The CIO Agenda for 2012 - Aventri · Why is Cloud Important? Cloud Business Models Drive Consumer...
Transcript of The CIO Agenda for 2012 - Aventri · Why is Cloud Important? Cloud Business Models Drive Consumer...
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What are the future IT trends and challenges of the CIO? Navigating the New ICT Stream
Crawford Del Prete Executive VP WW Business Units and Chief Research Officer
The CIO Agenda for 2012:
Jul-12 © IDC 2
Agenda
2012 CIO Budget Outlook
Four Forces of Industry Transformation and Predictions For CIOs
The Evolution of The CIO Role
Jul-12 © IDC
Top Business Initiatives for 2012
0% 10% 20% 30% 40% 50% 60%
Improve organization's ability to attract and retain workforce
Improve multi channel delivery strategy
Expand into new geographic regions/countries
Improve customer acquisition and retention
Improve organization's security and mitigate organization's risk
Increase organization's agility
Meet compliance requirements
Introduce new and/or improved products and services
Increase organization's revenue
Increase organization's productivity
Improve organization's business processes
Reduce organization's costs
3
n = 52
Source: IDC CIO Agenda Survey. November-December, 2011; Data shows % of respondents who listed as a top 3 initiative.
Select three of the following business initiatives that will be significant in driving IT spending in your organization in 2012?
Jul-12 © IDC
Top IT Initiatives for 2012
4
Which of the following will be a top 3 IT initiative in your organization in 2012?
n = 52
Source: IDC CIO Agenda Survey. November-December, 2011; Data shows % of respondents who listed as a top 3 initiative.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Video Conferencing/Telepresence
Open Source Technologies
Content Management
VOIP/Unified Communications
Converged IT
Database consolidation
Enterprise Architecture
Social Media
Smart technologies
Deliver a range of desktop and mobile devices to end users
ERP consolidation
Automate systems operations with enterprise management software and tools
Business Process Management
Application portfolio consolidation/rationalization
Enhance Security/Risk Management
Business analytics and modeling for our organizational data
Collaboration Tools
Invest in cloud services
Consolidation/Virtualization
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Changes in 2012 IT Budget’s Compared to 2011
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Increase Decrease The Same
n = 78
Source: IDC CIO Agenda Survey. November-December, 2011
5
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Drivers of IT Budget Increases
0% 10% 20% 30% 40% 50%
Positive outlook for organization’s financial performance
Merger/acquisition activity driving new spending
Positive outlook for industry and/or economy
Expanding installed base
To keep pace with new or changing industry standards
Responding to regulatory requirements
Organizational growth
Updating/Replacing outdated technology
New projects
6
n = 55
Source: IDC CIO Agenda Survey. November-December, 2011; Data shows % of respondents who listed as a top 3 initiative.
If you indicated that you expect the IT budget for your organization to increase over the next 12 months, which of the following reasons best describe why? ?
Jul-12 © IDC
Drivers of IT Budget Decreases
0% 10% 20% 30% 40%
Recent investments in IT are still being absorbed
Reduced IT requirements due to lack of organization growth/newprojects
Spending freeze due to merger/acquisition or other factors
Shift towards more in-house projects; reduced vendor reliance
Funding reallocated to higher priority projects and/or activitiesoutside of IT
Efforts to reduce IT-related redundancies within organization
Poor financial outlook for my organization
Negative outlook for industry and/or economy
7
n = 49
Source: IDC CIO Agenda Survey. November-December, 2011; Data shows % of respondents who listed as a top 3 initiative.
If you indicated that you expect the IT budget for your organization to decrease over the next 12 months, which of the following reasons best describe why? ?
Jul-12 © IDC
More Innovation in Tough Times?
0% 10% 20% 30% 40% 50%
Strongly Disagree
Disagree
Neither Agree or Disagree
Agree
Strongly Agree
8
n = 81
Source: IDC CIO Agenda Survey. November-December, 2011
“In economic downturns, I find our organization to be more innovative as we are more thoughtful about how we approach our problems”
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A New Platform Emerges
The “Third Platform” for IT industry growth is emerging, will drive the bulk of IT industry growth in 2011-2025+
Millions of new apps and services will be built on this emerging platform
These apps and services will be built on innovative mash-ups of cloud, mobile devices, mobile apps, social technologies, big data/analytics, and more
Four Forces of Industry Transformation
Cloud Mobility
Big Data/
Analytics
Social
Business
What’s the impact of Cloud, Mobile, Analytics &
Social on existing markets?
9
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Why is Cloud Important? Cloud Business Models Drive Consumer and Enterprise Divide
10
Enterprise Cloud Consumer Cloud Blended Cloud
Cloud Service and Delivery Saas Paas Iaas Public Hybrid Private
Business to Business
Security & Compliance &
SLAs are Differentiators
Provider is Trusted
Quality of Service is Important
Business to Consumer
Lack of Privacy a Reality
Consumer to Consumer
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Cloud Benefits and Challenges
11
-80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0%
Pay-as-you-go (opex) Easy/fast to deploy to end-users Pay only for what you use Allows us to reduce IT headcount Makes sharing with partners simpler Encourages standard systems More sourcing choices Faster deployment of new services
Reliability Availability,
Security, Total Cost
Time to deploy Pay for Use
Collaboration
n = 603
Source: IDCs Cloud Computing Survey, December 2010
Regulatory requirement restrictions Performance/response times Availability/service provider uptime Not robust enough for critical apps Not enough ability to customize Hard to integrate, manage w/in-house IT May cost more Security
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Applications without Borders: Application Revenue By Deployment Type
12
Q. Please estimate how much of your company's IT budget will be
allocated to buying and managing these different types of IT
services
n = 603
Source: IDCs Cloud Computing Survey, January 2011
Two primary consequences of enterprise cloud adoption:
Explosion in the number of applications that will need to integrate with existing on premise IT applications
Shifting market spend will drive enterprise cloud readiness and likely a new type of supporting infrastructure
PaaS will enable the creation of a
new set of applications that will
challenge traditional application
development models
Unlimited hardware resources
Potentially infinite number of users
APIs are crucial, lack of standards a
future issue?
Battle of the apps stores?
69%
36%
2%
21%
2% 7%
16%
9%
11%
27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2020F
Public Cloud
OutsourcedIT
Private cloud- Hosted
Private CloudInhouse
Traditional IT
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2009
Applications 49%
App Dev/ Deploy 11%
Infra-structure Software
22%
Servers 12%
Storage 9%
$16.5B
2015
Applications 36%
App Dev/ Deploy 17%
Infra-structure Software
20%
Servers 14%
Storage 13%
$72.8B
* Includes spending on Applications, Application Development & Deployment Software, Systems Infrastructure Software,
Server capacity and Storage capacity provided via the public Cloud Services delivery model.
Worldwide Public IT Cloud Services* Spending by Offering Category 2009, 2015
13
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Prediction: Information Architects Will Become One of the Most Critical Roles in the IT Organization
14
We predict that most large enterprises will define their migration to a services architecture in 2012 and be well underway by 2013. Architects will embrace business services as a defining element of the extended architecture.
We predict that IT’s core responsibilities (keeping information secure and flowing in an extended enterprise) will only become more complex.
– Cloud services, mobile, social and analytics adoption will continue to create an extended enterprise.
– Enterprise architecture will focus on: cloud services integration; security; and business process.
Business architects will own the business model and, in many cases,
reside in the business.
Prediction
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Cloud Mobility
Big Data/
Analytics
Social
Business
What’s the impact of Cloud, Mobile, Analytics &
Social on existing markets?
15
Four Forces of Industry Transformation
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Fueling the Digital Universe
16
58.2%
31.7%
6.5%
1.7% 1.1% 0.7%
Media
Cameras
Data
Music
Voice Capture
Other
2010 1.2 ZB
1000 Gigabytes = 1 Terabyte · 1000 Terabytes = 1 Petabyte
1000 Petabytes = 1 Exabyte - 1000 Exabytes = 1 Zettabyte
Source: IDC Digital Universe Study
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10MB/user 4,000TB
0.25KB/update 5TB/yr
0.125KB/update 15TB/yr
8MB/video 1,920TB/yr
100KB/photo 3,600TB/yr
12.5MB/video 3,787TB/yr
125Bytes/tweet 2.5TB/yr
1MB/photo 1,096TB/yr
0.1MB/profile 7TB
0.1MB/profile 3TB/yr
Consumption vs. Creation
17
624PB/yr 260B pg. views/mo
192PB/yr 2B vid. views/mo
9,131PB/yr 2B vid. views/day
0.5PB/yr 4.4B pg. views/mo
56PB/yr 30.4M views/day
0.2PB/yr 1.9B pg. views/mo
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10MB/user 4,000TB
0.25KB/update 5TB/yr
0.125KB/update 15TB/yr
8MB/video 1,920TB/yr
100KB/photo 3,600TB/yr
12.5MB/video 3,787TB/yr
125Bytes/tweet 2.4TB/yr
1MB/photo 1,096TB/yr
0.1MB/profile 7TB
0.1MB/profile 3TB/yr
Consumption vs. Creation
18
624PB/yr 260B pg. views/mo
192PB/yr 2B vid. views/mo
9,131PB/yr 2B vid. views/day
0.5PB/yr 4.4B pg. views/mo
56PB/yr 30.4M views/day
0.2PB/yr 1.9B pg. views/mo
Jul-12 © IDC
Business Analytics by Industry Leading Edge: First to Exploit Richer Data & Analytics
19
Q. Does your organization have a stated Business Analytics/Intelligence strategy?
n = 2,586 and 1,843
Source: IDC Vertical Research Group IT Survey, 2011
26% 14%
24% 30% 33%
46% 46% 44% 42% 40% 37% 34% 33% 31% 30% 27% 26% 25% 25% 23% 22% 21% 19% 16% 13%
60% 75%
64% 51% 48% 36%
45% 45% 47% 49% 53%
44% 55% 56% 53% 59% 60% 58% 57% 58% 64% 61%
73% 75% 77%
0%
100%
To
tal
1 -
99
10
0-4
99
50
0-9
99
10
00-4
999
50
00+
Bankin
g
Pro
ce
ss m
anu
factu
ring
Securi
ties a
nd investm
ent
serv
ices
Life S
cie
nces
Oil
& G
as
Co
mm
unic
atio
n &
Me
dia
Whole
sale
Dis
cre
te m
anufa
ctu
ring
Insu
rance
Re
so
urc
e Ind
ustr
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Tra
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rtation
Pro
fessio
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erv
ice
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Govern
ment
Utilit
ies
He
althcare
Re
tail
Co
nstr
uction
Co
nsum
er
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ecre
ationa
lS
erv
ices Education
No
Yes
33%
46% 46% 44% 42% 40% 37% 34%
48%
36%45%
45% 47% 49% 53%
44%
1000-4
999
5000+
Banki
ng
Pro
cess m
anufa
ctu
ring
Securities a
nd
investm
ent …
Lif
e S
cie
nces
Oil
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as
Co
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unic
atio
n &
Med
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The Leading Edge
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Prediction: Big Data Will Be the CIO Issue of 2012
20
Big Data Software Landscape
Source: IDC, 2012
Text
mining
Advanced
Analytics Pig Hive
Flume Hadoop Data Ware-
housing
Search &
Discovery
Audio,
Video
Analysis
CDC CEP zookeeper HBase
We predict Big Data and Analytics will be the CIO issue of the year in 2012.
The final bricks in the foundation for the intelligent enterprise will be laid in 2012 in a number of key industries (e.g. healthcare and utilities).
Socialytics will become essential to omni-channel retailers, integrating enterprise systems and data to create more actionable business insights.
CIOs will spend years with pilot analytics projects – many will be failures – until they find the right tools and data models.
Prediction
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Socialytics:
Social Business Enabled by Analytics on Broader, Richer Data
21
Social
Data
Corporate
Data Intersection of highest
value information
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Why Social Business? It’s All Information-Driven
22
Q. Why are you conducting social initiatives for business purposes today?
N = 700
0% 10% 20% 30% 40% 50% 60% 70%
It is a requirement for my job
Competitors are doing it
Conduct employee training
Communicate with partners/suppliers
Respond to customer/partner inquiries
Monitor conversations/activities
Gather feedback on company product or service
Socialize with friends/industry colleagues
Make decisions
Communicate with internal colleagues
Create awareness about company product or service
Communicate with customers
Share knowledge/contribute ideas
Acquire knowledge/ask questions
40% of respondents report saving 15%+ of time
Jul-12 © IDC
Prediction: CIOs Will Step in to Bring Social Initiatives Together Under One Social Enterprise
23
Early social business initiatives were led by the CMO to reach customers and prospects.
As social business expands, other key areas such as product development (ideasourcing / innovation management) and customer service (community & social listening) will have their own social initiatives.
Social businesses will create extended information architectures. CIOs will step in to integrate these as part of the social enterprise and IT will oversee more functional areas (e.g. contact centers) and a broader array of technologies (collaboration, CRM, digital commerce).
Prediction
Jul-12 © IDC
Cloud Mobility
Big Data/
Analytics
Social
Business
What’s the impact of Cloud, Mobile, Analytics &
Social on existing markets?
24
Four Forces of Industry Transformation
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Mobile Everything
Devices
Platforms
Applications
Distribution Channels
Networks
Services
Cloud
There’s a Lot Coming at You… It’s a Mess!
The
Individual
25
Jul-12 © IDC
Consumer Devices Are Already in the Enterprise … And Growing
2010
31%
26
Employee-Owned Devices (vs. Company-Owned Devices)
Used to Access Business Applications
» 2011
41%
Jul-12 © IDC
A Framework for Thinking Through Your PC vs. Tablet Policy
Creator of Content (lean forward)
Consumer of Content
(lean back)
Stat
ion
ary
Road Warrior
Assess workforce by the
level of mobility and the
time spent doing the
following activities:
Giving presentations
Order capture
Status updates
2-way communication
Content generation
The more mobile
employees who
consume content
and/or doing “light”
content generation
activities, are more
suitable for a tablet only
The less-mobile
employees who
consume content
and/or doing “light”
content generation
activities, are more
suitable for a tablet only
Campus Roamer
Inside Talkers Inside Creators Engineering Marketing Finance Admin/Legal/HR ____________________ Product design Graphic design Financial report generation
Logistics Manufacturing Sales Associate ____________________ Status Updates Data Collection Order entry
Customer Service (call ctr.) Human Resources IT Help desk Cust. Reception ____________________ Accessing product/customer info Accessing employee info
Executives Account Executives ____________________ Presentations Email
Mo
bile
27
Tablet Tablet or Smartphone
PC PC
Jul-12 © IDC
Alternatives for Mobile Device Strategies Develop a Framework for Decision Making
28
Cap
ab
ilit
ies P
rovid
ed
Corporate DB
Analytics
Specialized
Applications
Multimedia
E-Readers
Virtual Desktop
Production
Support
Web Services
Mobile
Applications
Corporate Mail
Business
liable
Corporate
Phone
Business
liable
PC, Tablet or
Smartphone
BYOD
• Non-Std. Device
• Ltd. Controls
• Limited access to
Corp. Apps &
Network
Employee-
Liable (corp
std.)
Tablet or
Smartphone
Devices In Service
Jul-12 © IDC
Prediction: CIOs Will Solve the Mobile Device Policy Issue in 2012
29
Considering your company's entire global
workforce, indicate below what percent of
employees fall into each policy/category?
IDC Mobile Benchmark Study, Fall, 2011
CIOs will have made significant progress in addressing the multitude of decisions around employee-owned devices. We predict that most large enterprises will crack this issue in 2012.
Greater data access, app stores, and mobile analytics will require greater security will 2012.
Multiplatform mobile device management solutions to address management, security and apps will be broadly adopted to meet these new demands.
Prediction
Jul-12 © IDC
How CIOs Are Aligning with the Business
30
0% 10% 20% 30% 40% 50%
Strongly Disagree
Disagree
Neither Agree or Disagree
Agree
Strongly Agree
n = 81
Source: IDC CIO Agenda Survey. November-December, 2011
“As CIO I should spend at least 2/3rd of my time working with the business”
Jul-12 © IDC
Prediction: Aligning IT to the Business Will Continue to be the Top Personal Goal for CIOs in 2012
31
In 2012, which of the following 3 goals will be top of your personal agenda as CIO?
n = 87
Source: IDC CIO Agenda Survey. November-December, 2011;
Data shows % of respondents who listed as a top 3 initiative
Alignment still tops the personal agenda of the majority of CIOs. In order to build an intelligent enterprise, CIOs recognize the need for more business engagement and the adoption of integrated business services via the cloud.
Business executives will continue to become more tech savvy and partner with IT to build the extended enterprise.
Prediction
0% 10% 20% 30% 40% 50% 60% 70%
More effectively attract new IT talent
Re-skill existing IT talent
Implement more rigorous process to evaluatenew ideas for IT to take on
Focus IT org on better understanding therequirements of the consumers
Foster a culture where IT more often providesa qualified "yes" to the business
Carve out more IT budget for innovativeprojects v. "sustaining IT operations"
Foster a culture within IT that drives moreinnovation
Better align IT with the business
Focus the IT org more on business strategythan technology strategy
Jul-12 © IDC
Prediction: The Era of IT Innovation Begins in 2012
32
0% 20% 40% 60%
Strongly Disagree
Disagree
Neither Agree orDisagree
Agree
Strongly Agree
n = 85
Source: IDC CIO Agenda Survey. November-December, 2011
67% of CIOs tell IDC “I see the role of CIO evolving to be Chief Innovation Officer”
We predict 2012 will be the year that the majority of CIOs start to employ the four pillars(cloud, mobile, social, and big data/analytics) to realize business innovation.
2012 will be a turning point as the impact of cloud services and the consumerization of IT reach a critical mass. CIOs have the experience to lead this transformation and they are ready to step up.
Prediction
Jul-12 © IDC
Prediction: The Extended Enterprise will Define the Next Gen CIO
33
-20% 0% 20% 40% 60%
Strongly Disagree
Disagree
Neither Agree or Disagree
Agree
Strongly Agree
With the increased adoption of cloud services in an organization, I see the role of CIO transforming to become
Chief Information Architect, where one of the primarily responsibilities of the CIO is to ensure information flows
between internal systems and cloud services?
n = 86
Source: IDC CIO Agenda Survey. November-December, 2011
Next Gen CIOs will focus on business services, analytics and controls. They’ll own the adoption of new business services while ensuring security and a seamless information architecture.
– Chief Information Architect
– Services Sourcing and Management
– Business Process and Change Management
– Compliance and Risk Management
CIOs will not become obsolete.
However, the Next Gen CIO may be a
non-IT business executive who excels
at innovation, communication and
change
Prediction
Jul-12 © IDC
Advice to CIOs for 2012
34
Plan to extend your information architecture to integrate information from the fringe of the enterprise: social business; SaaS; and the interactive network of things.
Develop an organization plan that contemplates changes in roles, disciplines and hiring to support a service architecture
– Cloud architecture
– Sourcing and managing cloud services
– Services management
Educate business executives on how
they can create
– Business process management
– Innovation at the fringe of the enterprise
– Lean and agile businesses