CIO Priorities: What Keeps the CIO Awake At Night in Australia and New Zealand?
18 Sep 2012
Change is a constant for Australian and New Zealand CIOs. Unpredictable global economies and volatile demand for services means that there is an increased interest in the use of new delivery models for IT and business services. IDC observes that the role of the CIO will change in response to this new IT environment, where there is an increased emphasis on non-IT skills.
IDC's latest ANZ CIO Survey, run in April 2012 revealed that the overall CIOs reported an optimistic outlook for business prospects in the next six months. Notably, 46% of the respondents said that their IT budgets for 2012 were increased over 2011 levels – with 18% reporting an increase of above 10%. However, despite these increasing budgets, there is also a higher expectation of "more for less".
Economic conditions still make it unattractive to tie up capital in investments in new hardware and software assets, resulting in more frequent procurement of externally sourced services to fulfil business requirements while conserving capital. The expectations for an IT project to show a positive ROI within just 12 months increased to 43% in 2012 from 36% in 2010. It is these expectations which are inducing CIOs and LOB managers to look to externally sourced IT and business services as solutions to their business problems.
It is also these changes in IT and business service procurement and delivery which are again remaking the CIO role in the organisation . The CIO's responsibilities today are broadening to encapsulate a new set of expectations from the business compared to the recent past. IDC has found that the following three fundamental shifts will characterise the future state of the CIO:
Managing for service delivery excellence
Increased financial and commercial acumen
Employing the right technology for the future state of the business
CIOs are planning for a future where sourcing of business and IT services from multiple external suppliers will result in a need to manage services from multiple providers across an extended service delivery chain. In effect, the CIO becomes a service broker and manager rather than a technologist; sourcing, integrating then managing the services on behalf of their business units. For many, this responsibility will prove to be a major challenge, as IT service management (ITSM) processes are not yet fully implemented for existing on-premises applications in most organisations.
The result for the CIO will be a reliance on external brokers and integrators, and on external managers for their applications. For the IT organisation, their internal structure and capability profile shifts to address service management and financial management rather than technology management, beginning the rebirth of the IT function to an organisation-wide business support function.
CIO Priorities: What Keeps the CIO Awake At Night?, August 2012, (IDC Doc # AU2577409U) analyses IDC's ANZ CIO Survey, April 2012 (n = 365) and discusses the results and its implications both for end-user customers, as well as service providers. It examines the customer's business and ICT priorities, customer preferences for emerging new technologies, key CIO challenges in terms of future readiness of the enterprise and IDC's future outlook, amongst others.
Customers today have greater and better choices, and they will not hesitate to shift to new service providers which are able to provide a richer customer experience with higher levels of service.
There is an increasing demand for "more for less" through the substitution of asset procurement and ownership with provision of highly cost effective IT and business services. The expectations for an IT project to show a positive ROI within 12 months increased to 43% in 2012 from 36% in 2010.
The CIO's responsibilities today are broadening to encapsulate a new set of expectations from the business compared to the traditional ones. IDC identifies three fundamental shifts that will characterize the future state of the CIO.
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