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04 Dec 2017

IDC New Zealand's C-Suite Study 2017: Decision Making Lines Blur as C-suite partners align for transformation.

AUCKLAND, 5 December 2017 – IDC New Zealand has released its 2017 C-Suite Barometer survey findings. The annual survey was conducted in June 2017 and surveyed 223 New Zealand organisations which comprised of 80 CIOs and 143 New Zealand C-suite executives (CxOs) including CEOs and executives from finance, marketing, and operations.

"Increasingly the lines are blurring between who funds and decides on technology investments", says Louise Francis, Senior Research Manager, IDC New Zealand. "Multiple stakeholders from the C-Suite now have a greater role in determining where ICT budgets will be directed, what technologies will be adopted and the areas of digital transformation that will shape the strategic direction of the business."

Key highlights in this year's report includes:

Escalating costs are becoming a big headache for CEOs. Cost are once again at the top of the CEO's agenda but this time it is being driven by multiple factors; The need to change business models to keep up with competitors, changing customer behaviours, operating in a global market and overcoming the commoditisation of products and services.

A Digital Transformation (DX) strategy is now considered a must have, but most organisations are still light on the detail. 83% of New Zealand organisations say they have a DX Strategy but only a fifth are aggressively using DX to compete.

The emergence of a digital leadership team reflects the growing status of digital as the lifeblood of a successful organisation. 65% of businesses told IDC that they now have a digital leadership team. On average, there are four C-suite executives on the team and 43% said that the CEO is the primary leader.

DX metrics are business metrics: DX outcomes can be difficult to identify and measure. However, since the board and CEO are driving DX strategies it will be critical to define the right business metrics. In New Zealand, the top three metrics are Market recognition (digital leader), share in digital marketplaces, and market share growth

Line of Business (LOB) influence of ICT budgets continues to rise. 61% of the LOB now fully/partly funds ICT (55% in 2016). At this rate, the LOB will be pervasive across almost all ICT budget decisions by 2020. This does vary by industry and company size putting success metrics under the spotlight (see the chart below).

Change management is the biggest obstacle in business transformation. Cultural change management is integral but it will be the biggest challenge and ultimately the most critical success factor for value creation from DX investments in technology, process, and people. But, 52% told IDC that cultural change management is still a big barrier to embedding smart IT into the organisation.

Integration is the big CIO priority for 2018. Innovation is the alluring part of DX but the integration stage is where the real business benefits and value emerges. However, 60% of organisations are still exploring options or struggling to make integration work within the organisation. Legacy systems, disparate DX initiatives that don't gel with each and a lack of integration capabilities are amongst the big challenges facing CIOs grappling with the integration dilemma.

"Digital transformation is inseparable from business transformation and that requires a willingness and intent to collaborate for business success,” says Francis, "But intent only translates into business success if cultural change is addressed, business metrics need to be clearly defined and legacy systems must be decluttered to set the stage for integrating digital innovation into the business framework."

-Ends-



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For further information on the IDC report New Zealand C-Suite Barometer, 2017: Collaborating for Digital Transformation Leadership, IDC #AP42746017, please contact:

Louise Francis

Senior Research Manager – IT Spending

IDC New Zealand

+64 9 374 6681

lfrancis@idc.com



Coverage

Regions Covered

New Zealand

Topics Covered

Digital transformation

Contact

For more information, contact:

Louise Francis
lfrancis@idc.com
006493746681