2016 cio agenda

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The 2016 CIO AgendaBuilding The Digital

PlatformLee Weldon

Dave AronGraham Waller


2,944 CIOs

84 Countries

$11T Revenue

$250B IT Spend


Insurance

7%

Healthcare

5%

Manufacturing

21%Education

7%

Retail

6%Transportation

5%Communications

3%

Services

11%Government

13%Banking

10%

Energy/ Utilities

8%

Wholesale Trade

2%Media

2%


13 Case Studies


42%

60%

77%

Now In 2 years in 5 years

CIO survey (n=344)

16%

25%

37%

22%

31%

41%

Now In 2 years in 5 years

CIO survey (n=609)

Digitalization is Intensifying; The Stakes Are Rising

Private Sector Public SectorWhat % of your revenues are digital? What % of your processes are digital?


Digitalization Is Still Quite Operational; The Potential Is Much Greater

941 CIO respondents selecting top 3 digital impacts on their business, in order

More Revenues From Better Operations

More Business Through Digital Channels

Tighter Partnerships

Creating New Markets

Engaging and Empowering Employees

Changing the Basis of Competition

Cost Reduction

Expanding to New geographies

Crossing Industry Boundaries 2%

3%

6%

6%

7%

10%

10%

21%

34%

Number 1

9%

11%

39%

20%

40%

26%

37%

48%

66%

In Top 3


The Technology Opportunity: Monetize Big Data, Underpinned by the Cloud

No. No. Priority 2016 2015 2014

1 BI/Analytics 39% 41% 50%

2 Infrastructure and Data Center 27% 31% 37%

3 Cloud 25% 27% 32%

4 ERP 21% 26% 34%

5 Digitalization/Digital Marketing 21% 17% 11%

6 Mobile 20% 24% 36%

7 Security 15% 13% 11%

8 Networking, Voice and Data Communications 10% 12% 12%

9 Legacy Modernization 10% 7% 7%

10 Industry-Specific Applications 9% 9% 10%

11 CRM 9% 11% 8%

Note: Percentages represent the proportion of CIOs citing each priority as one of their top three areas of new IT spending.

%


The Threat Matrix Is Evolving

Choose the Scenario You Feel Is the Greater Threat to Your Business

Security and

Cyber-Risk Threats

Digitally Driven

Competition From

Traditional Industry

Competitors

New Competitive and

Commercial Threats

Digital-Enabled

Companies Entering Your

Industry From Other

Industries

41%

53% 47%

n = 961

n = 928

59%


+3.5%

Latin

America

+1.5%

EMEA+4.1%

APAC

+2.3%

North

America

Global Weighted Average: 2.2%

The Purse Strings Are Loosening, but Only a Little

Represents growth in spending inside IT organization, in nominal terms


The World Is Moving Toward Platforms

Business as a Platform

MomentsProducts

Services

Markets

Business as a System

Products & Services


Digital Visionaries Are Building Platforms Throughout Their Businesses

#GartnerSYM


Ecosystem

Enterprise

IT


Create a Bimodal Delivery Platform

Exploit and

Explore


Build the Dual Capability to Exploit and Explore

Refactor to Industrialize

Unlock for Innovation


Bimodal Is Becoming Increasingly Real

Of those who have Bimodal IT, the average proportion of investments in Mode 2 is 25%

Adoption of Bimodal Tools by Those On The Journey (n = 360)

38%of CIOs are on the Bimodal IT

journey

76%

72%

53%

36%

28%

27%

25%

25%

23%

8%

Agile methodologies

Multidisciplinary teams

Adaptive sourcing

Different funding

Mode 2 outside IT

Different metrics

Work with startups/SMBs

Bimodal subcultures

Formal innovation management

Crowdsourcing


The Most Impactful Bimodal Tactics Are Not the Most Used

AverageDigital

Performance

5.00

4.75

4.50

4.250% 10% 20% 30% 40% 50% 60% 70% 80%

Crowdsourcing

Different Metrics

Work With Startups/SMBs

Formal Innovation Mgmt.

Bimodal Subcultures

Mode 2 Outside IT

Different Funding

Adaptive Sourcing

Agile Methodologies

MultidisciplinaryTeams

% of CIOs Using

7.00

n = 360


Examples of actions CIOs need to take when creating their Delivery Platform Action Plan

HOW CAN YOU HELP

THEM?

ASAP

Build a bimodal business and IT structure

Adopt adaptive sourcing strategies

Experiment with crowdsourcing in Mode 2

Try working with startups/smaller partners


Evolve the Talent Platform

Ignite Talent

from Inside and Out


Talent Issues Are the Biggest Barrier to CIO SuccessWhat is your biggest barrier to achieving your objectives as a CIO?

n = 555

22%

15%

12%11%

9%8%

Skills Money Culture Alignment Technology Change Relationships

8%


O

1. Information/Analytics 40%

2. Business Knowledge/Acumen 18%

3. Security & Risk 17%

4. Digital 15%

5. Project Management 13%

6. Software Development 13%

7. Architecture 12%

8. Leadership 9%

9. Attract/Retain 8%

10.Technical Skills 8%

The Biggest Talent Gaps Are Information and Business Knowledge

2016 CIO Survey n = 937


Examples of actions CIOs need to take when creating their Talent Platform Action Plan

HOW CAN YOU HELP

THEM?

ASAP

Make more hires from the rest of the business and developmental rotations

Build closer relationships with universities (internships, developing existing talent)

Consider "Techquisitions" to capture talent

Assess current and potential partners as digital inhibitors versus accelerators


Build Your Leadership Platform

Digital Leadership as a Team

Sport


19%

45%

33%

3%

24%

51%

24%

1%

Trusted Ally Partnering Transactional At-Risk

2014 2016

CIO Power and Influence Up from 2014, And Increasing

n=1356 n=482

Nature of currentCIO-CEO Relationship

Expected changes in CIO powerand influence in next year

2014 2016

Decreasing significantly 0% 0%

Decreasing somewhat 1% 0%

Decreasing slightly 3% 2%

Remain about the same 20% 16%

Increasing slightly 31% 29%

Increasing somewhat 31% 34%

Increasing significantly 14% 18%


Many CIOs Are Leading Digital Transformationand Innovation

30%

2%

2%

7%

9%

13%

18%

19%

22%

34%

39%

None

CFO

HR

COO

Risk (CRO)

Business Strategy

E-Commerce

Shared Services

Enterprise Change

Innovation

Digital Transformation (CDO)

CIO Leadership Roles

2016, n = 952


Examples of actions CIOs need to take when creating their Talent Platform Action Plan

HOW CAN YOU HELP

THEM?

ASAP

Extend your leadership focus beyond the boundaries of the business to the ecosystem

Build a plan to develop the digital savvy of the business leadership and IT teams

Consider getting mentoring from a digital-centric company and/or reverse mentoring

Find a way to make time and space to actualize the plan and play a digital leadership role


Recommended Gartner Research

Building the Digital Platform: The 2016 CIO Agenda

Dave Aron, Graham P. Waller and Lee Weldon (G00292133)

Toolkit for IT Executives: Job Description for the COO of IT

Mark Coleman, Dave Aron and Tomas Nielsen (G00277753)

What to Do If Your Digital Business Strategy Violates Culture, Ethics or the Law

Tomas Nielsen, Frank Buytendijk and Others (G00276440)

Hit the Bimodal IT Highway Now — Considerations for Structuring and Staffing

Diane Berry, Lily Mok and Mark Coleman (G00276019)

Digital Workplace Key Initiative Overview

Mike Gotta and Matthew W. Cain (G00277654)

A Bimodal Enterprise Needs Three Subcultures

Dave Aron (G00273134)

Get Ready for Digital Business With the Digital Business Development Path

Jorge Lopez, Patrick Meehan and Others (G00263766)