manifesting legacy: looking beyond the digital era · 2020-05-18 · cios should be actively...

Manifesting Legacy: Looking Beyond the Digital Era

2018 Global Survey Report Readout

Life Sciences and Healthcare Industry

2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 2

2

About the 2018 global CIO survey participants


Source: Deloitte's 2018 Global CIO Survey

Life Sciences and Healthcare industry includes Life Sciences, Health Care Providers and Health Plans sectors.. The CIO N = 95 and CXO N = 15 varies slightly between questions


The changing role of the CIOCIOs desire to move beyond the traditional trusted operator role and focusing on the clear mandates of transforming the business and driving growth

55% of CIOs surveyed

continue to function as trusted operators that focus on IT efficiency, reliability, and cost containment.

70% of survey respondents agree the

CIO will have one of the most important roles in driving digital in the next 3 years.

Change instigators take the lead on technology-enabled business transformation and

change initiatives.

Business co-creators spend most of their time on business strategy and enabling change

within their businesses to ensure effective execution of the

strategy.

Trusted operators deliver operational discipline within their

organizations by focusing on cost, operational efficiency, and

performance reliability.


CIOs need to fundamentally shift how they deliver value while ensuring operational excellence to meet organization’s expectations of getting more out of technology

The diminishing role of the Trusted Operator

XX

The Life Sciences and Healthcare industry leads the pack in its number of CIOs that are currently already Business co-creators


Dimensions of change for the CIOs

CIOs should consider their role against three key areas as they shape the digital future of the enterprise

REDEFINE their role

• Harness digital• Launch tech fluency

REIMAGINE their IT organizations

• Follow the money• Transfuse talent and

culture

REBALANCE their technology

capabilities

• Strengthen the core• Industrialize

innovation


Digital vanguards are a guide for future leadershipOnly 10% of the IT organizations we surveyed are perceived as market leaders and have a clear digital vision and strategy

10.5% of the Life Sciences and Healthcare industry organizations are digital vanguards, which is 2.6% higher than the average across all industry


Performance, customers and innovation remain the top global business prioritiesInnovation and Growth are the top two priorities for Life Sciences and Healthcare organizations

Question: What are your CEO/executive leadership’s top business priorities? (Please rank your top 3)

Digital Vanguard CIOs

list innovation as

their top business priority, followed by customers, and growth.

CXOs listed

customers as their

top business priority 55% compared to 48% for CIOs.


CIOs should be actively involved in shaping and leading digital efforts in their organization to be the driver of transformation and growth

Stepping up to harness digital

40% of CIOs surveyed indicate that they lead digital strategy.

For the 60% that don’t,more than a quarter (27%) are responsible for execution of digital activities.

Question: What are your primary focus areas of digital within your organization (Please rank your top 5)

CXOs listed customer

growth and sales

effectiveness/CRM ~10 points more than

CIOs.


Launching tech fluencyBuilding technology fluency within their organizations can enable CIOs to establish relationships and better engage with an increasing breadth of stakeholders

BUSINESS STAKEHOLDERS BOARDS CUSTOMERS

Tech fluency efforts should balance the needs of front-

office and back-office functions

High performing companies are more likely to have a technology fluent board

Tech fluency efforts that focus on customer impact are likely to stay away from the “shiny” object syndrome


CIOs can develop initiatives that drive up organizational tech fluency through broad-based programs, followed by individual curricula for specific audiences based on their needs and interests

Tactics for enhancing tech fluency

96% of CIOs consider it to be their role to make the business more tech fluent.

66% of CIOs have developed proactive educational initiativesthat reach beyond the executive level to help build tech fluency across the organization.


CIOs can develop initiatives that drive up organizational tech fluency through broad-based programs, followed by individual curricula for specific audiences based on their needs and interests

Tactics for enhancing tech fluency

CIOs are1.5X as likely to

report having a strong relationship with other business functions when they customize their tech fluency efforts.

The Life Sciences and Healthcare industry listed a strong relationship with security and risk

functions only 57% of

the time which is 15%less than the industry

average of 72%.


Face time with the board mattersThe CIO’s tech fluency strategy can extend across the organization to the board through consistent interactions and technology focused conversations

As the frequency of board interactions increases from annual to monthly, the likelihood of having a digital and innovation focused discussion increases from

39% to 75%


Telling the IT value creation story CIOs can focus on funding, procurement, and IT finance to better tell the story of value creation and drive IT operating model change

BudgetShift from fixed budget allocation to program

based, iterative funding cycles with joint accountability

Investment governanceTransform how technology investments are

prioritized and measured through tech governance

ProcurementFocus on procurement as a strategic asset to

fill competency gaps

IT Finance Introduce a capability to measure and

communicate the value of IT investments


Agree on what matters mostWhen IT and the business are aligned on investments and prioritization, they are more likely to have a significant impact on business outcomes. Unfortunately, the CIO survey indicates that IT/business alignment is uncommon

52% of baseline organizations have a technology investment decision making process jointly owned by IT and the

business. 60% of vanguards share this

process.

Only 35% of baseline organizations have a clear process for prioritizing IT investments.


Show me the valueBoard members and senior executives expect a positive return on all investments, including technology, but many IT organizations come up short

14% of all organizations

say they don’t measure the impact of IT investments at all.

Only 1/5th of CIOs and

CXOs agree that their organization has a structured process for measuring the value of technology investments.


Budgets held hostageProject-based funding models often lead to chronic underinvestment in technology innovation

How is your overall IT budget allocated?


Augmenting technology expertise with the soft skills

Life Sciences and Healthcare industry hones in on soft skills

54% of CIOs selected hiring for rising soft skills as important over traditional technical skills.


Focusing on initiatives that promote culture, diverse experiences and inclusiveness are key in winning the talent war

Building culture: It’s not a cliché, it can be a competitive advantage

Diverse thinking matters, > 58% of US CIOs said they have a formal initiative in place to promote diversity & inclusion.


Life Sciences and Healthcare industry can focus on emerging technologies while maintaining and strengthening core building blocks

Strengthening the core

Question: Which of the following technology areas will have the most impact on your business in the next 3 years? (Please rank your top 3)

The Life Sciences and Healthcare industry believes

that emerging technologies and cyber will be more impactful to their

organizations in the next three years.

They believe that

legacy/core modernization will be

less impactful to their

organizations in the next three years.


How strategic is cyber?Baseline organizations continue to view cyber as a cost


Business acceptance of all things cloud is likely a significant driver of digital transformation, and it’s growing.

Embracing cloud while managing cloud sprawl

% of IT spending on cloud-based services will be doubled across all industries

Question: What percentage of your overall IT spending is dedicated to cloud-based services?

Question: What are the primary reasons for using cloud technology? (Please select all that apply)


Question: Which of the following emerging technologies do you anticipate investing in significantly in the next 3 years? (Please select up to 3)

AI and Digital lead the pack in emerging technology investments

Emerging technology investments drive future growth

Compared to other industries, the Life Sciences and Healthcare industry plans to

invest significantly more in AI/machine learning over the next 3

years.

They plan to invest

significantly less in legacy/core modernization over the

next 3 years.


CIOs should consider a formalized innovation capability to deliberately harnesses disruptive technologies

Industrializing innovation

17% to 40%of CIOs are saying that emerging technologies will have the most impact on their organization. This number more than doubled from 2016 to 2018.


There is a significant difference in perspective between CXOs and CIOs on why IT initiatives are unsuccessful

Challenges with IT initiatives

When IT initiatives fail in your organization, what contributes most to failure?

252018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved.

This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation.

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manifesting legacy: looking beyond the digital era · 2020-05-18 · cios should be actively...

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