P. Fehér - Z. Szabó - Hope? Analysing Enterprise IT practices in Hungary, 2009-2013

380 views

Published on

Presentation on the 10th International Symposium on Business Information Systems, Győr, Hungary

IT department of the Hungarian enterprises had to deal with several challenges in the last 5 years of the economic crisis: inevitable cost reduction, crisis solutions, limited IT development opportunities.
The Corvinus University of Budapest conducts a research since 2009 among IT conscious enterprises, analysing the change of IT budgets, applied crisis solutions, development areas, perceived role of IT, IT strategy, IT infrastructure and service management practice. Beside using survey results, the practice of selected enterprises was explored via case-study methodology, therefore research results are based on both quantitative and qualitative methods.
Research results indicate a patience waiting behaviour of the enterprise, and showing a hopeful attitude.
In the case of IT budgets, close to 40% of enterprises applied no change comparing to the last year’s budget, and additional 50% changed it only slightly, even increasing or decreasing the volume. As average, the size of IT budget is practically did not change. Comparing to the last 4 years, this is a first year, where no average decrease in IT budgets were found, although there is no sign of growth.
In this situation there is no need for exceptional crisis measures: decreasing salaries of IT employees or layoffs are far not so common as before. The goal of most widespread measures is to enhance internal effectiveness, including better business case development, more conscious financial analysis of IT projects, renegotiating supplier contracts and rationalising IT services.
The planning period of IT strategies did not change over the researched years: it is still around 3 years, while ~80% of the enterprises have formal IT strategy.
The most targeted development area is still related to IT operations, enhancing operational practice, among two-thirds of the enterprises. Mobility developments becase second and 45% of enterprises indicated plans on this area. Meanwhile enterprises plans fewer projects in other areas. Cloud-related developments dropped by almost 50% comparing to last year, and IT service management plans are also decreased to 26%

Published in: Business, Travel
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
380
On SlideShare
0
From Embeds
0
Number of Embeds
119
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

P. Fehér - Z. Szabó - Hope? Analysing Enterprise IT practices in Hungary, 2009-2013

  1. 1. Partners: HOPE? ANALYSING ENTERPRISE IT P RACTICES IN H UNGARY 2 0 0 9 - 2 0 1 3 Dr. Péter Fehér pfeher@informatika.uni-corvinus.hu Dr. Zoltán Szabó szabo@informatika.uni-corvinus.hu I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  2. 2. The economic crisis is still not over – at least not in Hungary Source: Fehér, P (2009) The Challenge of IT in Downturn, OGIK Conference, Győr I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  3. 3. Partners: IT Budget I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  4. 4. 3 Years Delay in the Stabilization of the IT Budgets 2009 2010 2011 2012 1% 0,5% 2013 0,01% -0,50% -1,1% -1,8% -2,9% -4% -8,1% International Hungary -11,3% I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  5. 5. IT budgets did not change radically (2012-2013) 30% 60% 50% 40% 31% 2013 30% +0.01% 39% 26% 24% 20% 10% 3% 0% I T S M Research 2013 4% Decrease (> 20%) Decrease (10-19%) 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 2% Decrease (1-9%) Owners State: 21% Domestic: 31% International: 48% No change Respondents Top Manager: 56% Manager: 33% Other: 11% Increase (1-9%) 3% Increase (10-19%) Increase (> 20%) Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  6. 6. The change of IT budgets depends on the role of corporate IT Decreasing IT budget Increasing IT budget (5) 2013 (5) (5) 2,26 3,70 3,02 IT is important in IT is critical part of competitive business products or differentiation services I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% (5) Owners State: 21% Domestic: 31% International: 48% 3,97 IT is important in IT is critical part of competitive business products or differentiation services Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  7. 7. Share of IT operations increased in IT budgets 100% 0% 90% 10% 37% 80% 70% 44% 20% 30% 60% 40% 50% 50% 40% 60% 30% 70% 20% 63% 56% 80% 10% 90% 0% 100% IT operations 2012 I T S M Research 2013 IT operations 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% IT Developments 2013 Respondents Top Manager: 56% Manager: 33% Other: 11% IT developments 2012 Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  8. 8. Partners: Reporting lines I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  9. 9. IT is loosing its strategic importance Reporting lines of the CIO (2010-2013) 60% 55% 56% 53% 50% 40% 40% 30% 21% 20% 20% 26% 23% 19% 13% 16% 14% 10% 0% 2010 2011 COO I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 2012 CEO Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% 2013 CFO Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  10. 10. IT departments under CFO supervision should suffer strong cost control IT budget as % of revenue Change of IT Budget IT Strategic planning (years) 8,1% 1,9% 3,6 1,5% 2,9 5,3% CEO COO 2,8 CEO COO CFO 2,1% CEO I T S M Research 2013 COO -3,3% CFO 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% CFO Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  11. 11. CFO driven IT practice is cost controlled, and neglecting innovation CEO 3,96 COO CFO 3,95 3,50 3,60 3,63 3,60 3,54 3,46 3,43 3,24 3,15 3,19 3,15 2,93 2,84 2,81 2,31 1,95 Role of IT is to increase business efficiency I T S M Research 2013 IT is critical for Role of IT is to IT is the main initiator delivering business provide IT services in of business innovations lowest cost innovations 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% IT is important in competitive differentiation Role of IT is to decrease business costs Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  12. 12. IT cannot became a commodity for Hungarian organizatons 15,38% Share of organizations using mainly outsourced IT services 8% 1,96% No0% data 2010 I T S M Research 2013 2011 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% 2012 Respondents Top Manager: 56% Manager: 33% Other: 11% 2013 Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  13. 13. The popularity of corporate IT service centers increased 14% Share of organizations using mainly corporate IT service centers 9,15% 4,62% 2% 2010 I T S M Research 2013 2011 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% 2012 Respondents Top Manager: 56% Manager: 33% Other: 11% 2013 Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  14. 14. Partners: Role of IT I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  15. 15. The tight relationship between Business and IT was only temporary? 4,2 4 3,8 Business understands the role of IT 3,6 Efficient partnership between Business and IT 3,4 3,2 Basic IT services are provided in the required quality 3 2,8 2,6 2009 I T S M Research 2013 2010 2011 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 2012 Owners State: 21% Domestic: 31% International: 48% 2013 Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  16. 16. Business side perceives better cooperation between Business and IT +23% +28% 4,08 4,08 3,31 3,2 IT Business Business understands the role of IT I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Efficient partnership between Business and IT Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  17. 17. Partners: Pressure and opportunity I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  18. 18. There is a change in some crisis-measures 52% Business feasibility plan based projects 51% Renegotiate supplier contracts 45% Service rationalisation 44% Stop hiring new employees 34% Postpone procurements 24% Limited consulting contracts 23% Limited development contracts 18% Non-planned layoff 7% Salary reduction 0% 2013 I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 10% 2012 Owners State: 21% Domestic: 31% International: 48% 20% 2011 30% 2010 Respondents Top Manager: 56% Manager: 33% Other: 11% 40% 50% 60% 70% 2009 20 Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  19. 19. Planning for further measures decreased since last year 26% Renegotiate supplier contracts 25% Limited development contracts 24% Limited consulting contracts 22% Business feasibility based projects 16% Postpone procurements 9% Non-planned layoff 8% Stop hiring new employees 7% Salary reduction 0% 2013 I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 10% 2012 Owners State: 21% Domestic: 31% International: 48% 20% 2011 30% 40% 2010 2009 Respondents Top Manager: 56% Manager: 33% Other: 11% 50% 21 60% 70% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  20. 20. There is a general decrease in further development plans 66% Operations optimalisazion 45% Mobility* 38% Process development Change in operation models 27% ITSM development 26% IT risk management 25% Cloud computing* 23% Project management development 23% 19% Open source 11% Identity management* 0% *New since 2012 I T S M Research 2013 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 10% 2012 Owners State: 21% Domestic: 31% International: 48% 20% 2011 2010 Respondents Top Manager: 56% Manager: 33% Other: 11% 30% 2009 40% 50% 60% 70% 80% Planned projects is 2013 22 Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  21. 21. Plans for cloud computing implementation dropped drastically over a year -44.1% 41% 23% Share of companies planning cloud computing projects in 2013 I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 2012 Owners State: 21% Domestic: 31% International: 48% 2013 Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  22. 22. Partners: IT infrastructure and management I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  23. 23. Main applications ERP 77% Document Management 67% Groupware 53% Workflow 47% E-business 43% Business Intelligence 43% 0% I T S M Research 2013 10% 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 20% 30% Owners State: 21% Domestic: 31% International: 48% 40% Respondents Top Manager: 56% Manager: 33% Other: 11% 50% 60% 70% 80% 90% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  24. 24. Application areas Finance Accounting Executive Information Systems Payroll HRM Inventory Management Sales Procurement Logistics Controlling System Production/Manufacturing Marketing Technology Development Quality Management Organisational Development 85% 80% 72% 67% 63% 62% 60% 58% 53% 52% 50% 48% 43% 42% 32% 0% 20% 2013 I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% 40% 60% 80% 100% 2010 Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  25. 25. Decreasing importance of process innovation in IT (BPM, BPR, Lean IT) 59% Ratio of organizations initiating process management projects focusing on the IT function 57% 46% 34% 2009 I T S M Research 2013 2010 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 2011 Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% 2012 38% 2013 Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  26. 26. Decreasing popularity of ITSM projects (ITIL, MOF) Ratio of organizations initiating IT service management projetst 46% 51% 49% 30% 26% 2009 I T S M Research 2013 2010 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% 2011 Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% 2012 2013 Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  27. 27. IT strategy I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  28. 28. IT Strategy Planning 100% 90% 50% 40% 30% 20% 10% Timeframe: 3,1 years 2009 60% Timeframe: 2,9 years 78% Timeframe: 2,9 years 74% Timeframe: 2,7 years 70% 76% 83% Timeframe: 2,9 years 80% 82% 2010 2011 2012 2013 0% I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  29. 29. Major issues in IT strategy 74% Application portfolio 68% 90% 60% Procurement, Supplier policy 48% 65% 42% Standards 44% 50% 54% IT Controlling 53% 57% 46% Risk Management 53% 49% 50% Compliance 55% 52% 0% 20% 2013 I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% 40% 2012 Respondents Top Manager: 56% Manager: 33% Other: 11% 60% 80% 100% 2011 Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  30. 30. Relationship between corporate and IT strategy Business Strategy IT Strategy 40% Business Strategy 25% Business Strategy IT Strategy 18% Business Strategy IT Strategy 17% IT I T S M Research 2013 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Ideas Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu
  31. 31. Conclusions Still working in crisismode Developments are still suspended I T S M Research 2013 Share of unintentional measures decreased over a year Decreased interest for ITSM developments 1-49 FTE: 18% 50-249 FTE: 24% 250-1499 FTE: 30% 1500+ FTE: 28% Owners State: 21% Domestic: 31% International: 48% Respondents Top Manager: 56% Manager: 33% Other: 11% Corvinus University of Budapest Institute of Information Technology More Information: http://informatika.uni-corvinus.hu

×