2011 2012 trends in business and it

Report
Trends in IT – 2011/2012

Results International Strategic Information
Management Survey

22 March 2011

Barry Derksen (BITTI)

In cooperation with:
Stevens Institute, bITa-center, CIOnet, NOVI, XIIM

BITTI.nl

BITTI is a research, benchmark & assessment institute
using a standard approach:
Phase I Phase II Phase III
Scope Diagnose Plan Improvements
Agree Gather Data Synthesised Identify Final
Objectives Review / Interpret / Hypothesise Findings Opportunities Report
Individual Findings

‘Questions’ Strategic Alignment & priorities
Organisation & governance
IT Financials
Culture
(Concern) applications
ASL / CMMI / ITIL / BISL measur..
End User Computing
Customer /user satisfaction
Questions &
answers
+
Detailed findings

© BITTI b.v. - 2011

Agenda

1. Importance of IT management issues

2. Trends in top management concerns

3. IT Trends

4. IT budgets trends

5. CIO trends

6. Alignment trends

7. Research method

© BITTI b.v. - 2011

Headlines - IT management 2011

• Global (source: Jerry Luftman)
– State of IT is Resilient
– Progressing Towards Pre-Recession Levels
Pre-
– Cautious Improvements in IT Spending
– Judicious Increases in Hiring & Salaries; Minimum Downsizing
– Working Effectively With Business Partners
– HR Not a Major Focus Area
– Do IT Professionals Possess the Right Skills?
– Offshore Outsourcing Trending Upward

• NL (source: Barry Derksen)
– Cautious Improvements in IT Spending
– Àlignment nr. 1 management concern
– Poor IT value measurements
– Business Intelligence is investment area
– Security, reliability is hot topic
– Het nieuwe werken…a typical Dutch thing
werken…a

© BITTI b.v. - 2011

Agenda

3. IT Trends
5. CIO trends
6. Alignment trends
7. Research method

© BITTI b.v. - 2011

Top 10 IT management concerns
NL versus global
T o p 10 IT ma na g e me nt c o nc e rns b y S IM re s p o nd e nts , 2003-2011
IT ma na g e me nt c o nc e rns 2011 -N L 2010 2009 2008 2007 2006 2005 2004 2003
Business Productivity and cost reduction 2 1 1 7 4
Business agility and speed to market 7 2 3 13 17 7 5 7
IT and business alignment 1 3 2 1 2 1 1 1 1
IT reliability and efficiency 3 4 6
Business Process Management / re-engineering 6 5 4 18 15 11 5 10 10
IT strategic planning 8 6 7 3 8 4 4 4
Revenu generating IT innovations 16 6 8
IT cost reduction 5 8 5 7 4
Security and privacy 4 9 9 8 6 3 2 3 3
Globalization 20 10 15
Knowledge management 9
Change management 10

• Business Productivity & cost reduction in top 3 global and NL
• Business & IT alignment in top 3 global and NL
• NL: higher priority to IT cost reduction in comparison with global research.
• NL: higher priority to security & privacy

• NL: productivity improvement & cost reduction, both in business & IT.
• Global: use IT possibilities to create productivity & cost reduction in the business!

Source: BITTI, Stevens Institute

© BITTI b.v. - 2011

Top IT management concerns
global perspective
T o p IT ma na g e me nt c o nc e rns 2011 NL Euro p e US As ia / Aus tra lia
Business & IT alignment 1 3 3 6
Business productivity & cost reduction 2 1 1 13
IT reliability and efficiency 3 6 4 18
Security & privacy 4 9 19
IT cost reduction 5 5 8 15
BPM and reengineering 6 2 5 7
Business agility & speed to market 7 4 2 9
IT strategic planning 8 7 6 18
Knowledge management 9 15 13
Change management 10 11 9
Enterprise architecture 11 13 7
Project management 12 15 15
CIO leadership role 13 18 4
Outsourcing / vendor management 14 8 12 4
IT organization design 15 19 9
Revenu generating IT innovations 16 9 6 15
Sourcing decisions 18 10 17 2
IT HR considerations 19 14 9
Globalization 20 10 1

• Enormous differences between Europe/US and Asia/Australia
• IT management concerns Europe & US more aligned in comparison with Asia/Australia
• Outsourcing/vendor management concerns of higher importance in Asia/Australia
• Asia/Australia oriented on globalization whereas NL doesn’t see the challenges in that!

© BITTI b.v. - 2011

Trends in IT
top 5 trends
N L e xp e c ta tio ns 2011-2012 NL U SA Euro p e As ia /Austra lia
Cloud Business Intelligence Business Intelligence ERP Cloud Computing
Green data centre Virtualization Virtualization Business Intelligence Mobile & wireless applications
BPM (business Process Mngt.) The new way of working ERP Cloud computing Virtualization
The new way of working SOA Continuity planning/disaster recovery Microsoft upgrade SaaS
SaaS Microsoft upgrade cloud computing BPM Networks/communications

• ‘new Worlds of work’ is huge in NL!
• ERP is more common in NL
(operational/large investments at 61%)
• Microsoft upgrade is an European IT Trend (licences?)
• Asia/Australia network and cloud oriented (see also IT
management concern outsourcing)


© BITTI b.v. - 2011

Trends in IT - NL
What is operational / will be operational shortly
ITIL, IT process management 65,5%
antivirus protectie 60,7%
business intelligence 60,7%
security 54,8%
identity & access management 52,4%
netwerken,communicatie 51,2%
Het nieuwe werken 51,2%
medewerker portals 50,0%
Microsoft upgrade 48,8%
Business Process Management 47,6%
customer relation management (CRM) 47,6%
kennis management 46,4%
asset management 45,2%
server Virtualisatie 45,2%
voice over IP (VoIP) 41,7%

• ITIL is a non issue in NL
• Security is largely operational but is an investment area as well
• Rising: BI, BPM, HNW, virtualisation

© BITTI b.v. - 2011

2010 IT budget in comparison to 2009 (Actual)

Europe US Asia/Australia
Europe US Asia/Australia 37% 35% 21%
34% 34% 51%
NL;
NL; increase; decrease;
25% 29%

NL; equal;
46% Europe US Asia/Australia
29% 31% 28%

• NL has most stabile IT budget policy despite recession
• Difference in IT innovation / profits from business productivity in
future years might be point of attention.


© BITTI b.v. - 2011

2011 IT budget in comparison with 2010
Europe US Asia/Australia 15% 27% 18%
increase; decrease;
29% 38% 57%
28% 29%

equal; 43%

56% 35% 25%

• NL invests a bit more in IT in 2011 in comparison with
Europe
• US/Asia/Australia are more willingly to invest in the
possibilities of IT.


© BITTI b.v. - 2011

IT budget allocation
Europe US Asia/Australia Europe US Asia/Australia
20 7 7 5 5 4
12 10 12

3 3 5

25 43 32
35 32 40

• NL has a significantly higher % IT staf internal – domestic
• Including own hardware/network/software (see also cloud in priority list)
• Europe has significantly more outsourced domestically in comparison with NL

© BITTI b.v. - 2011

IT budget divided between running existing systems and
building/buying new systems
70%

60%

50%

40%

30%

20%

10%

0%

Percentage allocated to Percentage allocated to
running existing systems building/buying new systems

• Previous difference between Asia/Australia in comparison
with other continents is confirmed in the IT budget allocation
• Cautious investments growth in building/buying new systems

© BITTI b.v. - 2011

Investing in people, IT budget allocated for
education/training

7,00%

6,00%

5,00%

4,00%

3,00%

2,00%

1,00%

0,00%
NL Europa US Asia/Australia

• In 2011 the for education/training allocated IT budget
increases with 12,4% towards 3,71% of total IT budget.
• Both US and Asia/Australia invest more in education/training


© BITTI b.v. - 2011

IT budget as % of corporate revenue(Europe)

IT BUDGET:3%
10.3%
(9.0%) IT BUDGET:4%
8.62%
(8.0%)
IT BUDGET:5%
5.17%
(13.00%)

IT BUDGET:2% 34.54%
42.1% IT BUDGET:7%
64.46% (24%) 1.7% 48% 68%
(3.0%)
52% 32%
IT BUDGET:8%
5.17%
IT BUDGET:10% and (3.0%)
more
11.44%
(7%)

IT BUDGET:
1% or Less
12.06%
(19.0%)
Average Europe: 3.59
3.87 5.8

2010 NL Average 5.37
Source: Stevens Institute
© BITTI b.v. - 2011

Agenda

3. IT Trends
5. CIO/IT management trends
6. Alignment trends
7. Research method

© BITTI b.v. - 2011

Europe US Asia/Australia CIO or senior IT executive reports to
7% 4% 5%

9% 10% 12%

2.97* 43% 44% 68%
3.26*
2.79*
13% 11% 5%

*alignment maturity
Source: Prof.dr. J. Luftman

29% 31% 10%

• Progression in role CIO importance since mid’90 (NNC
report)
• Interesting difference in share reporting to board of directors
(double in comparison with continents)
• Higher alignment when reporting to CEO (or equal)

© BITTI b.v. - 2011

How long has your CIO held his position?
6 Years 7 Years 51% > 3 Years
4%
(5%)
4% 52% 58%
5 Years (4%)
4 Years 8%
11% (6%)
(9%)

>7 Years
24%
3 Years (28%)
23%
(9%)

<1 Year
2 Years 8%
14% 1 Year (15%)
(20%) 4%
(4%)
49%=< 3 Years
48% 42% 2010 Europe Average: 4.5 Years
NL average: 4.32
5.10 4.52
Source: Stevens Institute
© BITTI b.v. - 2011

How CIO’s spend their time (NL)
10% 6% 4% Europe US Asia/Australia
7% 7% 12%

9% 7% 5%
12% 11% 12%

11% 9% 10%

10% 11% 10%

11% 12% 13%

• NL less outsourced/offshored = less relationship vendor
• Relatively lot of time to operations management (result
capability maturity?)
• Less time on relationship management business & IT

© BITTI b.v. - 2011

Europe US Asia/Australia Your current CIO is hired from
13% 4% 2%

5% 4% 7%

37% 38% 56%

• 31% of current CIO’s is from outside the organisation
• 69% of current CIO’s has an IT background in comparison
with 82% in Europe and 92% in US


© BITTI b.v. - 2011

2010 IT Organization

Centralized
65.6% 68% 45%

(68%)
*2.87
Decentralized
*2.64 9.4%
Federated-
(2%)
Hybrid
2% 15%
23.0%
(28%) *3.03
Networked
2.0% 28% 25%

(2.0%) 2% 15% © BITTI b.v. - 2011
* Alignment Maturity

Nr. 1 NL priority – Business & IT alignment
time goes to...

• Communication is largest part of consumed time in relation
to alignment
• Value measurement consumes little time and is lowest factor
in alignment research NL (improvement area)

© BITTI b.v. - 2011

Contact information:
BITTI bv.
Tel. 071-8795174
info@bitti.nl

Barry Derksen MSc MMC CISA CGEIT RI
Mob: +31(0)652078861
Email: barry.derksen@bitti.nl

BITTI.nl

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