Harvey Nash - Unveiling the 2013 CIO Survey Findings


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The 2013 Technology Leader: From peer indifference to long overdue reverence

Are you finding your influence is expanding beyond IT, but consequently limiting control of your overall technology vision?

Explore the Trends Influencing Today's Technology Leaders

Webinar host, Harvey Nash Managing Director and SVP of International Technology Solutions Anna Frazzetto discusses:
--How technology leaders plan to bridge the innovation gap
--The impact of disruptive technologies to CIO/CTO priorities
--Why technology leaders have more strategic influence but less control
--What technology skills are hot this year

CIOs and CTOs are more influential than ever, but they need to collaborate with a greater number of partners, both inside and outside their organization, to achieve their technology vision according to the recent findings from the 2013 Harvey Nash CIO Survey. To learn more about the latest developments around influence, control, talent, career development, outsourcing, budgets and more visit www.harveynash.com/ciosurvey.

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  • Reference that there will be live tweeting and social media posts during the webinar
  • Total US respondents: 305East Coast (NJ, NY, PA, MA, MD, CT) respondents: 102 (33% of US respondents)Midwest (IL, WI, MO) respondents: 55 (17% of US respondents)West Coast (CA, CO, WA) respondents: 108 (35% of US respondents)
  • One measure of the health of an IT department is how the budgets are growing. It has been something we have been tracking for over 15 years; in fact two recessions (and recoveries) worth of data.The good news this graph depicts is that spending growth is now back at pre-recession levels. But that news comes with a little twist; the growth in technology spend has levelled out. Only time will tell where the graph leads to next year, but your own predictions (as shown in red here) suggest the trend is downward.Whilst graphics like these are excellent are showing the progress of technology from a numbers perspective, this year we also looked at how the CIO him or herself has changed since the beginning of the recession. It paints a fascinating picture
  • This budget pressure became particularly apparent when we looked at what kind of factors were getting in the way of CIOs achieving their technology vision; over one third were saying its effect was very significant and almost 8 in 10 were affected in at least some way by lack of budgets.Another big factor that the recession has brought is changing business models and priorities, something that affects 8 out of 10 CIOs.Perhaps more surprising is the third major barrier: lack of internal skills – in fact if you add Great and Some together it’s the single most widespread barrier. It suggests that business and IT have changed in recent years, and that there is a growing mismatch between what the internal team are geared up to deliver, and what is being expected of them.One other thing to draw out from this chart is that although only 1 in 8 CIOs see their relationship with the board as a MAJOR barrier, over half (56%) see that their vision would be helped by a better relationship with the board. More about that later.
  • Almost three-quarters of U.S. respondents, 71 percent, see the role of the CIO becoming more strategic. Additionally, 58 percent of U.S. CIOs now sit on the operational board oftheir organization.As the role of the CIO becomes more strategic, the percentage of CIOs who report directly to the CEO also continues to increase. In 2013 more than one-third of U.S. CIOs report to the chief executive, compared to 31 percent last year, representing an ongoing upward trend since 2010.
  • However, despite their growing strategic relevance many CIOs are seeing the level of direct control over IT declining. In what is becoming an increasingly collaborative environment it is not new for CIOs to have others get involved in technology budget decisions.In recent years with the growth of digital, mobile and social marketing, collaboration between the marketing department and the technology function is having a greater role in shaping technology budgets.As such, for CIOs to continue to exert their strategic influence it appears likely they will have to do so through the prism of great technology budget collaboration. And when looking at the data regionally, the midwest appears to be leading the charge relative to their east coast counter parts as 44% of midwest respondents indicated 10% or more of their budget is being managed outside IT compared to 37% of east coast respondents.
  • More than one-half of U.S. CIOs have indicated a technology skills shortage would prevent their organization from keeping up with the pace of change, however, this is down slightly from 56 percent in 2012. In looking at this regionally, the east coast and west coast are nearly on par with the US at 49% and 53%, respectively. Where it seems the skills shortage is having the greatest impact is the midwest at 67%.A range of technology skills are sought by U.S. CIOs today, from the traditional to the emerging. The demand for mobile skills has grown 14 percent since 2011 – as you can see in the table – and almost one-third of U.S. CIOs are looking to secure talent with mobile solutions this year. In addition, 34 percent of U.S. CIOs cite skills shortages in big data, a skills category that wasn’t even on the radar in 2011, and only emergent in 2012. However, despite the shift towards 21st century talent, it is the “classic” technology skills like enterprise architecture - sought by 42 percent of CIOs that remains the most in-demand skill overall, closely followed by business analysis (38 percent), technical architecture (36 percent) and project management (34 percent)Perhaps reflecting the growing concern of many CIOs about the risk to technology operations posed by IT threats there has been a spike in the demand for candidates with Security and Resilience skills – in 2011 only 13 percent of CIOs were seeking these skills, today that figure has doubled to 25 percent.
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  • Since 2011 there has been a steady turnover in the U.S. senior technology leadership job market, one in five U.S. CIOs - 19 percent - plan to move jobs in the next 12 months. U.S. CIOs are more proactive than at any time in the previous four years when it comes to identifying and pursing new technologyleadership opportunities.This churn exists despite 70 percent of CIOs feeling fulfilled in their current role.
  • One area of big innovation and transformation in IT has been around disruption, and this year we looked into this in more detail.U.S. CIOs believe that Cloud and Mobility solutions have big potential for generating positive advantage for their organization. Theyalso believe these disruptors have little “downside” so it’s not surprising that they dominate investment plans by U.S. CIOs in disruptive technologies over the next year.46 percent of CIOs plan to invest in Collaborations, while Social media is a priority for 41 percent and Big data a priority for 37 percent of CIOs. For a smaller proportion of U.S. CIOs, only 8 percent, will invest in Shadow IT but BYOD investment will continue to grow over the next year for about a third of CIOs.
  • Despite how positive CIOs feel about Mobile and Cloud what is very clear is that few CIOs have achieved anywhere close to what they believe is the real potential in these areas. Three quarters of CIOs have yet to do anything serious with Mobile, and almost half – 46 percent – have done little innovation with Cloud. When we look at regional results related to Cloud, the west coast is on par with the US, while the midwest is doing even less at 52%.When we open the webinar up to Q&A I'd love to hear from some of you about what you are doing in the area of Mobile and Cloud and what challenges or opportunities you are experiencing.
  • Ownership and collaboration remain important themes when exploring developments in digital and disruptive technologies. Only 12 percent of U.S. CIOs have full “ownership” of digital technology in their organization. For 34 percent of U.S. CIOs the marketing team has full ownership, but for the greater proportion (43 percent) there is a degree of shared ownership.
  • CIOs have more strategic influence than ever, but more than half -57 percent - believe they lack support from the board to realize their technology vision. There are a number of ways to respond to this, but thumping the boardroom table and demanding more control of strategy development that shapes IT deliverables is not to way to achieve it, as we shall now see…
  • The CIO is increasingly no longer the only executive around the board room table responsible for the procuring and management of technology. As more businesses put technology at the heart of their growth strategy it has become more important than ever for CIOs to use their influencing skills, and their ability to educate their C-level peers, on the importance of enabling the technology innovators to put their skills to work and turn the technology vision into real business success.The CIO of the future will be increasingly required to influence the business rather than merely controlling systems and hardware, their value will not be judged by the value of his or her IT estate, it will be by their relationships.
  • Another aspect of influence is who you are influencing. Although almost two thirds of CEOs favor technology projects that 'make' rather than 'save' money, the CIO collaborates least well with the Marketing and Sales function, compared to the Operations and Finance departments.Incidentally, when we looked CEOs favor for projects that ‘make’ versus ‘save money’, 72% of Midwest CEOs prefer projects that ‘make money compared to 61% of east coast respondents.
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  • U.S. CIOs remain confident of the potential for technology innovation to enhance competitive advantage. Seventy-five percent of respondents believe there is great innovation potential in their industry,up two percent on 2012 figures. However, there is a growing gap between the innovation potential and innovation reality for many U.S. organizations. Only three percent of U.S. CIOs believe the innovation potential in their organization has been fully realized, and less than one-quarter feel it has been mostly realized. When we look at the data regionally, West coast respondents are fairing best with 39% indicating their technology innovation potential has been fully or mostly achieved. The greatest gap appears to be in the Midwest with 0% of respondents indicating they have full achieved their technology innovation potential and only 17% saying it was mostly achieved.For the majority - 69 percent - innovation potential has only been “partly” achieved and, for four percent of U.S. CIOs, it has not been achieved at all.
  • This time last year we
  • Harvey Nash - Unveiling the 2013 CIO Survey Findings

    2. 2. About Harvey Nash:Unique portfolio of services Executive Search IT Recruiting IT Outsourcing/OffshoringGlobal footprint: USA, Europe, Asia Over 7,000 people working across 40 offices worldwide 4,800 resources in Vietnam Serving leading global enterprises, small and mid-size businesses,governments and global institutions
    3. 3. Offshoring & outsourcing road warriorMember: HDI Strategic Advisory BoardPublished author & industry presenterAnna FrazzettoSVP & Managing DirectorInternational Technology Solutions
    4. 4. #hnciosurvey@harveynashusa
    5. 5. CIO Survey 2013Key Findings
    6. 6. The survey:2,039 global participants$103B technology spend15 years of global data
    7. 7. CIO Survey 2013Global Tracking
    8. 8. % CIOs whose budgets have grownSource: Harvey Nash CIO Survey 201333%26% 25%28%39%44% 43%38%0%5%10%15%20%25%30%35%40%45%50%2007 2008 2009 2010 2011 2012 2013 2014Budget Growth
    9. 9. 6%9%13%13%13%14%16%30%31%35%43%42%38%48%43%41%39%53%51%44%Lack of support - peersToo much tech changeUnreliable suppliersLack of the right external skillsLack of support - boardBusiness not ‘bought into’ ITCurrent structure of IT teamLack of the right internal skillsChanging business prioritiesAvailability of budgetsGreatSomeTo what extent have these factors stopped you from achieving your tech vision?Source: Harvey Nash CIO Survey 2013Barriers to achieving vision
    10. 10. CIO Survey 2013U.S. Tracking
    11. 11. CEO reportingPercentage of U.S. CIOs reporting to CEO: 2010 to 2013Source: Harvey Nash CIO Survey 2013
    12. 12. IT budget controlPercentage of U.S. CIOs with more than 10 percent of IT budget controlled outside IT functionSource: Harvey Nash CIO Survey 2013
    13. 13. Skills shortage evolutionChange in demand for IT skills by U.S. CIOs: 2011-2013Source: Harvey Nash CIO Survey 2013
    14. 14. Which of the top three ‘new’skills are most in demand in yourorganization?a) Big datab) Mobilec) Social media
    15. 15. Percentage of U.S. CIOs actively seeking and applying for jobsSource: Harvey Nash CIO Survey 2013CIO career
    16. 16. CIO Survey 2013KeyFinding:Disruption
    17. 17. DisruptionPercentage of U.S. CIOs who view disruptive technologies positively with a view to invest in the coming yearSource: Harvey Nash CIO Survey 2013
    18. 18. DisruptorsTo what extent have mobile / cloud been implemented?Source: Harvey Nash CIO Survey 2013Mobile Cloud
    19. 19. CIO Survey 2013KeyFinding:Collaboration vs.Control
    20. 20. Innovation CollaborationInnovation collaboration, who “owns” digital technology?Source: Harvey Nash CIO Survey 2013
    21. 21. More than half (57percent) believe theylack support from theboard to realize theirtechnology visionChangingControl
    22. 22. CIO Survey 2013KeyFinding:Influence
    23. 23. CIO“The Naked CIO”
    24. 24. 4%11%20%25%0%5%10%15%20%25%30%Operations Finance Sales MarketingNot strongNot strongInfluenceHow strong would you rate your department’s relationship with the following functions?Source: Harvey Nash CIO Survey 2013
    25. 25. Which function does IT have thebest relationship with in yourorganization?a) Operationsb) Financec) Salesd) Marketing
    26. 26. CIO Survey 2013KeyFinding:InnovationGap
    27. 27. InnovationGap75% see ‘great’ innovationpotential for their company…but only 3% feltinnovation had been fullyachieved.
    29. 29. Anna FrazzettoAnna.Frazzetto@harveynash.comwww.harveynashusa.com#hnciosurvey@harveynashusa