
79 0%79.0%
18© 2014 SIM International & Leon Kappelman, Primary Investigator
Unique Organizations Reporting: 2013‐14 = 499; 2014‐15 = 474
IT Employee Annual Turnover Rates
10.00%
2014
9.0%
8 00%
9.00%
2014
• Involuntary = 3%
• Voluntary = 6%
• Retire = 1 4%
5 8%
6.4%
7.1%
6.6%
6 00%
7.00%
8.00%
9‐year average 6.26%
• Retire = 1.4%
• Options = 4.6%
5.8%
5.2%
5.5% 5.5%
5.2%
5.00%
6.00%
3.00%
4.00%
1.00%
2.00%
0.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014
19© 2014 SIM International & Leon Kappelman, Primary Investigator
539 Unique Organizations Reporting
Percentage of IT Budget Spent
on Training & Educationon Training & Education
4 7%
5.0%
5%
6%
3.5%
4.7%
4%
5%
Average 3.72%
3.1% 3.2%
2.9%3%
2%
1%
0%
2009 2010 2011 2012 2013 2014
20© 2014 SIM International & Leon Kappelman, Primary Investigator
537 Unique Organizations Reporting
Percent of All IT Delivered by Cloud 
18%
16%
18%
• 31.1% of all IT services are cloud‐based (up from 26.5%) 
• Cloud‐based IT is delivered via
12%
14% • internal private capabilities = 45%
• external public capabilities = 55%
• 9.5% don’t use cloud at all, down from 19%
90 5% ili “ h l d” ( f 81% i 2013)
8%
10%
spondents
• 90.5% utilize “the cloud” (up from 81% in 2013)
Average 31.1%
6%
8%
Res
g
2%
4%
0%
0 >0‐5 >5‐10 >10‐20 >20‐30 >30‐40 >40‐50 >50‐60 >60‐70 >70‐80 >80‐90 >90‐100
Percentage of Cloud‐based Services
21© 2014 SIM International & Leon Kappelman, Primary Investigator
g
528 Unique Organizations Reporting
Percent of All IT Delivered as Shared Service
25%
• 46.9% of all IT delivered as shared services (down from 56.4%)
• IT Shared Services is delivered via
• internal private capabilities = 62.2%
20%
internal private capabilities   62.2%
• external public capabilities = 36.1%
• other = 1.7%
• 16.6% don’t use shared services at all
15%
ndents
Average 46.9%
10%
Respon
5%
0%
0 >0‐10 >10‐20 >20‐30 >30‐40 >40‐50 >50‐60 >60‐70 >70‐80 >80‐90 >90‐100
Percentage of IT as Shared Service
22© 2014 SIM International & Leon Kappelman, Primary Investigator
Percentage of IT as Shared Service
452 Unique Organizations Reporting
Top 5 IT Performance Measures 
for In‐House IT and Outsourced ITfor In House IT and Outsourced IT
Used for: Internal IT
2014
External IT
2014
Rank  Rank Performance Measures 
Availability 1 1IT
User satisfaction 2 7
Value of IT to the business 3 10
Business 
Business 
Projects Delivered on Time 4 2
Help Desk Performance  5 12IT
IT
Projects Delivered on Budget  7 5
SLA Target Compliance  17 4IT
IT
None 27 3xxx
23© 2014 SIM International & Leon Kappelman, Primary Investigator
451 CIOs Reporting
Sorted by internal IT importance rankings
IT Alignment, Credibility, and Role in Strategy and Innovation
24© 2014 SIM International and Leon Kappelman, Primary Investigator
“It is not the most intellectual of the speciesIt is not the most intellectual of the species 
that survives; it is not the strongest that 
survives; but the species that survives is the 
one that is able to adapt to and to adjust 
best to the changing environment in which it 
finds itself.”finds itself.
– Leon Megginson (describing Charles Darwin’s findings)
© 2014 SIM International & Leon Kappelman, Primary Investigator  25
35th Anniversary SIM IT Trends Study
CIO Trends
"The first responsibility of a leader is to define reality; the last is to say 
'Thank you.'  In between the two, the leader must become a servant.”
M D P– Max De Pree
© 2014 SIM International & Leon Kappelman, Primary Investigator  26
7  Average Job Tenure of CIOs (in years)
5 10
5.96 
5 20
5.41
6 
4.10 
4.30 
4.60 
5.10 
4.45 
5.20 
4
5  Average 4.75
3.60 
3 
4 
2 
‐
1 
‐
2006 2007 2008 2009 2010 2011 2012 2013 2014
© 2014 SIM International & Leon Kappelman, Primary Investigator  27
2014 = 451 CIO Respondents
To Whom the CIO Reports To: 2014 
44.2%CEO/President
25.7%CFO/Treasurer
15.0%COO
9.4%
Business Unit 
Executive
5.8%Other
28© 2014 SIM International & Leon Kappelman, Primary Investigator
448 CIOs Reporting
To Whom the CIO Reports To, 2005 ‐ 2014 
50%
CEO CFO COO SBU Other
40%
45%
CEO CFO COO SBU Other
CEO
30%
35%
40%
25%
30%
CFO
15%
20%
COO
5%
10% SBU
Other
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
29© 2014 SIM International & Leon Kappelman, Primary Investigator
CIOs with a Seat at the Strategy Table 
I am on the top management team that makes strategic business decisions
55%
60%
I am on the top management team that makes strategic business decisions. 
40%
50%
21%
30%
9% 9%
21%
20%
5%
9% 9%
1%
0%
10%
1 Strongly 
Disagree
2 Disagree 3 Neither Agree 
nor Disagree
4 Agree 5 Strongly 
Agree
Don't Know or 
N/A 
30© 2014 SIM International & Leon Kappelman, Primary Investigator
364 CIOs Reporting
Last Position Before Becoming CIO (2010‐2014)
70%
54%
62%
53%
59%
62%
60%
2010
38% 37%40%
50%
2011
2012
31%
37%
32%
28%30%
2013
2014
20%
4% 4%4% 3%
5% 5%5% 4%3%
7%
0%
10%
Withi O i ti IT O t id O i ti IT Withi O i ti N IT O t id O i ti N ITWithin Organization, IT Outside Organization, IT Within Organization, Non‐IT Outside Organization, Non‐IT
Average  33.1% 58.1% 4.2% 4.7%        
31© 2014 SIM International & Leon Kappelman, Primary Investigator
451 CIOs Reporting
Top 10 Performance Measures for CIOs 
%  selecting Rank 
Value of IT to the business 40.80% 1Business
User satisfaction 29.94% 2
IT's contribution to strategy 27.72% 3Business
Business
Innovative new ideas 20.18% 4
Availability 18.63% 5
Business
IT
Projects Delivered on Time 17.74% 6
IT Cost controls 13.30% 7
IT
IT
Productivity improvement 12.20% 8
Business Cost Reduction Controls 9.53% 9Business 
Business 
Revenue Growth 9.53% 9Business 
32© 2014 SIM International & Leon Kappelman, Primary Investigator
451 CIOs Reporting
Top 10 IT Performance Measures 
for Personal (CIOs) Compared to Internal ITfor Personal (CIOs) Compared to Internal IT
Used for:
Personal CIO
2014
Rank
Internal IT
2014
RankPerformance Measures Rank  Rank Performance Measures 
Value of IT to the business 1 3
User satisfaction 2 2
Business
Business
IT's contribution to strategy 3 9
Innovative new ideas 4 16
Business
Business
Availability 5 1
Projects Delivered on Time 6 4
IT
IT
IT Cost controls 7 8
Productivity improvement 8 6
B i C t R d ti C t l 9 10
IT
B i
Business 
Business Cost Reduction Controls 9 10
Revenue Growth 9 15Business 
Business 
33© 2014 SIM International & Leon Kappelman, Primary Investigator
451 CIOs Reporting
Sorted by Personal (CIOs) IT importance rankings
With Whom do CIOs Spend Their Time? 
Average Percent of a CIO’s Time Spent Working with …
0% 10% 20% 30% 40%
19.8%
20.5%
C‐Level (non‐IT) personnel
Business (non‐IT and non‐C‐Level) personnel
30.3%IT employees within your organization
IT contractors vendors and service suppliers
8.0%
6.0%
IT contractors, vendors, and service suppliers 
(who are not employees of your organization)
External customers and/or suppliers of your 
organization
2.8%
o ga at o
IT personnel of external customers and/or 
suppliers of your organization
IT ll id f i i 4.3%
7.8%
IT colleagues outside of my organization
Working Alone
34
0.5%Other 305 CIO Respondents
© 2014 SIM International & Leon Kappelman, Primary Investigator
With Whom do the CIOs Spend Their Time? 
35© 2014 SIM International & Leon Kappelman, Primary Investigator
305 CIOs Reporting
Percentage of CIOs Interacting with …
How Do CIOs Spend Their Time?
e ce tage o C Os te act g t …
© 2014 SIM International & Leon Kappelman, Primary Investigator  36
What Do CIOs Do with Their Time?
% selecting an activity
Activities Performed by CIOs: 
% selecting an activity 
(standardized to 100%)
IT Business
Business priorities, strategy, architecture 8.1%
i i i / 8 0%IT priorities/strategy 8.0%
Managing organizational change 6.8%
Non‐IT‐related activities 5.1%
Evangelist for the business 4.8%Evangelist for the business 4.8%
Business research 5.1%
IT Evangelist 5.9%
IT Governance 5.4%
IT h d l 4 7%IT human resources and talent management 4.7%
IT operations/facilities management 5.1%
Knowing the needs of IT customers 6.6%
Knowing the needs of customers of the business 6.5%o g e eeds o cus o e s o e bus ess 6 5%
Project management 6.7%
Software development 4.1%
Technical research 5.9%
R ll ti /b d ti 6 0%Resource allocation/budgeting 6.0%
SUB TOTALS 51.7% 42.9%
Managing my personal network 5.4%
TOTAL 100.0%
© 2014 SIM International & Leon Kappelman, Primary Investigator  37
Top 10 Skills for CIO Success 
Most Important Skills %  selecting Rank 
Providing leadership 34 3% 1Providing leadership 34.3% 1
People management / relationships 29.5% 2
Strategic planning 23.7% 3Strategic planning 23.7% 3
Decision making 23.4% 4
Communication (oral) 20.8% 5( )
Collaboration with others / teamwork 20.2% 6
Emotional intelligence 16.0% 7g
Honesty / credibility  15.4% 8
Business analysis  11.9% 8y
Change management  11.2% 10
© 2014 SIM International & Leon Kappelman, Primary Investigator  38
312 CIOs Reporting
Most Important Skills for Success as an IT Professional
(New Hires, Mid‐Management and CIOs) ( , g )
50%
Providing 
leadership 
CIO
IT Middle Management
New IT Hires
Top 5 for each
Sorted by CIO importance rankings
30%
35%
40%
45%
50%
People 
management / 
relationships 
Functional area 
knowledge 
10%
15%
20%
25%
30%
Strategic Technical 
Career paths
0%
5%
10%
g
planning knowledge 
Decision MakingProblem solving 
Core skills
Communication 
Collaboration 
with others /
(oral) 
with others / 
teamwork 
© 2014 SIM International & Leon Kappelman, Primary Investigator  39
312 CIO Respondents
Most Important Skills for Success as an IT Professional
(New Hires, Mid‐Management and CIOs) ( , g )
45%
50%
CIO IT Middle Management New IT Hires
30%
35%
40%
15%
20%
25%
5%
10%
0%
Top 10 for each
S t d b N IT Hi i t ki
© 2014 SIM International & Leon Kappelman, Primary Investigator  40
312 CIO Respondents
Sorted by New IT Hires importance rankings
“In a time of drastic change it is the 
l h i h i h f Thlearners who inherit the future. The 
learned usually find themselves y f
equipped to live in a world that no 
longer exists ”longer exists.” 
– Eric Hoffer
© 2014 SIM International & Leon Kappelman, Primary Investigator  41
35th Anniversary SIM IT Trends Studyy y
IT Management Issues 
and Investments
“We are entering a period of consequences.  We cannot avoid 
thi i d i it ” Wi t Ch hillthis period; we are in it now.” – Winston Churchill 
© 2014 SIM International & Leon Kappelman, Primary Investigator  42
The Largest 
TechnologyTechnology 
InvestmentsInvestments
of Organizations
43© 2014 SIM International & Leon Kappelman, Primary Investigator
Organization’s Largest IT Investments
Top 10: Senior IT Leader – 2014 – Percent Selecting
19 1%
30.1%
D t C t I f t t
Analytics Business Intelligence
Top 10: Senior IT Leader  2014  Percent Selecting
18.7%
19.1%
l / f l
Enterprise Resource Planning
Data Center Infrastructure
15.6%
18.4%
Cloud Computing 
Application / Sofware Development
11.9%
13.8%
Security / Cybersecurity 
Customer Relationship Management
11.0%
11.2%
Network / Telecommunications
Integration / Enterprise Application Integration
9%
0% 5% 10% 15% 20% 25% 30% 35%
Big Data
44
717 Unique Organizations Reporting
© 2014 SIM International & Leon Kappelman, Primary Investigator
Senior IT Leader – Top 10
Organization’s Largest/Most Significant IT Investmentg g / g
2014 2013
Analytics Business Intelligence 1 1
Data Center Infrastructure 2 NEW
Enterprise Resource Planning 3 4
Application / Software Development 4 6
Cloud Computing 5 3
Customer Relationship Management 6 2
Security / Cybersecurity 7 14
I t ti / E t i A li ti I t ti 8 7Integration / Enterprise Application Integration 8 7
Network / Telecommunications 9 8
Big Data 10 5Big Data 10 5
Dropped off the Top 10:
• Mobile Wireless apps (from 6th to 13th)
45© 2014 SIM International & Leon Kappelman, Primary Investigator
Unique Organizations : 
2014 =717; 2013 = 483 
• Customer/Corporate portals (from 9th to 16th)
IT Investments, 2003‐2014
Organization’s Top 10 Largest/Most Significant
IT Investments 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
A l i / B i I lliAnalytics / Business Intelligence  1 1 1 1 1 1 2 2 2 3 2 1
Data Center Infrastructure 2 New
Enterprise Resource Planning 3 4 3 3 3 3 14 6 5
Application & Software Development 4 6 11Application & Software Development 4 6 11
Cloud Computing (e.g. SaaS, PaaS, IaaS) 5 3 2 2 5 17
Customer Relationship Management 6 2 5 5 9 13
Security / Cybersecurity 7 14 11 8 8 1Security / Cybersecurity 7 14 11 8 8 1
Integration 8 7 8 9 18 5 12 10 2 8 3
Network/ Telecommunications 9 8 12
Big Data 10 5 10Big Data  10 5 10
Larger increase in rank 
Dropped off the Top 10:
• Mobile Wireless apps (from 6th to 13th)
Larger decrease in rank
Mobile Wireless apps (from 6 to 13 )
• Customer/Corporate portals (from 9th to 16th)
46© 2014 SIM International & Leon Kappelman, Primary Investigator
717 Unique Organizations Reporting
Most Personally Worrisome Technology 
Concerns of Senior IT Leaders  2014 2013
Security / Cybersecurity  1 2
Analytics Business Intelligence 2 1
Disaster Recovery 3 3
Integration / Enterprise Application Integration 4 7Integration / Enterprise Application Integration 4 7
Application / Software Development 5 15
Cloud Computing 6 4Cloud Computing  6 4
Innovation / Disruptive Technologies 7 New
Legacy Applications 8 8
Enterprise Resource Planning 9 9
“Keeping the IT lights on”
Data Center / Infrastructure 10 New
“Increasing business capabilities”Keeping the IT lights on
47© 2014 SIM International & Leon Kappelman, Primary Investigator
Unique Organizations Reporting: 2014 =717; 2013 = 483 
Increasing business capabilities
Comparing IT Leaders’ Most Worrisome to the 
Organization’s Largest IT Investment (2014)g g
Smaller spend, big worry:  KTLO, IT value proposition. 
Big spend smaller worry: Been there done that
© 2014 SIM International & Leon Kappelman, Primary Investigator  48
Big spend, smaller worry: Been there, done that.
The Top IT 
Management 
Issues andIssues and 
Concerns 
49© 2014 SIM International & Leon Kappelman, Primary Investigator
Organization’s Most Important IT Management Concerns
Top 10: Senior IT Leader ‐ 2014 ‐ Percent Selectingp g
26%Alignment of IT and/with the business
17%
18%
Business Agility/Flexibility
Security/Privacy
15%
16%
IT Time‐to‐Market
Business Productivity
13%
13%
Velocity of Change in Business
IT Value Proposition in the business
12%
13%
Busines Cost Reduction Controls
Innovation
11%
0% 5% 10% 15% 20% 25% 30%
Revenue Generating IT Projects
50© 2014 SIM International & Leon Kappelman, Primary Investigator
717 Unique Organizations Reporting
Organization’s Most Important IT Management Concerns
2014 20132014 2013
Alignment of IT and/with the business 1 1
Security/Privacy 2 7cSecurity/Privacy 2 7
Business Agility/Flexibility 3 2
B i P d ti it 4 3
c
Business Productivity 4 3
IT Time‐to‐Market / Speed of Delivery 5 New
IT Value Proposition in the business 6 New
Velocity of Change in Business 7 New
Innovation 8 New
Business Cost Reduction /Controls 9 4
Revenue Generating IT Projects 10 10
Large change in rank
51© 2014 SIM International & Leon Kappelman, Primary Investigator
Unique Organizations Reporting: 2014 =717; 2013 = 483 
Large change in rank 
• “IT Cost Reduction and Controls”
Fell off the Top 10 of IT Management Concerns 
• “IT Cost Reduction and Controls”
‐ In the organizations’ Top 10 issues since 2003
‐ Dropped to 17th
• “IT Service Delivery / ‘Keeping the Lights On’”
‐ Ranked 8th  in 2013
‐ Dropped to 22nd‐ Dropped to 22
• “IT Efficiency”
‐ In the organizations’ top 10 issues since 2009
‐ Dropped to 21st
These IT management concerns moved into the Top 10 
‐ IT Time‐to‐Market / Speed of Delivery
‐ IT Value Proposition in the business
‐ Velocity of Change in Businessy g
‐ Innovation
© 2014 SIM International & Leon Kappelman, Primary Investigator  52
h k l d i h ?What keeps IT leaders up at night?
TOP 5
1. Security1. Security
2. IT skill shortage
3 Alignment of IT with the business3. Alignment of IT with the business
4. IT time to market / Speed of delivery
5 IT value proposition to the business5. IT value proposition to the business
© 2014 SIM International & Leon Kappelman, Primary Investigator  53
Top IT Management Concerns/Issues 
Most Important/Worrisome to YOU Personallyp / y
54© 2014 SIM International and Leon Kappelman, Primary Investigator
Senior‐most IT leader in n unique organizations reporting: 2014 n = 717; 2013 n = 483
2014 Most Important/Worrisome to YOU Personally
(compared to organization’s most important)
Most Important or 
Worrisome to IT 
( )
Most Important to 
the Organization 
( ) IT Management IssuesLeaders (in 2013) (in 2013) IT Management Issues
1     (2) 2 (7)  Security/Privacy
2 ( ) 18 ( ) IT T l t/Skill Sh t /HR2 (3)  18   (16) IT Talent/Skill Shortage/HR
3 (1) 1    (1) Alignment of IT with the Business
4 5 IT Ti t M k t4 (New)  5  (New) IT Time‐to‐Market 
5 (New) 6  (New) IT Value Proposition to the Business 
6 14 P i i i i P f IT P j6 (5) 14   (11)  Prioritization Process for IT Projects
7   (New)  26 (New)  Velocity of Change in IT 
8 14 i l i8    (11) 14 (15)  IT Strategic Planning 
9 (New)  7 (New)  Velocity of Change in Business
10 27
55© 2014 SIM International & Leon Kappelman, Primary Investigator
10   (4) 27   (14)  IT Disaster Recovery
717 Unique Organizations Reporting
THE BOTTOM LINETHE BOTTOM LINE
and what to do about it …
56© 2014 SIM International and Leon Kappelman, Primary Investigator
THE BOTTOM LINE
Changing
Think Big
Be Nimble
Results show we’re in a time of profound change for 
business, technology, IT departments, and IT leaders.
Be Nimble
Move Fast
Challenging
• Focus of organizations and IT leaders changing. Emphasis 
on business value, strategy, innovation, and speed.on business value, strategy, innovation, and speed.
• How IT dollars are being spent is changing.
• How IT is being delivered in changing.How IT is being delivered in changing.
• With whom IT leaders spend their time is changing.
• What IT leaders do with their time is changing.What IT leaders do with their time is changing.
Not all organizations CIOs or C‐suite denizens will successfullyNot all organizations, CIOs, or C‐suite denizens will successfully 
make it through the gauntlet of this transition periods.
“It is quite likely that the CIO position is the most complicated and
© 2014 SIM International & Leon Kappelman, Primary Investigator  57
It is quite likely that the CIO position is the most complicated and 
demanding job in organizations today. “ – 2015 SIM IT Trends Report
THE BOTTOM LINE
Changing
Think Big
Be Nimble
Results show we’re in a time of profound change for 
business, technology, IT departments, and IT leaders.
Be Nimble
Move Fast
Challenging
• Focus of organizations and IT leaders changing. Emphasis 
on business value, strategy, innovation, and speed.
To be one of the “CIO” or “CTO” survivors:
• Learn the business: Be the business. Become the business.on business value, strategy, innovation, and speed.
• How IT dollars are being spent is changing.
• How IT is being delivered in changing.
• Build strong, value‐creating relationships (partnerships) with…
• Yourself and the C‐suite.
• IT and the business, and its customers and suppliers.How IT is being delivered in changing.
• With whom IT leaders spend their time is changing.
• What IT leaders do with their time is changing.
IT and the business, and its customers and suppliers.
• IT and its vendors and suppliers.
• Build a strong team, with a strong bench.
M k IT h d i t t d fl ibl d f t
What IT leaders do with their time is changing.
Not all organizations CIOs or C‐suite denizens will successfully
• Make IT more shared, integrated, flexible, secure, and fast.
• Learn from trusted sources (e.g., your fellow SIM members).
Not all organizations, CIOs, or C‐suite denizens will successfully 
make it through the gauntlet of this transition periods.
“It is quite likely that the CIO position is the most complicated and
© 2014 SIM International & Leon Kappelman, Primary Investigator  58
It is quite likely that the CIO position is the most complicated and 
demanding job in organizations today. “ – 2015 SIM IT Trends Report
“It is not the most intellectual of the species that 
“ h l bl
“Ne er ne er ne er gi e p!”
“No one has to change.  
“In a time of drastic change it is the 
learners who inherit the future The
survives; it is not the strongest that survives; but the 
species that survives is the one that is able to “If your time to you is worth savin’; Then you 
b tt t t i i ’ ’ll i k lik
“The only sustainable competitive 
advantage is an organization's ability to 
“Never, never, never give up!”
– Winston Churchill
g
Survival is optional.” 
learners who inherit the future. The 
learned usually find themselves equipped 
l ld h l ”
adapt to and to adjust best to the changing 
environment in which it finds itself.”
better start swimmin’ or you’ll sink like a 
stone; For the times they are a‐changin’.” 
ad a tage s a o ga at o s ab ty to
learn faster than the competition.” 
― Peter M SengeWinston Churchill
– W. Edwards Demingto live in a world that no longer exists.” 
– Eric Hoffer
environment in which it finds itself.
– Leon Megginson (describing Charles Darwin’s findings)
; y g
– Bob Dylan
― Peter M. Senge
Eric Hoffer
© 2014 SIM International & Leon Kappelman, Primary Investigator  59
A PEEK @
SIMposium
Panelists
p
4‐November‐2014
Bill Peterson, LiquidHub
Caren Shiozaki, Thornburg Mortgage
Jennie Zamberlan, Avantia
Joseph Pucciarelli, IDCJoseph Pucciarelli, IDC
Presenters
Leon Kappelman
Eph McLean
Vess Johnson
Comprehensive Report 
www simnet org/?ITTrendsStudywww.simnet.org/?ITTrendsStudy
60© 2014 SIM International & Leon Kappelman, Primary Investigator 

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A Peek @ Trends'15 - SIMposium'14 FINAL 2post

  • 1. A PEEK @ SIMposium Panelists p 4‐November‐2014 Bill Peterson, LiquidHub Caren Shiozaki, Thornburg Mortgage Jennie Zamberlan, Avantia Joseph Pucciarelli, IDCJoseph Pucciarelli, IDC Presenters Leon Kappelman Eph McLean Vess Johnson Comprehensive Report  http://www simnet org/?ITTrendsStudyhttp://www.simnet.org/?ITTrendsStudy 1© 2014 SIM International & Leon Kappelman, Primary Investigator 
  • 4. IT Trends: The Research Project • Focus is IT management in organizations• Focus is IT management in organizations • Collaboration of academics and practitioners • Population: SIM members (c4800 senior IT executives)• Population: SIM members (c4800 senior IT executives) • Duration: 10 months, annually • Deliverables: Reports (full personal) SIMposium MISQE• Deliverables: Reports (full, personal), SIMposium, MISQE • SIM has specific objectives: • Value proposition for existing membersValue proposition for existing members • Create unique intellectual capital • Publicity and branding: “SIM, the voice of IT leadership” • Attract new members • Academics have objectives too: D t h t h l titi• Do great research to help practitioners • Get access to amazing data for publications and teaching © 2014 SIM International and Leon Kappelman, Primary Investigator  4
  • 6. THE BOTTOM LINE Results show we’re in a time of profound change for business,  technology, IT departments, and IT leadership. • Focus of organizations and IT leaders changing. Emphasis  technology, IT departments, and IT leadership. on business value, strategy, innovation, and speed. • How IT dollars are being spent is changing. • How IT is being delivered in changing. • With whom IT leaders spend their time is changing. • What IT leaders do with their time is changing. Not all organizations, CIOs, or C‐suite denizens will successfully  k i h h h l f hi i i i dmake it through the gauntlet of this transition period. “It is quite likely that the CIO position is the most complicated and © 2014 SIM International & Leon Kappelman, Primary Investigator  6 It is quite likely that the CIO position is the most complicated and  demanding job in organizations today. “ – 2015 SIM IT Trends Report
  • 7. THE BOTTOM LINEChangingResults show we’re in a time of profound change for business,  technology, IT departments, and IT leadership. Changing Thi k Bi• Focus of organizations and IT leaders changing. Emphasis  technology, IT departments, and IT leadership. Think Bigon business value, strategy, innovation, and speed. • How IT dollars are being spent is changing. Be Nimble• How IT is being delivered in changing. • With whom IT leaders spend their time is changing. Be Nimble • What IT leaders do with their time is changing. Not all organizations, CIOs, or C‐suite denizens will successfully  k i h h h l f hi i i i d Move Fastmake it through the gauntlet of this transition periods. “It is quite likely that the CIO position is the most complicated and Challenging © 2014 SIM International & Leon Kappelman, Primary Investigator  7 It is quite likely that the CIO position is the most complicated and  demanding job in organizations today. “ – 2015 SIM IT Trends ReportChallenging
  • 8. 2015 theme song:2015 theme song:  “The times they are a‐changin’”  “If your time to you is worth savin’;If your time to you is worth savin ;  Then you better start swimmin’ or you’ll  sink like a stone; For the times they are  a‐changin’”a‐changin .   – Bob Dylan © 2014 SIM International & Leon Kappelman, Primary Investigator  8
  • 9. 2015 SIM IT Trends Study • 35th Anniversary of SIM IT Trends  Study • 1002 complete responses is the largest  sample since study began in 1980 • 717 unique “Organizations”  represented by a “Senior IT Leader” 451 “CIO ” i th l• 451 “CIOs” in the sample • Average revenue of 717 is $5.6 billion • Total revenue $4 trillion or 25 percent• Total revenue $4 trillion or 25 percent  of the U.S. economy’s GDP. • Average IT budget of 717, $287 millionAverage IT budget of 717, $287 million • $200 billion in 2014 IT spending. © 2014 SIM International & Leon Kappelman, Primary Investigator  9
  • 10. 35th Anniversary SIM IT Trends Study Organization Trends: IT Spending, Staffing, and Structure “We shape our buildings; thereafter they shape us ” Winston ChurchillWe shape our buildings; thereafter they shape us. – Winston Churchill © 2014 SIM International & Leon Kappelman, Primary Investigator  10
  • 11. IT Organization Structure 2006 ‐ 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014 74% 77%80% 90% 2006 2007 2008 2009 2010 2011 2012 2013 2014 74% 69% 72% 69% 66% 63% 65% 71.1% 60% 70% 80% 37% 35%40% 50% 60% 26% 23% 31% 28% 31% 34% 37% 35% 28.9% 20% 30% 40% 0% 10% 20% 717 U i O i i R i 0% Centralized Decentralized/Federated/Hybrid 9 yr. average: 69.7% 30.3% 11© 2014 SIM International & Leon Kappelman, Primary Investigator 717 Unique Organizations Reporting
  • 12. Percentage of Revenue Allocated to IT Budget 6% 4.9% 4.9% 5.1% 5% 3.6% 3.6% 3.5% 3.8% 3.8% 3.9% 3.6% 4% Average 4.08% 3% 2% 1% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 12© 2014 SIM International & Leon Kappelman, Primary Investigator 493 Unique Organizations Reporting
  • 13. Change in IT Budget from Previous Year  2004 – 2014 (actual) 2015 (projected) 60% 70% 2004  2014 (actual) 2015 (projected) Average (median) Increase 2014:   1.9% (2%) actual  2015 0 9% (1%) j t d 52% 63% 61% 48% 56%46% 61% 57% 63% 51% 52% 50% 60%2015:   0.9% (1%) projected 48% 34% 25% 52% 30% 40% 30% 24% 27% 35% 35% 26% 22% 20% 21% 20% 20% 30% 17% 20%20% 0% 10% Increased No Change Decreased 0% 2015  projected 20142013201220112010200920082007200620052004 Increased No Change Decreased 13© 2014 SIM International & Leon Kappelman, Primary Investigator Unique Organizations Reporting: 2014 = 512; 2015 = 485
  • 14. IT Budget Allocation  2014 Actual and 2015 Projected2014 Actual and 2015 Projected % Allocated to  Category Projected Percentage of Organizations  Projecting 2015 Allocations Average (median) Increase ( ) l Budget Categories g y Projected  Change  2014‐2015 Projecting 2015 Allocations  Will:2014  Actual 2015  Projected Decrease Flat Increase Hardware 15.7% 15.4% ‐0.3% 25% 66% 10% 2014:   1.9% (2%) actual  2015:   0.9% (1%) projected Software 17.9% 17.6% ‐0.3% 18% 67% 14% Facilities (including supplies and  5 6% 5 4% 0 2% 13% 82% 5% ( g pp consumables) 5.6% 5.4% ‐0.2% 13% 82% 5% Employees 38.5% 38.8% 0.3% 13% 68% 19% Consultants 6.5% 6.1% ‐0.4% 12% 77% 11% Contractors 5.8% 5.4% ‐0.4% 12% 81% 7% Increase in budget  Services (SaaS, PaaS, IaaS, cloud,  processes, etc.) 10.1% 11.3% 1.2% 6% 68% 26% Decrease in budget  14© 2014 SIM International & Leon Kappelman, Primary Investigator 366 Unique Organizations Reporting projected 2014‐2015  projected 2014‐2015 
  • 15. IT Budget Allocation  2014 Actual and 2015 Projected % Allocated to  Category Projected Percentage of Organizations  Projecting 2015 Allocations 2014 Actual and 2015 Projected Average (median) Increase ( ) l Magnitude  of change Budget Categories g y Projected  Change  2014‐2015 Projecting 2015 Allocations  Will:2014  Actual 2015  Projected Decrease Flat Increase Hardware 15.7% 15.4% ‐0.3% 25% 66% 10% 2014:   1.9% (2%) actual  2015:   0.9% (1%) projected of change  in $s of  spending ‐0.83% Software 17.9% 17.6% ‐0.3% 18% 67% 14% Facilities (including supplies and  5 6% 5 4% 0 2% 13% 82% 5% ‐0.59% 2 51% ( g pp consumables) 5.6% 5.4% ‐0.2% 13% 82% 5% Employees 38.5% 38.8% 0.3% 13% 68% 19% ‐2.51% 1.89% Consultants 6.5% 6.1% ‐0.4% 12% 77% 11% Contractors 5.8% 5.4% ‐0.4% 12% 81% 7% ‐5.12% ‐5.87% Services (SaaS, PaaS, IaaS, cloud,  processes, etc.) 10.1% 11.3% 1.2% 6% 68% 26% Decrease in budget Increase in budget  13.11% 15© 2014 SIM International & Leon Kappelman, Primary Investigator 366 Unique Organizations Reporting projected 2014‐2015 projected 2014‐2015 
  • 16. IT Budget Allocation  2009 2014 (actual) and 2015 (projected)2009‐2014 (actual) and 2015 (projected) Projected  2009‐14  Average j Change  2014‐2015 2015  Projected  2014 2013 2012 2011 2010 2009 g (weighted  to 100%) 2009‐14  Average Employees 0.3% 38.8% 38.5% 40.3% 40.0% 40.0% 46.0% 43.0% 38.1% 41.3%p y Contractors ‐0.4% 5.4% 5.8% 9.5% 11.0% 5.0% 12.0% 12.0% 8.5% 9.2% Consultants ‐0.4% 6.1% 6.5% 3.1% 9.0% 11.0% 10.0% 12.0% 7.9% 8.6% Hardware,  0 8% 38 4% 39 2% 47 1% 40 0% 44 0% 32 0% 33 0% 36 2% 39 2% , Software, Facilities ‐0.8% 38.4% 39.2% 47.1% 40.0% 44.0% 32.0% 33.0% 36.2% 39.2% Cloud Services 1.2.% 11.3% 10.1% 9.3% 10.1% Increase in budget  projected 2014‐2015 Decrease in budget  projected 2014‐2015 16© 2014 SIM International & Leon Kappelman, Primary Investigator 366 Unique Organizations Reporting
  • 17. IT Budget Allocation  2009‐2014 (actual) and 2015 (projected) with Trendlines2009‐2014 (actual) and 2015 (projected), with Trendlines 50% 40% 30% Employees Hardware, Software, Facilities Contractors 20% Contractors Consultants Cloud Services 10% 0% 2015 Projected 201420132012201120102009 17© 2014 SIM International & Leon Kappelman, Primary Investigator 366 Unique Organizations Reporting
  • 19. IT Employee Annual Turnover Rates 10.00% 2014 9.0% 8 00% 9.00% 2014 • Involuntary = 3% • Voluntary = 6% • Retire = 1 4% 5 8% 6.4% 7.1% 6.6% 6 00% 7.00% 8.00% 9‐year average 6.26% • Retire = 1.4% • Options = 4.6% 5.8% 5.2% 5.5% 5.5% 5.2% 5.00% 6.00% 3.00% 4.00% 1.00% 2.00% 0.00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 19© 2014 SIM International & Leon Kappelman, Primary Investigator 539 Unique Organizations Reporting
  • 20. Percentage of IT Budget Spent on Training & Educationon Training & Education 4 7% 5.0% 5% 6% 3.5% 4.7% 4% 5% Average 3.72% 3.1% 3.2% 2.9%3% 2% 1% 0% 2009 2010 2011 2012 2013 2014 20© 2014 SIM International & Leon Kappelman, Primary Investigator 537 Unique Organizations Reporting
  • 21. Percent of All IT Delivered by Cloud  18% 16% 18% • 31.1% of all IT services are cloud‐based (up from 26.5%)  • Cloud‐based IT is delivered via 12% 14% • internal private capabilities = 45% • external public capabilities = 55% • 9.5% don’t use cloud at all, down from 19% 90 5% ili “ h l d” ( f 81% i 2013) 8% 10% spondents • 90.5% utilize “the cloud” (up from 81% in 2013) Average 31.1% 6% 8% Res g 2% 4% 0% 0 >0‐5 >5‐10 >10‐20 >20‐30 >30‐40 >40‐50 >50‐60 >60‐70 >70‐80 >80‐90 >90‐100 Percentage of Cloud‐based Services 21© 2014 SIM International & Leon Kappelman, Primary Investigator g 528 Unique Organizations Reporting
  • 22. Percent of All IT Delivered as Shared Service 25% • 46.9% of all IT delivered as shared services (down from 56.4%) • IT Shared Services is delivered via • internal private capabilities = 62.2% 20% internal private capabilities   62.2% • external public capabilities = 36.1% • other = 1.7% • 16.6% don’t use shared services at all 15% ndents Average 46.9% 10% Respon 5% 0% 0 >0‐10 >10‐20 >20‐30 >30‐40 >40‐50 >50‐60 >60‐70 >70‐80 >80‐90 >90‐100 Percentage of IT as Shared Service 22© 2014 SIM International & Leon Kappelman, Primary Investigator Percentage of IT as Shared Service 452 Unique Organizations Reporting
  • 23. Top 5 IT Performance Measures  for In‐House IT and Outsourced ITfor In House IT and Outsourced IT Used for: Internal IT 2014 External IT 2014 Rank  Rank Performance Measures  Availability 1 1IT User satisfaction 2 7 Value of IT to the business 3 10 Business  Business  Projects Delivered on Time 4 2 Help Desk Performance  5 12IT IT Projects Delivered on Budget  7 5 SLA Target Compliance  17 4IT IT None 27 3xxx 23© 2014 SIM International & Leon Kappelman, Primary Investigator 451 CIOs Reporting Sorted by internal IT importance rankings
  • 25. “It is not the most intellectual of the speciesIt is not the most intellectual of the species  that survives; it is not the strongest that  survives; but the species that survives is the  one that is able to adapt to and to adjust  best to the changing environment in which it  finds itself.”finds itself. – Leon Megginson (describing Charles Darwin’s findings) © 2014 SIM International & Leon Kappelman, Primary Investigator  25
  • 27. 7  Average Job Tenure of CIOs (in years) 5 10 5.96  5 20 5.41 6  4.10  4.30  4.60  5.10  4.45  5.20  4 5  Average 4.75 3.60  3  4  2  ‐ 1  ‐ 2006 2007 2008 2009 2010 2011 2012 2013 2014 © 2014 SIM International & Leon Kappelman, Primary Investigator  27 2014 = 451 CIO Respondents
  • 29. To Whom the CIO Reports To, 2005 ‐ 2014  50% CEO CFO COO SBU Other 40% 45% CEO CFO COO SBU Other CEO 30% 35% 40% 25% 30% CFO 15% 20% COO 5% 10% SBU Other 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 29© 2014 SIM International & Leon Kappelman, Primary Investigator
  • 30. CIOs with a Seat at the Strategy Table  I am on the top management team that makes strategic business decisions 55% 60% I am on the top management team that makes strategic business decisions.  40% 50% 21% 30% 9% 9% 21% 20% 5% 9% 9% 1% 0% 10% 1 Strongly  Disagree 2 Disagree 3 Neither Agree  nor Disagree 4 Agree 5 Strongly  Agree Don't Know or  N/A  30© 2014 SIM International & Leon Kappelman, Primary Investigator 364 CIOs Reporting
  • 31. Last Position Before Becoming CIO (2010‐2014) 70% 54% 62% 53% 59% 62% 60% 2010 38% 37%40% 50% 2011 2012 31% 37% 32% 28%30% 2013 2014 20% 4% 4%4% 3% 5% 5%5% 4%3% 7% 0% 10% Withi O i ti IT O t id O i ti IT Withi O i ti N IT O t id O i ti N ITWithin Organization, IT Outside Organization, IT Within Organization, Non‐IT Outside Organization, Non‐IT Average  33.1% 58.1% 4.2% 4.7%         31© 2014 SIM International & Leon Kappelman, Primary Investigator 451 CIOs Reporting
  • 32. Top 10 Performance Measures for CIOs  %  selecting Rank  Value of IT to the business 40.80% 1Business User satisfaction 29.94% 2 IT's contribution to strategy 27.72% 3Business Business Innovative new ideas 20.18% 4 Availability 18.63% 5 Business IT Projects Delivered on Time 17.74% 6 IT Cost controls 13.30% 7 IT IT Productivity improvement 12.20% 8 Business Cost Reduction Controls 9.53% 9Business  Business  Revenue Growth 9.53% 9Business  32© 2014 SIM International & Leon Kappelman, Primary Investigator 451 CIOs Reporting
  • 33. Top 10 IT Performance Measures  for Personal (CIOs) Compared to Internal ITfor Personal (CIOs) Compared to Internal IT Used for: Personal CIO 2014 Rank Internal IT 2014 RankPerformance Measures Rank  Rank Performance Measures  Value of IT to the business 1 3 User satisfaction 2 2 Business Business IT's contribution to strategy 3 9 Innovative new ideas 4 16 Business Business Availability 5 1 Projects Delivered on Time 6 4 IT IT IT Cost controls 7 8 Productivity improvement 8 6 B i C t R d ti C t l 9 10 IT B i Business  Business Cost Reduction Controls 9 10 Revenue Growth 9 15Business  Business  33© 2014 SIM International & Leon Kappelman, Primary Investigator 451 CIOs Reporting Sorted by Personal (CIOs) IT importance rankings
  • 34. With Whom do CIOs Spend Their Time?  Average Percent of a CIO’s Time Spent Working with … 0% 10% 20% 30% 40% 19.8% 20.5% C‐Level (non‐IT) personnel Business (non‐IT and non‐C‐Level) personnel 30.3%IT employees within your organization IT contractors vendors and service suppliers 8.0% 6.0% IT contractors, vendors, and service suppliers  (who are not employees of your organization) External customers and/or suppliers of your  organization 2.8% o ga at o IT personnel of external customers and/or  suppliers of your organization IT ll id f i i 4.3% 7.8% IT colleagues outside of my organization Working Alone 34 0.5%Other 305 CIO Respondents © 2014 SIM International & Leon Kappelman, Primary Investigator
  • 36. Percentage of CIOs Interacting with … How Do CIOs Spend Their Time? e ce tage o C Os te act g t … © 2014 SIM International & Leon Kappelman, Primary Investigator  36
  • 37. What Do CIOs Do with Their Time? % selecting an activity Activities Performed by CIOs:  % selecting an activity  (standardized to 100%) IT Business Business priorities, strategy, architecture 8.1% i i i / 8 0%IT priorities/strategy 8.0% Managing organizational change 6.8% Non‐IT‐related activities 5.1% Evangelist for the business 4.8%Evangelist for the business 4.8% Business research 5.1% IT Evangelist 5.9% IT Governance 5.4% IT h d l 4 7%IT human resources and talent management 4.7% IT operations/facilities management 5.1% Knowing the needs of IT customers 6.6% Knowing the needs of customers of the business 6.5%o g e eeds o cus o e s o e bus ess 6 5% Project management 6.7% Software development 4.1% Technical research 5.9% R ll ti /b d ti 6 0%Resource allocation/budgeting 6.0% SUB TOTALS 51.7% 42.9% Managing my personal network 5.4% TOTAL 100.0% © 2014 SIM International & Leon Kappelman, Primary Investigator  37
  • 38. Top 10 Skills for CIO Success  Most Important Skills %  selecting Rank  Providing leadership 34 3% 1Providing leadership 34.3% 1 People management / relationships 29.5% 2 Strategic planning 23.7% 3Strategic planning 23.7% 3 Decision making 23.4% 4 Communication (oral) 20.8% 5( ) Collaboration with others / teamwork 20.2% 6 Emotional intelligence 16.0% 7g Honesty / credibility  15.4% 8 Business analysis  11.9% 8y Change management  11.2% 10 © 2014 SIM International & Leon Kappelman, Primary Investigator  38 312 CIOs Reporting
  • 39. Most Important Skills for Success as an IT Professional (New Hires, Mid‐Management and CIOs) ( , g ) 50% Providing  leadership  CIO IT Middle Management New IT Hires Top 5 for each Sorted by CIO importance rankings 30% 35% 40% 45% 50% People  management /  relationships  Functional area  knowledge  10% 15% 20% 25% 30% Strategic Technical  Career paths 0% 5% 10% g planning knowledge  Decision MakingProblem solving  Core skills Communication  Collaboration  with others / (oral)  with others /  teamwork  © 2014 SIM International & Leon Kappelman, Primary Investigator  39 312 CIO Respondents
  • 40. Most Important Skills for Success as an IT Professional (New Hires, Mid‐Management and CIOs) ( , g ) 45% 50% CIO IT Middle Management New IT Hires 30% 35% 40% 15% 20% 25% 5% 10% 0% Top 10 for each S t d b N IT Hi i t ki © 2014 SIM International & Leon Kappelman, Primary Investigator  40 312 CIO Respondents Sorted by New IT Hires importance rankings
  • 41. “In a time of drastic change it is the  l h i h i h f Thlearners who inherit the future. The  learned usually find themselves y f equipped to live in a world that no  longer exists ”longer exists.”  – Eric Hoffer © 2014 SIM International & Leon Kappelman, Primary Investigator  41
  • 42. 35th Anniversary SIM IT Trends Studyy y IT Management Issues  and Investments “We are entering a period of consequences.  We cannot avoid  thi i d i it ” Wi t Ch hillthis period; we are in it now.” – Winston Churchill  © 2014 SIM International & Leon Kappelman, Primary Investigator  42
  • 44. Organization’s Largest IT Investments Top 10: Senior IT Leader – 2014 – Percent Selecting 19 1% 30.1% D t C t I f t t Analytics Business Intelligence Top 10: Senior IT Leader  2014  Percent Selecting 18.7% 19.1% l / f l Enterprise Resource Planning Data Center Infrastructure 15.6% 18.4% Cloud Computing  Application / Sofware Development 11.9% 13.8% Security / Cybersecurity  Customer Relationship Management 11.0% 11.2% Network / Telecommunications Integration / Enterprise Application Integration 9% 0% 5% 10% 15% 20% 25% 30% 35% Big Data 44 717 Unique Organizations Reporting © 2014 SIM International & Leon Kappelman, Primary Investigator
  • 45. Senior IT Leader – Top 10 Organization’s Largest/Most Significant IT Investmentg g / g 2014 2013 Analytics Business Intelligence 1 1 Data Center Infrastructure 2 NEW Enterprise Resource Planning 3 4 Application / Software Development 4 6 Cloud Computing 5 3 Customer Relationship Management 6 2 Security / Cybersecurity 7 14 I t ti / E t i A li ti I t ti 8 7Integration / Enterprise Application Integration 8 7 Network / Telecommunications 9 8 Big Data 10 5Big Data 10 5 Dropped off the Top 10: • Mobile Wireless apps (from 6th to 13th) 45© 2014 SIM International & Leon Kappelman, Primary Investigator Unique Organizations :  2014 =717; 2013 = 483  • Customer/Corporate portals (from 9th to 16th)
  • 46. IT Investments, 2003‐2014 Organization’s Top 10 Largest/Most Significant IT Investments 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 A l i / B i I lliAnalytics / Business Intelligence  1 1 1 1 1 1 2 2 2 3 2 1 Data Center Infrastructure 2 New Enterprise Resource Planning 3 4 3 3 3 3 14 6 5 Application & Software Development 4 6 11Application & Software Development 4 6 11 Cloud Computing (e.g. SaaS, PaaS, IaaS) 5 3 2 2 5 17 Customer Relationship Management 6 2 5 5 9 13 Security / Cybersecurity 7 14 11 8 8 1Security / Cybersecurity 7 14 11 8 8 1 Integration 8 7 8 9 18 5 12 10 2 8 3 Network/ Telecommunications 9 8 12 Big Data 10 5 10Big Data  10 5 10 Larger increase in rank  Dropped off the Top 10: • Mobile Wireless apps (from 6th to 13th) Larger decrease in rank Mobile Wireless apps (from 6 to 13 ) • Customer/Corporate portals (from 9th to 16th) 46© 2014 SIM International & Leon Kappelman, Primary Investigator 717 Unique Organizations Reporting
  • 47. Most Personally Worrisome Technology  Concerns of Senior IT Leaders  2014 2013 Security / Cybersecurity  1 2 Analytics Business Intelligence 2 1 Disaster Recovery 3 3 Integration / Enterprise Application Integration 4 7Integration / Enterprise Application Integration 4 7 Application / Software Development 5 15 Cloud Computing 6 4Cloud Computing  6 4 Innovation / Disruptive Technologies 7 New Legacy Applications 8 8 Enterprise Resource Planning 9 9 “Keeping the IT lights on” Data Center / Infrastructure 10 New “Increasing business capabilities”Keeping the IT lights on 47© 2014 SIM International & Leon Kappelman, Primary Investigator Unique Organizations Reporting: 2014 =717; 2013 = 483  Increasing business capabilities
  • 48. Comparing IT Leaders’ Most Worrisome to the  Organization’s Largest IT Investment (2014)g g Smaller spend, big worry:  KTLO, IT value proposition.  Big spend smaller worry: Been there done that © 2014 SIM International & Leon Kappelman, Primary Investigator  48 Big spend, smaller worry: Been there, done that.
  • 50. Organization’s Most Important IT Management Concerns Top 10: Senior IT Leader ‐ 2014 ‐ Percent Selectingp g 26%Alignment of IT and/with the business 17% 18% Business Agility/Flexibility Security/Privacy 15% 16% IT Time‐to‐Market Business Productivity 13% 13% Velocity of Change in Business IT Value Proposition in the business 12% 13% Busines Cost Reduction Controls Innovation 11% 0% 5% 10% 15% 20% 25% 30% Revenue Generating IT Projects 50© 2014 SIM International & Leon Kappelman, Primary Investigator 717 Unique Organizations Reporting
  • 51. Organization’s Most Important IT Management Concerns 2014 20132014 2013 Alignment of IT and/with the business 1 1 Security/Privacy 2 7cSecurity/Privacy 2 7 Business Agility/Flexibility 3 2 B i P d ti it 4 3 c Business Productivity 4 3 IT Time‐to‐Market / Speed of Delivery 5 New IT Value Proposition in the business 6 New Velocity of Change in Business 7 New Innovation 8 New Business Cost Reduction /Controls 9 4 Revenue Generating IT Projects 10 10 Large change in rank 51© 2014 SIM International & Leon Kappelman, Primary Investigator Unique Organizations Reporting: 2014 =717; 2013 = 483  Large change in rank 
  • 52. • “IT Cost Reduction and Controls” Fell off the Top 10 of IT Management Concerns  • “IT Cost Reduction and Controls” ‐ In the organizations’ Top 10 issues since 2003 ‐ Dropped to 17th • “IT Service Delivery / ‘Keeping the Lights On’” ‐ Ranked 8th  in 2013 ‐ Dropped to 22nd‐ Dropped to 22 • “IT Efficiency” ‐ In the organizations’ top 10 issues since 2009 ‐ Dropped to 21st These IT management concerns moved into the Top 10  ‐ IT Time‐to‐Market / Speed of Delivery ‐ IT Value Proposition in the business ‐ Velocity of Change in Businessy g ‐ Innovation © 2014 SIM International & Leon Kappelman, Primary Investigator  52
  • 53. h k l d i h ?What keeps IT leaders up at night? TOP 5 1. Security1. Security 2. IT skill shortage 3 Alignment of IT with the business3. Alignment of IT with the business 4. IT time to market / Speed of delivery 5 IT value proposition to the business5. IT value proposition to the business © 2014 SIM International & Leon Kappelman, Primary Investigator  53
  • 55. 2014 Most Important/Worrisome to YOU Personally (compared to organization’s most important) Most Important or  Worrisome to IT  ( ) Most Important to  the Organization  ( ) IT Management IssuesLeaders (in 2013) (in 2013) IT Management Issues 1     (2) 2 (7)  Security/Privacy 2 ( ) 18 ( ) IT T l t/Skill Sh t /HR2 (3)  18   (16) IT Talent/Skill Shortage/HR 3 (1) 1    (1) Alignment of IT with the Business 4 5 IT Ti t M k t4 (New)  5  (New) IT Time‐to‐Market  5 (New) 6  (New) IT Value Proposition to the Business  6 14 P i i i i P f IT P j6 (5) 14   (11)  Prioritization Process for IT Projects 7   (New)  26 (New)  Velocity of Change in IT  8 14 i l i8    (11) 14 (15)  IT Strategic Planning  9 (New)  7 (New)  Velocity of Change in Business 10 27 55© 2014 SIM International & Leon Kappelman, Primary Investigator 10   (4) 27   (14)  IT Disaster Recovery 717 Unique Organizations Reporting
  • 57. THE BOTTOM LINE Changing Think Big Be Nimble Results show we’re in a time of profound change for  business, technology, IT departments, and IT leaders. Be Nimble Move Fast Challenging • Focus of organizations and IT leaders changing. Emphasis  on business value, strategy, innovation, and speed.on business value, strategy, innovation, and speed. • How IT dollars are being spent is changing. • How IT is being delivered in changing.How IT is being delivered in changing. • With whom IT leaders spend their time is changing. • What IT leaders do with their time is changing.What IT leaders do with their time is changing. Not all organizations CIOs or C‐suite denizens will successfullyNot all organizations, CIOs, or C‐suite denizens will successfully  make it through the gauntlet of this transition periods. “It is quite likely that the CIO position is the most complicated and © 2014 SIM International & Leon Kappelman, Primary Investigator  57 It is quite likely that the CIO position is the most complicated and  demanding job in organizations today. “ – 2015 SIM IT Trends Report
  • 58. THE BOTTOM LINE Changing Think Big Be Nimble Results show we’re in a time of profound change for  business, technology, IT departments, and IT leaders. Be Nimble Move Fast Challenging • Focus of organizations and IT leaders changing. Emphasis  on business value, strategy, innovation, and speed. To be one of the “CIO” or “CTO” survivors: • Learn the business: Be the business. Become the business.on business value, strategy, innovation, and speed. • How IT dollars are being spent is changing. • How IT is being delivered in changing. • Build strong, value‐creating relationships (partnerships) with… • Yourself and the C‐suite. • IT and the business, and its customers and suppliers.How IT is being delivered in changing. • With whom IT leaders spend their time is changing. • What IT leaders do with their time is changing. IT and the business, and its customers and suppliers. • IT and its vendors and suppliers. • Build a strong team, with a strong bench. M k IT h d i t t d fl ibl d f t What IT leaders do with their time is changing. Not all organizations CIOs or C‐suite denizens will successfully • Make IT more shared, integrated, flexible, secure, and fast. • Learn from trusted sources (e.g., your fellow SIM members). Not all organizations, CIOs, or C‐suite denizens will successfully  make it through the gauntlet of this transition periods. “It is quite likely that the CIO position is the most complicated and © 2014 SIM International & Leon Kappelman, Primary Investigator  58 It is quite likely that the CIO position is the most complicated and  demanding job in organizations today. “ – 2015 SIM IT Trends Report
  • 59. “It is not the most intellectual of the species that  “ h l bl “Ne er ne er ne er gi e p!” “No one has to change.   “In a time of drastic change it is the  learners who inherit the future The survives; it is not the strongest that survives; but the  species that survives is the one that is able to “If your time to you is worth savin’; Then you  b tt t t i i ’ ’ll i k lik “The only sustainable competitive  advantage is an organization's ability to  “Never, never, never give up!” – Winston Churchill g Survival is optional.”  learners who inherit the future. The  learned usually find themselves equipped  l ld h l ” adapt to and to adjust best to the changing  environment in which it finds itself.” better start swimmin’ or you’ll sink like a  stone; For the times they are a‐changin’.”  ad a tage s a o ga at o s ab ty to learn faster than the competition.”  ― Peter M SengeWinston Churchill – W. Edwards Demingto live in a world that no longer exists.”  – Eric Hoffer environment in which it finds itself. – Leon Megginson (describing Charles Darwin’s findings) ; y g – Bob Dylan ― Peter M. Senge Eric Hoffer © 2014 SIM International & Leon Kappelman, Primary Investigator  59
  • 60. A PEEK @ SIMposium Panelists p 4‐November‐2014 Bill Peterson, LiquidHub Caren Shiozaki, Thornburg Mortgage Jennie Zamberlan, Avantia Joseph Pucciarelli, IDCJoseph Pucciarelli, IDC Presenters Leon Kappelman Eph McLean Vess Johnson Comprehensive Report  www simnet org/?ITTrendsStudywww.simnet.org/?ITTrendsStudy 60© 2014 SIM International & Leon Kappelman, Primary Investigator