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TOP INSIGHTS FROM THE TOP IS/IT INSIDERS

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INSIGHTS

At IT World Canada, we strive to provide information to technology professionals that’s useful, contextual, and community-oriented. It’s that last element that inspired CIO Census Report.

Developed in partnership with CIOCAN – the CIO Association of Canada – and sponsored by BLACKIRON Data, the CIO Census aims to take the pulse of Canada’s technology decision-making community.

From January to March, 186 technology decision-makers, from a variety of company sizes and a number of verticals, filled out our survey.

BACKGROUND

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INSIGHTS

We have distilled the findings into ten key INSIGHTS and IMPLICATIONS, presenting the supporting data in chart form.

OVERVIEW

Along the way, we make OBSERVATIONS related to the insights, highlighting where overall results differ by sub-groups.

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KEY FINDINGS

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INSIGHTS

1 Canada's organizations are banking on IT.

IT is investing almost 20% on new initiatives / innovation.

Where IT is always at the table, budgets allocated to IT innovation are higher.Getting a seat is related to having more types of non-IT functions reporting in.Staffing issues are more acute at organizations spending less on innovation.Mobile and Analytics are most often on wish lists, though they differ by sector.Outsourcing is poised to grow from a small base.

Outsourcing and Innovation may be related.

Twice as much is Hosted as Outsourced.

Fewer than half have an estimate for the cost of downtime.

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3

4

5

6

7

8

9

10

KEY FINDINGS

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DETAILED FINDINGS

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Year-over-Year Growth

IMPLICATION

INSIGHT1

Canada's medium and large organizations are banking on IT.

Relative to other functions, IT faces higher expectations / greater responsibility for organizational value-creation.

Not all experienced growth, but overall, IT spending outpaces economic growth.

+3.6% in Overall IT Spending

Vs.

+2.1% in the Overall Economy

(GDP, StatCan)1641

43

SMALLER

FLAT

LARGER

% of IT budgets that are….

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Year-over-Year IT Budget

OBSERVATION

a Goods & Services sectors have been buoyant, while the Public sector's been soft, which may, in part, reflect the Shared Systems Initiative by the federal government.

25

4332

SMALLER

FLAT

LARGER

% that have experienced each, by sector….

PUBLIC

638

56GOODS

1140

49SERVICES

+1.2% in Overall IT Spending

+4.6% in Overall IT Spending

+5.1% in Overall IT Spending

Educational Institutions Manufacturing Insurance

Healthcare Retail/Wholesale Financial Services

Provincial Government Construction Computer/IT Services

Municipal Government Oil & Gas Business/Personal Services Federal Government Agriculture Legal Services S

EC

TO

RS

INC

LUD

E:

1

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29

33

38

IT Investment in New Initiatives / Innovation

IMPLICATION

INSIGHT2

On average, IT is investing almost 20% on new initiatives / innovation.

If your organization is not investing almost 20% on innovation, it's falling behind.

MODERATE Innovation10-19%allocated

HIGH Innovation

20+%allocated

LOWInnovation

0-9%allocated

18% is spent on

Innovation, as a percentage of the

Overall IT Budget, on average

Average % of IT budgets allocated….

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OBSERVATIONS

a

Services spend more of their budgets on innovation than the Public sector.

22%

17%

15%PUBLIC

Successfully pitching new initiatives seems to drive growth in overall IT budgets.

IT Investment in New Initiatives / Innovation

Average % of IT budgets allocated….

GOODS

SERVICES 20%

12%

12%

By Year-over-Year Change in IT Budget:By Sector:

2

SMALLER

FLAT

LARGER

b

18% is spent on

Innovation, as a percentage of the Overall IT Budget,

on average

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OBSERVATION

a Only about one-third of IT leaders are ‘always’ involved in executive decision-making meetings.

% answering…

How Often Participate in Exec Meetings

3

31843

36ALWAYS PARTICIPATE

DEPENDS ON SUBJECT

ONLY IT-RELATED MEETINGS

RARELY / NEVER

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OBSERVATION

b Leaders of Small and Large IT departments are more likely to always have a seat at the table.

3

32331

44ALWAYS

DEPENDS ON SUBJECTONLY IT

RARELY / NEVER 418

49

29

31245

39

% answering…

How Often Participate in Exec Meetings

By # of IT Staff:SMALL(1-10)

MEDIUM(11-50)

LARGE(50+)

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IMPLICATION

INSIGHT3

At organizations where IT is always at the executive decision-making table, budget allocated to IT innovation is higher.

Leaders must make the case for a full-time seat so the best initiatives can be presented.

15%

21%

IT Investment in New Initiatives / Innovation

Average % of IT budgets allocated….

By How Often Participate in Exec Meetings:18%

is spent on Innovation, as a

percentage of the Overall IT Budget,

on average

ALWAYS

SOMETIMES*

* Sometimes combines ‘Depends’, ‘Only IT’ and ‘Rarely / Never’ for the sake of sample size, n=78

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IMPLICATION

INSIGHT4

Getting a seat at the table is related to having more types of non-IT functions reporting in.

Taking on more functional responsibilities outside of IT seems to be a path to participation and influence.

Responsibilities outside IT% with non-IT staff reporting to them…

72% have people

reporting in from other functions, including Admin,

Customer Service, Physical Security

68%

80%

By How Often Participate in Exec Meetings:

ALWAYS

SOMETIMES*

* Sometimes combines ‘Depends’, ‘Only IT’ and ‘Rarely / Never’ for the sake of sample, n=78

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OBSERVATIONS

aThe relatively few who have Operations backgrounds are much more likely to get a seat at the table. Their intimate understanding of how all the pieces come together is likely an advantage.

4

2145

32ALWAYS

% answering…

DEPENDS

ONLY-IT

How Often Participate in Exec Decisions

815

77

By Professional Background:

TECHNOLOGY

(72% of

sample)

OPERATIONS

(9% of

sample)

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OBSERVATIONS

bIT leaders with Technology backgrounds are most common in Services, least common in Goods.

4

% answering…

Technology Backgrounds

846271PUBLIC

GOODS

SERVICES

By Sector:

72% have a

background in Technology vs.

Operations, Line of Business, or

Others.

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IMPLICATION

INSIGHT5

Staffing issues are more acute at organizations spending less on innovation.

Rather than creating staffing issues, new initiatives seem to mitigate them.

% mentioning…

Staffing a Day-to-Day Concern

926662HIGH (20+%)

By Budget Allocated to Innovation:73% say that Staffing is a day-to-day

concern MODERATE (10-19%)

LOW (0-9%)

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OBSERVATION5

Top day-to-day issues differ by sector.a

SERVICESGOODS

By Sector:

30

46

43

50

75

12

21

26

44

82

41

24

35

57

59Staffing

Data security

Flexibility

Privacy issues

Up-time reliability

% mentioning…

Day-to-Day Concerns

PUBLIC

2.2for Services

Vs.

1.8for Goods

Vs.

2.5for Public

average # of concerns…

For Services, Data Security is as big a deal as

Staffing. Privacy pops for Public.

Overall, Goods experience fewer

issues on average.

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INSIGHT6

Mobile and Analytics are most often on wish lists, though they differ by sector.

SERVICESGOODS

By Sector:

21

20

30

23

36

43

43

61

9

21

24

32

38

26

71

47

14

19

24

35

30

35

54

49

% putting in their Top 3…Top Priority Initiatives

PUBLIC

Mobile`s bigger for Public, Analytics for Goods

IMPLICATION

Though there are many ties that bind IT leaders together, there are important differences as well.

Mobile device mgmt

Analytics

Cloud computing

Org. design improvements

Social business / collaboration

Virtualization

Managed services

Storage

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Outsourcing

IMPLICATION

INSIGHT7

Outsourcing is poised to grow from a small base.

This is a topic that is likely to draw more public attention as pervasiveness grows.

46 42

120-5%6-24%25+%

NOW

7

63

30

NEXT year or so

11% of the IT function currently

outsourced, on average

Less Same More

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IMPLICATION

INSIGHT8

Outsourcing and Innovation may be related.

It seems Outsourcing could be considered an enabler of innovation.

By Amount Outsourced:

15%

20%MORE OUTSOURCING (5+%)

LESS OUTSOURCING(0-5%)

IT Investment in New Initiatives / Innovation

18% is spent on

Innovation, as a percentage of the

Overall IT Budget, on average

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IMPLICATION

INSIGHT9

Twice as much is Hosted as Outsourced.

IT Leaders have been moved more Services than Staff out of their facilities.

Outsourcing and Hosting

46 42

12

4225 32

% Outsourced % Hosted

11% of the IT

function is currently

outsourced, on average

26% of IT infrastructure is hosted, on average0-5%6-24%25+% 0-5%6-24%25+%

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OBSERVATION9

The Public sector has a lot hosted.

Hosting

38 3527

56

24 21

PUBLIC GOODS

41 3524

SERVICES

0-9%10-49%50+% 0-9%10-49%50+% 0-9%10-49%50+%

29% of IT

infrastructure is hosted, on average

20% of IT

infrastructure is hosted, on average

25% of IT

infrastructure is hosted, on average

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% answering…

Estimate of Downtime CostPer Hour

124246 $40

Per person per Hour is the average across sectors,

among those who know*

IMPLICATION

INSIGHT10

Fewer than half have an estimate for the cost of downtime.

If there is a need for a downtime number, $40/person per hour is a rough figure to work with.

Known

Unknown

Not Applicable

* Thinking about downtime by employee may not be the most appropriate approach for all organizations.

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SUMMARY OF INSIGHTS & IMPLICATIONS

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INSIGHTS

Canada's organizations are banking on IT.

IT is investing almost 20% on new initiatives / innovation.

Where IT is always at the table, budgets allocated to IT innovation are higher.

Getting a seat is related to having more types of non-IT functions reporting in.

Staffing issues are more acute at organizations spending less on

innovation.Mobile and Analytics are most often on wish lists, though they differ by sector.

Outsourcing is poised to grow from a small base.

Outsourcing and Innovation may be related.

Twice as much is Hosted as Outsourced.

Fewer than half have an estimate for the cost of downtime.

INSIGHTS IMPLICATIONS

1

2

3

4

5

6

7

8

9

10

Relative to other functions, IT faces higher expectations for value-creation.

If your organization is not investing almost 20% on innovation, it's falling behind.Leaders must make the case for a full-time seat so the best initiatives can be presented.Taking on more functional responsibilities outside of IT seems to be a path to influence. Rather than creating staffing issues, new initiatives seem to mitigate them.

Though there are many ties that bind IT leaders together, there are differences as well.This is a topic that is likely to draw more public attention as pervasiveness grows.

It seems Outsourcing could be considered an enabler of innovation.

IT Leaders have been moved more Services than Staff out of their facilities.

If there is a need for a number, $40/person per hour is a rough figure to work with.

THANK YOU