Post on 27-Nov-2014
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TOP INSIGHTS FROM THE TOP IS/IT INSIDERS
SPRING, 2013 Page 2/26
INSIGHTS
At IT World Canada, we strive to provide information to technology professionals that’s useful, contextual, and community-oriented. It’s that last element that inspired CIO Census Report.
Developed in partnership with CIOCAN – the CIO Association of Canada – and sponsored by BLACKIRON Data, the CIO Census aims to take the pulse of Canada’s technology decision-making community.
From January to March, 186 technology decision-makers, from a variety of company sizes and a number of verticals, filled out our survey.
BACKGROUND
SPRING, 2013 Page 3/26
INSIGHTS
We have distilled the findings into ten key INSIGHTS and IMPLICATIONS, presenting the supporting data in chart form.
OVERVIEW
Along the way, we make OBSERVATIONS related to the insights, highlighting where overall results differ by sub-groups.
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KEY FINDINGS
SPRING, 2013 Page 5/26
INSIGHTS
1 Canada's organizations are banking on IT.
IT is investing almost 20% on new initiatives / innovation.
Where IT is always at the table, budgets allocated to IT innovation are higher.Getting a seat is related to having more types of non-IT functions reporting in.Staffing issues are more acute at organizations spending less on innovation.Mobile and Analytics are most often on wish lists, though they differ by sector.Outsourcing is poised to grow from a small base.
Outsourcing and Innovation may be related.
Twice as much is Hosted as Outsourced.
Fewer than half have an estimate for the cost of downtime.
2
3
4
5
6
7
8
9
10
KEY FINDINGS
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DETAILED FINDINGS
SPRING, 2013 Page 7/26
Year-over-Year Growth
IMPLICATION
INSIGHT1
Canada's medium and large organizations are banking on IT.
Relative to other functions, IT faces higher expectations / greater responsibility for organizational value-creation.
Not all experienced growth, but overall, IT spending outpaces economic growth.
+3.6% in Overall IT Spending
Vs.
+2.1% in the Overall Economy
(GDP, StatCan)1641
43
SMALLER
FLAT
LARGER
% of IT budgets that are….
SPRING, 2013 Page 8/26
Year-over-Year IT Budget
OBSERVATION
a Goods & Services sectors have been buoyant, while the Public sector's been soft, which may, in part, reflect the Shared Systems Initiative by the federal government.
25
4332
SMALLER
FLAT
LARGER
% that have experienced each, by sector….
PUBLIC
638
56GOODS
1140
49SERVICES
+1.2% in Overall IT Spending
+4.6% in Overall IT Spending
+5.1% in Overall IT Spending
Educational Institutions Manufacturing Insurance
Healthcare Retail/Wholesale Financial Services
Provincial Government Construction Computer/IT Services
Municipal Government Oil & Gas Business/Personal Services Federal Government Agriculture Legal Services S
EC
TO
RS
INC
LUD
E:
1
SPRING, 2013 Page 9/26
29
33
38
IT Investment in New Initiatives / Innovation
IMPLICATION
INSIGHT2
On average, IT is investing almost 20% on new initiatives / innovation.
If your organization is not investing almost 20% on innovation, it's falling behind.
MODERATE Innovation10-19%allocated
HIGH Innovation
20+%allocated
LOWInnovation
0-9%allocated
18% is spent on
Innovation, as a percentage of the
Overall IT Budget, on average
Average % of IT budgets allocated….
SPRING, 2013 Page 10/26
OBSERVATIONS
a
Services spend more of their budgets on innovation than the Public sector.
22%
17%
15%PUBLIC
Successfully pitching new initiatives seems to drive growth in overall IT budgets.
IT Investment in New Initiatives / Innovation
Average % of IT budgets allocated….
GOODS
SERVICES 20%
12%
12%
By Year-over-Year Change in IT Budget:By Sector:
2
SMALLER
FLAT
LARGER
b
18% is spent on
Innovation, as a percentage of the Overall IT Budget,
on average
SPRING, 2013 Page 11/26
OBSERVATION
a Only about one-third of IT leaders are ‘always’ involved in executive decision-making meetings.
% answering…
How Often Participate in Exec Meetings
3
31843
36ALWAYS PARTICIPATE
DEPENDS ON SUBJECT
ONLY IT-RELATED MEETINGS
RARELY / NEVER
SPRING, 2013 Page 12/26
OBSERVATION
b Leaders of Small and Large IT departments are more likely to always have a seat at the table.
3
32331
44ALWAYS
DEPENDS ON SUBJECTONLY IT
RARELY / NEVER 418
49
29
31245
39
% answering…
How Often Participate in Exec Meetings
By # of IT Staff:SMALL(1-10)
MEDIUM(11-50)
LARGE(50+)
SPRING, 2013 Page 13/26
IMPLICATION
INSIGHT3
At organizations where IT is always at the executive decision-making table, budget allocated to IT innovation is higher.
Leaders must make the case for a full-time seat so the best initiatives can be presented.
15%
21%
IT Investment in New Initiatives / Innovation
Average % of IT budgets allocated….
By How Often Participate in Exec Meetings:18%
is spent on Innovation, as a
percentage of the Overall IT Budget,
on average
ALWAYS
SOMETIMES*
* Sometimes combines ‘Depends’, ‘Only IT’ and ‘Rarely / Never’ for the sake of sample size, n=78
SPRING, 2013 Page 14/26
IMPLICATION
INSIGHT4
Getting a seat at the table is related to having more types of non-IT functions reporting in.
Taking on more functional responsibilities outside of IT seems to be a path to participation and influence.
Responsibilities outside IT% with non-IT staff reporting to them…
72% have people
reporting in from other functions, including Admin,
Customer Service, Physical Security
68%
80%
By How Often Participate in Exec Meetings:
ALWAYS
SOMETIMES*
* Sometimes combines ‘Depends’, ‘Only IT’ and ‘Rarely / Never’ for the sake of sample, n=78
SPRING, 2013 Page 15/26
OBSERVATIONS
aThe relatively few who have Operations backgrounds are much more likely to get a seat at the table. Their intimate understanding of how all the pieces come together is likely an advantage.
4
2145
32ALWAYS
% answering…
DEPENDS
ONLY-IT
How Often Participate in Exec Decisions
815
77
By Professional Background:
TECHNOLOGY
(72% of
sample)
OPERATIONS
(9% of
sample)
SPRING, 2013 Page 16/26
OBSERVATIONS
bIT leaders with Technology backgrounds are most common in Services, least common in Goods.
4
% answering…
Technology Backgrounds
846271PUBLIC
GOODS
SERVICES
By Sector:
72% have a
background in Technology vs.
Operations, Line of Business, or
Others.
SPRING, 2013 Page 17/26
IMPLICATION
INSIGHT5
Staffing issues are more acute at organizations spending less on innovation.
Rather than creating staffing issues, new initiatives seem to mitigate them.
% mentioning…
Staffing a Day-to-Day Concern
926662HIGH (20+%)
By Budget Allocated to Innovation:73% say that Staffing is a day-to-day
concern MODERATE (10-19%)
LOW (0-9%)
SPRING, 2013 Page 18/26
OBSERVATION5
Top day-to-day issues differ by sector.a
SERVICESGOODS
By Sector:
30
46
43
50
75
12
21
26
44
82
41
24
35
57
59Staffing
Data security
Flexibility
Privacy issues
Up-time reliability
% mentioning…
Day-to-Day Concerns
PUBLIC
2.2for Services
Vs.
1.8for Goods
Vs.
2.5for Public
average # of concerns…
For Services, Data Security is as big a deal as
Staffing. Privacy pops for Public.
Overall, Goods experience fewer
issues on average.
SPRING, 2013 Page 19/26
INSIGHT6
Mobile and Analytics are most often on wish lists, though they differ by sector.
SERVICESGOODS
By Sector:
21
20
30
23
36
43
43
61
9
21
24
32
38
26
71
47
14
19
24
35
30
35
54
49
% putting in their Top 3…Top Priority Initiatives
PUBLIC
Mobile`s bigger for Public, Analytics for Goods
IMPLICATION
Though there are many ties that bind IT leaders together, there are important differences as well.
Mobile device mgmt
Analytics
Cloud computing
Org. design improvements
Social business / collaboration
Virtualization
Managed services
Storage
SPRING, 2013 Page 20/26
Outsourcing
IMPLICATION
INSIGHT7
Outsourcing is poised to grow from a small base.
This is a topic that is likely to draw more public attention as pervasiveness grows.
46 42
120-5%6-24%25+%
NOW
7
63
30
NEXT year or so
11% of the IT function currently
outsourced, on average
Less Same More
SPRING, 2013 Page 21/26
IMPLICATION
INSIGHT8
Outsourcing and Innovation may be related.
It seems Outsourcing could be considered an enabler of innovation.
By Amount Outsourced:
15%
20%MORE OUTSOURCING (5+%)
LESS OUTSOURCING(0-5%)
IT Investment in New Initiatives / Innovation
18% is spent on
Innovation, as a percentage of the
Overall IT Budget, on average
SPRING, 2013 Page 22/26
IMPLICATION
INSIGHT9
Twice as much is Hosted as Outsourced.
IT Leaders have been moved more Services than Staff out of their facilities.
Outsourcing and Hosting
46 42
12
4225 32
% Outsourced % Hosted
11% of the IT
function is currently
outsourced, on average
26% of IT infrastructure is hosted, on average0-5%6-24%25+% 0-5%6-24%25+%
SPRING, 2013 Page 23/26
OBSERVATION9
The Public sector has a lot hosted.
Hosting
38 3527
56
24 21
PUBLIC GOODS
41 3524
SERVICES
0-9%10-49%50+% 0-9%10-49%50+% 0-9%10-49%50+%
29% of IT
infrastructure is hosted, on average
20% of IT
infrastructure is hosted, on average
25% of IT
infrastructure is hosted, on average
SPRING, 2013 Page 24/26
% answering…
Estimate of Downtime CostPer Hour
124246 $40
Per person per Hour is the average across sectors,
among those who know*
IMPLICATION
INSIGHT10
Fewer than half have an estimate for the cost of downtime.
If there is a need for a downtime number, $40/person per hour is a rough figure to work with.
Known
Unknown
Not Applicable
* Thinking about downtime by employee may not be the most appropriate approach for all organizations.
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SUMMARY OF INSIGHTS & IMPLICATIONS
SPRING, 2013 Page 26/26
INSIGHTS
Canada's organizations are banking on IT.
IT is investing almost 20% on new initiatives / innovation.
Where IT is always at the table, budgets allocated to IT innovation are higher.
Getting a seat is related to having more types of non-IT functions reporting in.
Staffing issues are more acute at organizations spending less on
innovation.Mobile and Analytics are most often on wish lists, though they differ by sector.
Outsourcing is poised to grow from a small base.
Outsourcing and Innovation may be related.
Twice as much is Hosted as Outsourced.
Fewer than half have an estimate for the cost of downtime.
INSIGHTS IMPLICATIONS
1
2
3
4
5
6
7
8
9
10
Relative to other functions, IT faces higher expectations for value-creation.
If your organization is not investing almost 20% on innovation, it's falling behind.Leaders must make the case for a full-time seat so the best initiatives can be presented.Taking on more functional responsibilities outside of IT seems to be a path to influence. Rather than creating staffing issues, new initiatives seem to mitigate them.
Though there are many ties that bind IT leaders together, there are differences as well.This is a topic that is likely to draw more public attention as pervasiveness grows.
It seems Outsourcing could be considered an enabler of innovation.
IT Leaders have been moved more Services than Staff out of their facilities.
If there is a need for a number, $40/person per hour is a rough figure to work with.
THANK YOU