Fujitsu CIO technology trends survey 2012


Published on

Survey of CIOs on cloud, consumerisation of IT/BYOD, big data and social media/collaboration

Published in: Technology

Fujitsu CIO technology trends survey 2012

  1. 1. Fujitsu TechnologyPerspectivesCIO ResearchOffice of the CITO, International Business COMMERCIAL IN CONFIDENCE © Copyright 2012 Fujitsu Services Limited
  3. 3. We asked CIOs… To provide an assessment of the business impact of four „mega trends‟: Cloud Computing IT Consumerisation Big Data Social and Collaboration Their opinion of how the role of the CIO and business functions will change in driving the adoption of these technologies Their reaction to the trends presented in Fujitsu Technology Perspectives
  4. 4. Method of studyInterview based research, conducted with CIOs on a one-to- one basis in March and April 2012Interviews followed an intimate, conversational format conducted by business peers, based on a set of guidelines designed to get real, honest and insightful responses (and deliberately not a questionnaire format)Respondents selected from a representative sample of business sectors, a variety regions in UK, Europe and the USRespondents from major blue chip organisations responsible for IT budgets from tens of millions dollars to billions of dollarsResearch conducted completely independently of any customer relationship to Fujitsu (mostly organisations are not Fujitsu customers)The study deliberately used a small sample in order to „deep dive‟ into the views and opinions of the CIOs
  5. 5. Respondents Sector Region Automotive Europe Financial Services USA Government UK Legal UK Manufacturing (1) Germany Manufacturing (2) Global Media USA Retail Europe Telecom Global Utility (1) UK Utility (2) UK Note CIOs sampled all represent major blue chip organisations / household names.
  6. 6. The findings 1. Assessment of the business impact of the four „mega trends‟ 2. How the role of the CIO and business functions will change 3. Reaction to the trends presented in Fujitsu Technology Perspectives
  7. 7. „Megatrend‟ 1: Cloud ComputingPay-as-you-go services that transform the delivery ofinfrastructure and applications within the enterpriseand its external channels 6 Copyright 2012 FUJITSU
  8. 8. Cloud Computing common themes All bar one of the sample are already engaged in some form of cloud activity All expressed a view that cloud is vendor hype Cynicism that tier 1 vendors can be fully supportive of cloud when it breaks their own business models Many have private clouds, one in the sample is acting as a cloud provider Nobody willing to put customer data, new product details or personnel information in the cloud Loathe to use cloud for anything other than „non- core‟ apps A vendor that could establish confidence in a „totally secure‟ global offer would be unique and attractive
  9. 9. Cloud Computing individual commentsSector ResponseManufacturing (1) Cloud is “old hat”Media “Do people really talk about cloud anymore?”Utility (1) Enjoy the vendor independence that comes from cloud and switch frequentlyFinancial Services “Bankers don‟t trust IT vendors”; only one of sample not currently consuming from cloud but plan to do so over next 2-3 yearsManufacturing (2) See vendors conflicted between cloud offerings and traditional hardware & servicesGovernment Acting as a cloud provider to other government departmentsTelecom Have found cloud cuts implementation time for new business initiatives by 80%
  10. 10. Cloud Computing in summary Corporate take up is now a reality Not yet mainstream across the board but specific offers within cloud are attractive Private cloud rather than public cloud and only for non-core applications or platforms CIO and business are working together to implement these technologies CIOs claim the real business benefits are speed to implement, lower costs and location independence Concerns are security issues, loss of control, loss of IP, compliance and internal governance Major opportunity for vendor who can demonstrate and deliver guaranteed secure services
  11. 11. „Megatrend‟ 2: IT ConsumerisationThe rise of the mobile device and the changingrelationship between the end user and the IT functionby introducing greater degrees of freedom 10 Copyright 2012 FUJITSU
  12. 12. IT Consumerisation common themes All bar one of the respondents have developed „Bring Your Own Device‟ (BYOD) policies CIOs perceive this as the fastest moving of the mega-trends and a major area of focus Adapting to the trend seen as key to the survival of the central IT function In many cases employees are given a one time payment and guidelines issued over range of devices Path of evolution identified starting with the simplest apps first, and desktop ahead of remote devices Central IT no longer has the overhead of monitoring and evaluating new equipment
  13. 13. IT Consumerisation individual commentsSector ResponseManufacturing (1) BYOD has made integration of new companies (M&A) much easier and are seeing benefits from economies of scaleUtility (1) iPads are standard equipment for field engineers, who take better care of them and therefore been able to replace „ruggedised‟ laptopsFinancial Services Only one of sample not to implement BYODLegal With BYOD, they now depreciate hardware over 4 yrs instead of 18 months, dramatic savingsManufacturing (2) IT strategy retracts perimeter back to the data centre, „Apple- style‟ lockdown of user devices the new philosophyGovernment View IT consumerisation as both an opportunity and a threatTelecom Insist on their own devices, have „solved‟ security issues with encryption and remote delete functionality
  14. 14. IT Consumerisation in summary Majority of sectors are embarked on a BYOD strategy Consumerisation has largely been forced on IT by the business Some security concerns exist, but most have implemented in-house monitoring technology Key to success is well defined standards Savings are realised from the central functions, as well as from the overall cost of the estate Consumerisation is revolutionising the way the enterprise works Fastest moving trend; 5 years ago this was a „no-go‟ area for CIOs
  15. 15. „Megatrend‟ 3: Big Data The application of new analytical techniques to large, diverse and unstructured data sources to improve business performance 14 Copyright 2012 FUJITSU
  16. 16. Big Data common themes Some CIOs regarded as a hyped term, others were unfamiliar with it, a mixed view Responses very sector specific – manufacturing & utilities embracing, retail & financial services ambivalent Structure and format of corporate data is a major barrier to exploiting Fear there will be too much data and duplication of data from SaaS and CIOs will be saddled with fixing the mess Mixture of strategies from ignore to buy in from outside to build in-house & exploit new business Most CIOs are happy to „sit this one out‟ and leave to others
  17. 17. Big Data individual commentsSector ResponseManufacturing (1) Exploring advanced BI techniques & looking to acquire tools to exploit vast corporate informationMedia Cynical about the business value in return for what would be a substantial investmentUtility (1) Already thriving on data, maintain masses of data for forecasting supplier demandFinancial Services Their data is already structured, no need for „big data‟ appsLegal & Government See the challenge as how to connect experts and collate data from plethora of regulatory sources; buy not buildUtility (2) Interested in exploiting source and operating data together but don‟t see as a game changerTobacco manufacturer Concerned about unstructured data and multiple data sets and are monitoring developments in this area closelyClothing retailer Ambivalent, don‟t see the need for interpretation of mass dataMobile network View as a potential source of revenue; regulated to store 22 petabytes of data, exploring possibility of selling analytics
  18. 18. Big Data in summary Not yet fully understood by the CIO community Some CIOs view Big Data as a threat rather than a benefit Most agree that more BI analytics would be beneficial to the business Some scepticism about the availability of tools Larger organisations view analytic data as a source of additional revenue Fears exist about the authenticity of consolidated data Retail and finance sectors not convinced of benefit Not a „show stopper‟ in terms of business change
  19. 19. „Megatrend‟ 4: Social and Collaboration Exploiting the power of social networks and virtual collaboration tools to enable new dialogues and insights both externally and internally to the business 18 Copyright 2012 FUJITSU
  20. 20. Social & Collaboration common themes Respondents in various stages of policy and strategy regarding social media Having previously fought, most now allow Facebook, Twitter, Ebay, YouTube and are quick to cite successes CIOs feel they can‟t contain the march of social media in face of „user power‟ Significant business risks, some reported losses from negative social media coverage CIOs are beginning to exploit collaboration tools to good effect Telco and manufacturing are using collaboration for 24 hr design around globe in 8hr shifts Least hyped of the trends with many sectors now just „getting on with it‟
  21. 21. Individual comments on Social Media…Sector RegionMedia Have experienced revenue loss from negative Twitter campaign; but product marketing moving strongly into social spaceUtility (2) Views media strategies and tools as means of increasing communications and broadening access to knowledge to partnersManufacturing (2) Exercising restraint after Facebook campaign drew criticism from public & mediaRetailer Yet to be convinced of business value and have blocked Facebook & Twitter internally, but are engaged in a series of trials to develop a strategyAutomotive Recently appointed a head of social media, used Facebook to launch new car and encourage Twitter comments on their products
  22. 22. Individual comments on Collaboration… Sector Region Manufacturer (1) Believe that virtual teaming, mobility and global working will dramatically improve business operation in emerging markets such as Asia Media Little or no reason to deploy these tools at present Utility (1) Make use of Yammer and have developed an in- house tool called to enable virtual working Financial Bases much of its operation around collaborative Services working, but only internally Legal & Acknowledge there are great business efficiency Government gains and are experimenting internally Automotive Make use of Yammer Telecom Enable global collaboration of teams of experts to solve problems or project work through in-house tools
  23. 23. Social & Collaboration in summary Sector variance, some say „do as you wish‟ some say „never‟ Change is being led by the business Recognise opportunity for product research and product launch, but also risky Conscious of underlying security risk Many see social, mobile & cloud as linked and a single opportunity Opportunity to use collaboration tools to globalise the business, break silos and bridge diverse culture Technology has delivered internal benefits of time, location independence and optimised skill-sets, but belief is that tools are still immature
  24. 24. CIO ranking of the „mega-trends‟ IT Consumerisation: the fastest Higher moving trend, most have nowtake-up / embarked on a BYOD policy maturity Cloud: corporate take up a now reality, but not across all offerings, specific offers are attractive Social and Collaboration: some sector variance, change is being led by the business Big Data: A mixed view, some see as hyped, some are unfamiliar; sector- specific take-up
  25. 25. The findings 1. Assessment of the business impact of the four „mega trends‟ 2. How the role of the CIO and business functions will change 3. Reaction to the trends presented in Fujitsu Technology Perspectives
  26. 26. The trends challenge traditional CIO KPIs Challenges CIO KPI 1 To provide the functionality the „Pay as you go‟ enables the business needs to time, spec, business to find and purchase budget its own solutions CIO KPI 2 Cloud, BYOD and the opening To ensure the security and of social media challenge integrity of IT is up to the mark traditional security models across the enterprise CIO KPI 3 Control of IT budget no longer To demonstrate to management, an excuse as business units business users and shareholders buy direct from vendors that IT budget is under control2 out of 3 is not good enough, and results in dismissal of the CIO
  27. 27. Four styles of maturity of the IT function Technology can enable the business Dynamic IT to achieve new objectives, for example a move to another sector NEWIncreasing maturity Functionality can be easily added, Cost Efficient IT reduced and measured enabling businesses greater flexibility and freedom Multiple point solutions implemented Chaotic IT to address individual business requirements; tech silos difficult to integrate and manage TRAD 80% of resources spent „keeping Legacy IT the lights on‟, IT viewed as a „necessary evil‟ and impacted by annual budget cuts
  28. 28. Modeling the IT organization Cost Efficient Dynamic IT Strong IT The CIO is a empowerment business value The CIO is a commodity provider enabler Mandate Chaotic IT Legacy IT Weak The CIO is a failing The CIO is a failing empowerment commodity provider business partner IT as a cost centre IT as a business enabler Objective
  29. 29. New technologies enable progression  By applying new technologies there is a Strong natural pull from theempower- legacy to chaotic and to Cost Efficient ment Dynamic IT cost-efficient and even IT the dynamic state  New technologies enable interim steps toMandate be bypassed and for the first time desired state is attainable Weak  As corporate IT is seenempower- Chaotic IT Legacy IT to be providing cost- ment effective joined up solutions it will be granted greater empowerment IT as a cost centre IT as a business enabler  Not all sectors aspire to Objective reach the dynamic state
  30. 30. Plotting our respondents Key AM Automotive Strong FS Financial empower- Cost Efficient Services ment Dynamic IT G Government IT L Legal AM U T MD Media MF ManufacturingMandate R Retail MF T Telecom MD U Utility Weak Chaotic IT Legacy IT empower- ment L R FS G Note with the small IT as a cost centre IT as a business enabler sample size, these may not be indicative Objective of wider sector trends
  31. 31. Individual comments on the CIO role (1)Sector RegionManufacturing (1) Expect to remain a cost centric centralised function providing services to the business, no change anticipated in futureMedia Inevitable shift in power from central IT to business units over a 2-3 year period with technology at the backbone of the businessUtility (1) Acknowledge that „old style‟ IT is gone forever, and view the CIO role as an „orchestrator‟ rather than service providerFinancial IT function perceived as defenders rather than leaders;Services perception that as confidence returns to the sector a business person will take on the role of CIO in orchestrating and managing resourcesLegal Recognise the role of CIO as managing multiple vendors while, in parallel delivering business change; express apprehension over skill availability within their preferred timescaleUtility (2) All matters relating to operation of technology will be outsourced as policy, the new role of the CIO will be as a business partner with responsibility for business process and investment planning
  32. 32. Individual comments on the CIO role (2)Sector RegionManufacturing (2) Does not foresee outsourcing as a viable strategy for their business, instead prefer to pursue a centralised integrated in- house capabilityGovernment See the role of CIO changing from policeman to facilitator and from being risk averse to being a risk manager; before this status is reached a large amount of chaos needs to be overcomeRetailer Technology must be applied to speed up processes rather than force major change; focus on investments in tools that improve timelines and the quality of decision makingAutomotive Their challenge is to be perceived as bringing harmony to a disconnected business where IT is viewed as an enabler rather than an inhibitorTelecom CIO mission is simple: “to lead the business from behind”; CIO role will become that of an orchestrator of resource in a 50/50 relationship with the business
  33. 33. Challenges, fears and ambitions CIOs unanimous in their greatest challenge of planning and implementing change in complex environments Failure to demonstrate competence leads to loss of empowerment and real anarchy within business units Universal fears around guaranteeing security and business continuity Biggest threat is the impact on the business of accidental disclosure or loss of information General perception is the role of the CIO will become a 50/50 orchestrator of prime IT vendors and business units
  34. 34. 2002 – „The Peacetime CIO‟2002 Priorities – ERP, off-shoring,ecommerce, outsourcing, refresh,consolidation CIOs pursuing similar strategies
  35. 35. 2012 – „The Wartime CIO‟2012 Priorities – Mobile? Cloud?Social? Big Data? BYOD?Shadow IT? Security threats?Disruptive technologies, inconsistent strategies
  36. 36. The changing role of the CIO Provider Orchestrator (builder & (integrator & operator) co-ordinator) From Technology Controller… …to Business Enabler Policeman Facilitator (controller & (enabler & enforcer) innovator)
  37. 37. The findings 1. Assessment of the business impact of the four „mega trends‟ 2. How the role of the CIO and business functions will change 3. Reaction to the trends presented in Fujitsu Technology Perspectives
  38. 38. CIO ranking of Technology Perspectives HigherImportance Business Choice: The New Big ‘I’ Little ‘T’ Social Working without borders One-size-fits-all Mobile is Dead, People First Real-time Insight Crowding Out Long Live Mobile Every ‘Thing’ Reshaping Trading Places Crowding Out Connected Organisations
  39. 39. Want to hear more? Andoid App Blog Website /details?id=com.technologyperspectives Apple iBook Kindle Book technology-perspectives/id515318344?mt=11 Perspectives-ebook/dp/B007PQRXWK/ref=sr_1 _1?ie=UTF8&qid=1335255077&sr=8-1
  40. 40. For further informationFor more information on this survey and the issues it raises oron Technology Perspectives generally, please contact:David Gentle ( Mark Locke ( of the CITO, International Business