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The Evolution of IT: What's Really Holding IT Back?

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In March, the KPMG CIO Advisory practice in Management Consulting launched a quarterly webcast series, The Evolution of IT. The program is facilitated client panel discussion centered on strategic issues facing CIOs.
The CPE questions from the inaugural webcast were published as a poll, What’s Really Holding IT Back? The poll features infographics coupled with relevant panelist quotes from the program.

Published in: Business, Technology

The Evolution of IT: What's Really Holding IT Back?

  1. What’s really holding IT back? © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
  2. KPMG recently held a Webcast entitled “Evolution of IT: Creativity, Flexibility and Operational Discipline.” The Webcast featured a discussion with IT executives who shared their thoughts on innovation and disruptive technologies. Throughout the program, more than 600 IT leaders were polled on their views. Here are some of their insights. Evolution of IT: What’s really holding IT back? © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
  3. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 2 Q: Which trend is the most disruptive? Insight: “We are a B2B company, but with the Affordable Care Act, we see our industry going to products for individuals very quickly. People are wanting to buy insurance on mobile phones and iPads. So it’s important to know where you’re going to go.” Patrick Steele Delta Dental of California, Vice President & CIO CLOUD SOCIAL MEDIA UNKNOWN A COMBINATION OF TWO OR MORE OF THE ABOVE MOBILE BIG DATA Evolution of IT: What’s really holding IT back?
  4. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 3 Q: How interested are your business leaders in embracing new technologies? Proactively pursuing a two-way dialog with IT Unknown Waiting for IT to deliver ideas Hesitant to explore new ideas Insight: “It’s important to be on time and under budget. But today, we look at business outcomes versus a specific technology—did we make an operational contribution to the organization?” Michael Rhymes Vice President of Information Technology & Business Systems Eaton Evolution of IT: What’s really holding IT back?
  5. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 4 Q: What is the biggest driver for your organization to explore new technologies? Insight: “We have a new role in IT where one of our people sits at the table with the business leaders’ organization to drive new solutions, new thinking, and innovation rather than trying to innovate in a vacuum.” Robert Lux Senior Vice President and CIO Freddie Mac IMPROVING PRODUCTIVITY LOWER COST ENABLING BETTER MANAGEMENT DECISIONS BETTER CUSTOMER INTERACTION IMPROVING ROI IN IT INVESTMENTS OTHER Evolution of IT: What’s really holding IT back?
  6. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 5 Q: Are you using predictive analytics? To some extent Unknown Have not started thinking about this To a great extent Insight: “We used to use brokers to assess a property’s value. Now we also use predictive analytics. By getting homes on the market quicker and more accurately priced, we’ve created significant value for our company and our country.” Robert Lux Senior Vice President and CIO Freddie Mac Not something it should focus on Evolution of IT: What’s really holding IT back?
  7. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 6 Q: How will your organization source most of its new technology in the future? Blend of outsourcing and cloud (public/private‒ infrastructure and SaaS) Continued use of traditional IT outsourcing Bring more outsourcing back in house Buy it as a packaged service (provider manages process, technology, people)Insight: “Hybrid sourcing, SaaS, and cloud will predominate, but some will continue with traditional outsourcing while others, taking a lead from GM, will bring it back in-house.” Matt Bishop Partner, CIO Advisory KPMG Majority use of cloud (public/private‒ infrastructure and SaaS) Evolution of IT: What’s really holding IT back?
  8. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 7 Evolution of IT: What’s really holding IT back? Q: Is the IT organization innovative? Insight: “The pace of change is going to be the challenge. It’s not only about what matters, but more importantly, helping the organization understand why it matters.” Michael Rhymes Vice President of Information Technology & Business Systems Eaton
  9. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 8 Q: What is the greatest inhibitor to IT innovation? It’s structure, processes, and standards IT management does not create the environment for personnel to innovate Lack of innovative personnel within the IT organization It’s reluctance to take risks Analysis: Systemic issues are the primary cause for a lack of IT innovation, with 66% citing environment or structure, processes and standards. Less than 20% blame a lack of innovative personnel. 16% cite a reluctance to take risks. Evolution of IT: What’s really holding IT back?
  10. Please join the ongoing series—and the conversation. www.kpmg.com/us/CIOagenda To register for Webcasts and read related insights Next in the series: July 16, 2013: The Business of IT: The Need for Change Replay (and the source for this poll): Evolution of IT: Creativity, Flexibility, and Operational Discipline Evolution of IT: What’s really holding IT back? © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
  11. Contact Us Matthew T. Bishop Partner, CIO Advisory mbishop@kpmg.com +1 (214) 840-2749 © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

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