from cost to value: 2010 global survey on the cio agenda june 15 th, 2010 it advisory kpmg...

From cost to value:2010 Global Survey on the CIO Agenda

June 15th, 2010

IT ADVISORY

KPMG INTERNATIONAL

© 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Agenda

Overview

Key findings

Challenges & conclusions


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Overview

In March 2010, KPMG conducted the CIO Global Survey among CIOs and IT decision makers across Americas, Asia Pacific and Europe.

The survey focused on the following: value delivery, sourcing, risk and compliance, cost optimization, project portfolio management and CIO personal priority setting.

The survey was conducted with an objective to provide relevant information to CIOs to set their future priorities.


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Overview

450 CIOs were surveyed, 294 completed the survey in full


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Key findings

IT value dominates the CIO agenda

People are the success factor behind IT value

The profile of a CIO determines the agenda for the future

Cost optimization remains important

Risk and compliance rank high on the agenda in the financial sector

CIOs seek to increase value from their sourcing providers

CIOs in dynamic environments are first to apply new ways of working

CIO is optimistic about the future


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IT is no longer about cost cutting — it is about creating value

80% of the respondents place IT value highest on their agenda for the future

CIOs are putting IT value - the ability to better react to changing market conditions by using IT - highest on their agenda for the coming years


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CIOs realize that value is not created just by technology, but by people exploiting its full potential

89 percent mentioned the aspect ‘people’ as a major component of IT value. Other assets, especially hardware were mentioned much less often


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The profile of a CIO determines the agenda for the future CIOs in the financial sector are comparatively more involved with daily operations, while

those in the manufacturing sector are looking more at ways to innovate and transform with the help of IT.

Results show that a CIO focusing on operations also puts other related themes high on his or her agenda, including IT sourcing and cost optimization.

A CIO reporting to the CEO views IT more as a critical business enabler with a high strategic value than a CIO reporting to the CFO.


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Cost optimization remains important

56% of the respondents indicated that cost optimization should always be a part of an organization’s IT strategy, because it is a major competitive weapon.

The responses show that the focus is mainly on higher business process efficiency and less on purely IT topics such as IT staff and IT components.

Indicate use of their own audits to monitor their sourcing providers’ working methods.

Many CIOs are becoming more critical of their sourcing providers. CIOs mentioned that they are paying much more attention to the price-quality ratios.

71%


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Risk and compliance are high on the agenda in the financial sector Within the financial sector, risk and compliance is clearly higher on the agenda than in

other sectors.

82% expect the costs of compliance to increase in the next few years, with the majority expecting an increase of between 10 and 20 percent.

Important issues are security, 85% and identity management, 48%.


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CIOs want to get more value from their sourcing providers

CIOs are becoming more critical of their sourcing providers, mentioning that they intend to pay much more attention to the price-quality ratio

71%Respondents who use their own audits to monitor their sourcing

providers’ working methods.

The results indicate a maturity in terms of sourcing and a realization that sourcingshould show satisfying results


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CIOs in dynamic environments are first to apply new ways of working

CIOs expect the use of collaboration tooling to increase significantly over the next five years.

The barriers to widespread adoption appear to be a lack of clear understanding and confusion around regulation. This is especially true for financial organizations.

72%Respondents who view cloud computing as a good way to outsource IT functionality

CIOs in a dynamic internal environment are more inclined to try new concepts and technologies such as collaboration management, e-Inclusion & the appointment of a dedicated portfolio manager.


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CIOs are being optimistic and expect IT to be increasingly successful in the future

CIOs expect project success rates and returns on investment to grow in the next few years


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Challenges & conclusions

Challenges

Conclusions

Continuing globalization, greater demands from stakeholders, stricter legislation, & rapid technological developments.

Placing the right people in the right places in an organization so as to minimize the distance between business operations and IT.

Maintaining a focus on increasing compliance regulations but at the same time creating value and driving innovation.

CIOs envision a shift in focus from cost cutting and compliance to value creation and innovation.

To create sustainable value & optimize costs organizations will need to get a grip on the way all information is produced, collected and used as IT contributes directly to realizing the business strategy.

Cost optimization should always be a part of an organization’s IT strategy.


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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Pradeep UdhasHead IT/BPO SectorKPMG+91 9892433337 www.kpmg.com/performance-technology

from cost to value: 2010 global survey on the cio agenda june 15 th, 2010 it advisory kpmg...

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