07the cio agenda predictions 201-idc-por alejandra mendoza

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The CIO Agenda Predictions 2012 Alejandra Mendoza IDC Mxico

5-12 IDC Visit us at IDC.com and follow us on Twi5er: @IDC

Agenda

IT Investment Outlook Current and Beyond

On the Road to Building an Intelligent Economy: Top CIO Predictions for 2012

Questions and Answers

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Central America companies strategic priorities

Which of the following statements describe the best your main strategic driver for the following year?

Fuente: IDC Central America IT Spending Trends, 2009, 2011

9%

12%

33%

55%

35%

40%

24%

37%

19%

28%

32%

63%

22%

18%

34%

18%

1%

8%

8%

4%

CA-2009 (Enero)

CA-2011 (Marzo)

MX-2011

Per-2011

COL-2011

We are managing our growth

We are trying to reduce costs

We are op?mizing the eec?vity / predic?bility of our business processes

We want to signicantly reduce our response ?me to changing market condi?ons


Changes in 2012 IT Budgets Compared to 2011

0% 5%

10% 15% 20% 25% 30% 35% 40% 45%

Increase Decrease The Same

Source: IDC CIO Agenda Survey. November-December, 2011 n= 82

In 2011, IT budgets showed resilience in light of low GDP forecasts. A significant portion of IT executives report budget decreases for 2012.

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Drivers of IT Budget Decreases

0% 5% 10% 15% 20% 25% 30% 35% 40%

Recent investments in IT are still being absorbed

Reduced IT requirements due to lack of organization growth/new projects

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 activities outside of IT

Efforts to reduce IT-related redundancies within organization

Poor financial outlook for my organization

Negative outlook for industry and/or economy

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?

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Source: IDC CIO Agenda Survey. November-December, 2011 Data shows % of respondents who listed as a top 3 initiative. n=45


Drivers of IT Budget Increases

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Positive outlook for organizations financial performance

Positive outlook for industry and/or economy

Merger/acquisition activity driving new spending

Expanding installed base

To keep pace with new or changing industry standards

Responding to regulatory requirements

Organizational growth

Updating/Replacing outdated technology

New projects

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? ?

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Source: IDC CIO Agenda Survey. November-December, 2011 Data shows % of respondents who listed as a top 3 initiative. n= 59


Moving from IT Productivity to an Intelligent Economy

2000-2009

IT Productivity

Virtualization and Data Center Consolidation

Low Cost Outsourcing Consolidated ERP Long Desktop Refresh

2010-2019

IT intensity (IT as a % of revenue) = 2.2% in 2011

Cloud

Social Business

Big Data/ Analytics

Mobility

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Moving from IT Productivity to an Intelligent Economy in Central America

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Cloud Computing

46% of companies have already started

a virtualization process

20% of companies are considering or

using cloud services

IT Consumerization Smartphones units growing

at 25%, while tablets are growing more than 100%

Big Data

Between 15% and 20% of companies have as priority to invest in real time

business performance

monitoring, in the integrated use of the information and in the

management of increasing quantity of

information

Operations efficiency and cost

reductions

Creation and Access to

information

Efficient usage of information

Processes Automation

Over 30% of companies still have as investment priority

to improve back-end operations and logistics and

distribution processes


How do we get to an intelligent economy?

What role does innovation play?

What role do cloud, mobility, social and big data/analytics play?

To what extent are these technologies and trends disruptive to roles in IT?

How does the role of the IT organization change?

How does the CIOs role change?

Cloud

Social Business

Big Data/ Analytics

Mobility

Moving from IT Productivity to an Intelligent Economy

9


Agenda

IT Investment Outlook for 2012 and Beyond

On the Road to Building an Intelligent Economy: Top CIO Predictions for 2012

Questions and Answers

10


Prediction #1 The Era of IT Innovation Begins in 2012

Prediction

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.

Background

67% of CIOs surveyed tell IDC they see the role as evolving to Chief Innovation Officer

CIOs expect their innovation budget will grow from 23% to 28% in the next 3 years.

The #3 goal for CIOs in 2012 is to foster a culture within IT that drives more innovation

98% of CIOs surveyed tell IDC IT should not be a barrier to innovation

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0% 10% 20% 30% 40% 50% 60% 70%

Strongly Disagree

Disagree

Neither Agree or Disagree

Agree

Strongly Agree

67% of CIOs tell IDC I see the role of CIO evolving to be Chief Innovation Officer



Prediction #2 Aligning IT to the Business Will Continue to be the Top Personal Goal for CIOs in 2012

Prediction

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.

Background

64% of CIOs surveyed tell IDC one of their top personal goals will be to focus the IT organization more on business strategy than technology strategy

80% of CIOs says they should be spending 2/3rd of their time with the business

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In 2012, which of the following 3 goals will be top of your personal agenda as CIO?


0% 10% 20% 30% 40% 50% 60% 70%

More effectively attract new IT talent

Re-skill existing IT talent

Implement more rigorous process to evaluate new ideas for IT to take on

Focus IT org on better understanding the requirements of the consumers

Foster a culture where IT more often provides a qualified "yes" to the business

Carve out more IT budget for innovative projects v. "sustaining IT operations"

Foster a culture within IT that drives more innovation

Better align IT with the business

Focus the IT org more on business strategy than technology strategy


Prediction #3 Business and Consultative Skills Will be Essential for New Hires in 2012

Prediction

By 2020, IT will have transitioned from architectures defined by technologies toward service architectures defined by services, process and information management.

To effect this change in 2012, they will recruit more talent with consultative business skills into the IT organization.

Background

CIOs see ITs role as IT and Process (IT&P). 43% of the new IT hires will primarily have

business skills (over technical skills) and act as Agents of Innovation.

These IT/business partners will engage the business to deliver high value, targeted solutions instead of enterprise-wide solutions.

Ideal candidates possess business skills along with a keen understanding of next gen capabilities (cloud, social, mobile, and big data/analytics).

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What percent of the new hires in 2012 will primarily have business skills and what percent will primarily

have technical skills?

43%

58%

Business Skills Technical Skills

47% of IT executives plan to increase the number of FTEs in 2012 Source: IDC CIO Agenda Survey. November-December, 2011 n= 63


Prediction #4 Under Pressure of Tight IT Budgets, CIOs Will Focus on Addressing Complexity

Prediction CIOs will pursue solutions that simplify

their apps and infrastructure portfolios. Cost savings from virtualization, cloud

services and offshore will be consumed by mobile and social solutions.

Background Extended enterprises bring complexity: Mobile devices and development Cloud sourcing, architecture and

integration Innovation at the fringe of the enterprise

demands new IT support Meanwhile: The pace of change has accelerated Legacy support persists Next Gen IT talent is becoming scarce Compliance demands increase IT budgets in many industries show

small growth

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Video Conferencing/Telepresence Open Source Technologies

Content Management VOIP/Unified Communications

Converged IT Enterprise Architecture

Database consolidation Range of desktop & mobile devices

Social Media Smart technologies

ERP consolidation Enterprise management SW

Business Process Management Enhance Security/Risk

Management

App portfolio consolidation Business analytics and modeling

Collaboration Tools Invest in cloud services

Consolidation/Virtualization

Which of the following will be a top 3 IT initiative in your organization in 2012?


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Prediction #5 CIOs Will Step in to Bring Social Initiatives Together Under One Social Enterprise

Prediction 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).

Background Social business solutions are becoming more

integral to customers insights, creating bi-directional channels that build / manage communities, social listening and integrated views of customers and markets.

More analytics are needed to assess programs and gain market insight.

Social business is also becoming embedded into ITs software product portfolio.

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Prediction #6 CIOs Will Solve the Mobile Device Policy Issue in 2012

Prediction

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 in 2012.

Multiplatform mobile device management solutions to address management, security and apps will be broadly adopted to meet these new demands.

Background

CIOs generally support BYOD policies. Organizations limit risk exposure to BYOD

devices by limiting access to data and applications, and by adopting policies that allow IT to remotely wipe lost or stolen devices.

But user demand for greater access will require continued investment in mobile device management investments is needed.

Considering your company's entire global workforce, indicate below what percent of employees fall into

each policy/category?

IDC Mobile Benchmark Study, Fall, 2011

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Prediction #7 Big Data Will Be the CIO Issue of 2012

Prediction 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.

Background Worldwide digital content will grow 48% next

year with over 90% of all data being unstructured.

Business analytics jumps to position #4 from position #9 in our survey of 2012 top CIO IT initiatives.

Big Data Software Landscape

Source: IDC, 2012

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Prediction #8 Full ITIL Projects Will Become Rare by 2015

Prediction Service management frameworks will gain

importance as cloud services proliferate. ITIL V3 Service Strategy & Service Design

will become the primary activities for managing hybrid clouds and service architectures.

Service Catalog Management will replace Incident Management as an essential capability.

ITIL Light and business-centric ITSM f r a m e w o r k s w i l l r e p l a c e f u l l - I T I L implementations in most industries.

Service Strategy

Service Operation

Service Transition

Continual Service

Improvement

Service Design

Background ITIL V2 targeted cost and quality improvements

but required considerable time and investment. The emergence of cloud services calls into

question the value of multi-year projects to improve infrastructure and development activities.

Service Management frameworks will be essential in managing complex hybrid clouds, outsourced, and in-house services.

ITSM supports IT Supply Chain Management The real value is in agility and extending the

enterprise

ITIL V3 Framework

Source: IDC, 2012

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Prediction 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 ITs 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.

Legacy systems and development will persist for years. ITs role as information architect will take center stage in design and management of information

flow between cloud services and in-house systems. 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. Background Enterprise Architecture (EA) has delivered data models and integration from the technology stack to

business processes. Previous strategic investments in integration, master data management, and SOA will enable the

migration to an extended enterprise and information architecture. Legacy systems will constrain the migration to a services architecture.

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Prediction #9 Information Architects Will Become One of the Most Critical Roles in the IT Organization


Prediction Next Gen CIOs will focus on business services,

analytics and controls. Theyll 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 executives who excels at innovation, communication and change.

Background

IT is finally becoming more about the Information than the Technology.

57% of CIOs surveyed they see the role of CIO evolving into one of Chief Information Architect.

34% of CIOs list investment in cloud services in their top 3 IT initiatives for 2012.

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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?


Prediction #10 The Extended Enterprise will Define the Next Gen CIO


Advice to CIOs for 2012

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

Prepare for the 2012 Board presentation on cloud strategies

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07the cio agenda predictions 201-idc-por alejandra mendoza

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