interactive breakout session … · © 2017 sim international & leon kappelman, primary...

© 2017 SIM International & Leon Kappelman, Primary Investigator

2017Study

PresentersLeon Kappelman Eph McLeanRussell Torres Chris MaurerMark Snyder Vess Johnson

Interactive Breakout SessionSIM Connect Live 13‐Apr‐2018

PLATINUM SPONSORS

GOLD SPONSOR

This research made possible through the generous support of:

1st ever SIM IT Trends Study European Report now available at no cost to SIM members too.

IT TRENDS RESEARCH TEAMLeon Kappelman, University of North TexasEphraim McLean, Georgia State University

Vess Johnson, University of Arkansas ‐ Little RockRussell Torres, University of North Texas

Mark Snyder, MBSC & SFT FundsChris Maurer, University of Virginia

Quynh Nguyen, University of North TexasAlsius David, University of North TexasKevin Kim, University of North Texas

Comprehensive Report ($995)Free to all SIM Members

http://www.simnet.org/IT-Trends


• Collaboration of academics and practitioners since inception in 1980• Focus is IT management in organizations• Research Population: SIM members + global non-member version• Some of the Deliverables:

• Confidential Personal Benchmarks Report to every participant• Comprehensive Report to every SIM member• SIM Connect Live presentations• Monthly articles in SIM’s two e-newsletters

• SIM’s specific objectives:• Important to SIM’s value proposition w/members.• Create unique intellectual capital.• Publicity and branding: “SIM, the voice of IT leadership”• Attract new members.

•Academics’ objective: get great data and do valuable research.

SIM’s IT Trends Study: The Research Project


• Did you and everyone else in your chapter get your personal invitations?

• Which chapters will win bragging rights and $ in the Chapter Challenge Contest?

• Can we beat last year’s participation rate of 28.6% of all SIM members completing the questionnaire?


The 37th Anniversary SIM IT Trends Study• 1,178 SIM members completed questionnaire

• 28.64% of SIM members• 469 “CIO or highest-ranking IT executive”• 769 “unique organizations”

• Represented by their “senior-most IT leader”• Average revenue $4.65 billion (median $400 million)• Total revenue of 769 $3.58 trillion: 19.3% of US GDP• Total of $217 billion IT spending• IT spending averages 6.08% of revenue


Trends:40 years


0.75%

8.55%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

1980 2010

IT % of National Economy1980 2010

Internet $1,260

Mobile Phone $720

Cable TV $900

Landline Telephone $97 $240

Market Data / News $35 $600

Tablet $240

Total $132 $3,960

Personal technology expense grew by 2900%IT spending grew by 1040%

IT Spending & Personal Economy

Provided by Howard Rubin


0

1

2

3

4

5

6

7

8

9

10

11

1980 1983 1987 1991 1996 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Business‐IT Alignment

IT Strategic Planning


Trends:7 to 15 years

© 2017 SIM International & Leon Kappelman, Primary Investigator 3.5%3.8% 3.8% 3.9%

3.6%

4.9% 5.0% 5.1%5.3% 5.0%

6.1%10 year average 4.55%

0%

1%

2%

3%

4%

5%

6%

7%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017…

IT Spending as % of Revenue

Up 15% in 24 MonthsUp 74% in in 10 years (2007‐17)


12345678910

2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Most Important IT Management Issues for IT Leaders

Attract, Develop, and Retain IT Professionals

Fell out of Top 10


7.1%

5.2% 5.5% 5.5% 5.2%

6.6%

9.0%8.6%

8.0%7.3%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Turnover Rate

10 Year Average 6.79%


3.6 4.1 4.3 4.6 5.14.5

6.05.2 5.4 5.5 5.6

6.7

012345678

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CIO Job Tenure (in years)


38.0%

15.4%

54.0% 61.2%

5.6%

4.0%

17.8%

0%

10%

20%

30%

40%

50%

60%

70%

2010 2011 2012 2013 2014 2015 2016 2017

IT, same organization IT, outside organizationNon‐IT, same organization Non‐IT, outside organization

IT, Same Org: ‐59.5%

2017: 23.8% of CIOs from non‐IT prior job, up 192% in seven years

IT, Outside Org: +13.3%

2017: 79% of CIOs from other organizations, up 36% in seven years


Trends:Past 4 years


• “Keeping the IT Lights On” share of IT budget over 25% (to 40.5% of total IT spending) in 24 months (2015-17).

• On average, 34.6% “of all IT services” were cloud-based in 2017, 27.2% from 2015.

• Cloud share of IT budget up 44.1% in same period.


• 61.3% of organizations reported an in IT staffing levels in 2017.

• 94.8% of organizations increased IT salaries in 2017.

• Average IT salary increased 4.2% last year.


49%

67%

40%

72%

59%

82%

29%

55%

19%

39%

2%8%

0%10%20%30%40%50%60%70%80%90%

2013 2014 2015 2016 2017

% of CIO’s Interacting with C‐Suite at least Weekly

CEO COO CFO CMO CLO BOD

48 Month Increase


• Over the past 38 years:1. IT intensity of organizations & everything else increased.2. IT became more important to and more about the business.

• Over the past seven years:3. Frequency of CIO interactions with C-Suite peers has

increased greatly. Likely a sign of 2.4. Many more CIOs from non-IT backgrounds & other

organizations. IT bench not business-oriented enough?

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