Jerry LuftmanJerry LuftmanExecutive Director & Distinguished Professor

SIM VP Chapter Relations & Academic Affairs, Emeritus

Top 10 2010 IT Management ConcernsTop 10 2010 IT Management Concerns

1 Business productivity and cost reduction2 Business agility and speed to market3 IT and business alignment4 IT reliability and efficiency5 Business Process Reengineering6 IT strategic planning7 Revenue generating IT innovations8 IT Cost reduction9 Security and privacy

10 Globalization

Priority of Time Allocated for IT Business Priority of Time Allocated for IT Business Alignment ConsiderationsAlignment Considerations

IT-business communications regarding

understanding strategy, risks, opportunities, etc

35% (25%)

IT-business partnership (e.g. trust, relationship,

shared perceptions)26%

(30%)

Measurements demonstrating IT

contribution to business16%

(12%)

IT Governance & prioritization

10%(15%)

Skills (business, technical, interpersonal)

9%(7%)Architecture and

technology standards, integration, flexibility

4%(11%)

(2009)(2009)

Priority of Time Allocated for IT HR Priority of Time Allocated for IT HR ConsiderationsConsiderations

(2009)(2009)

11 Business intelligenceBusiness intelligence22 Virtualization*Virtualization*33 Enterprise resource planning (ERP) systemsEnterprise resource planning (ERP) systems44Continuity planning/disaster recoveryContinuity planning/disaster recovery55 Cloud computing*Cloud computing*

Top 5 Application & Technology Top 5 Application & Technology Investments 2010Investments 2010

* New to top 5

2010 IT budget in comparison to 2009 2010 IT budget in comparison to 2009 (Actual)(Actual)

65%(48%)

(25%)

(23%)

(52%)

66%( 75%)

(2009)

2011 IT budget will be in comparison to 2011 IT budget will be in comparison to 2010 (Projected)2010 (Projected)

73%

(*Back to pre recession range)

62%(66%)

(65%)

(2010)

2010 IT Budget Allocation (Actual)2010 IT Budget Allocation (Actual)

Hardware, Network, Software,

Depreciation32%

(33%)

Internal Staff -Domestic

43%(39%)

Internal Staff -Offshore

3%(4%)

Consulting Services10%

(12%)

Outsourced Staff -Domestic

7%(8%)

Outsourced Staff -Offshore

5%(4%)

(2009)

2010 IT Staff Turnover Rate2010 IT Staff Turnover Rate

2007 Average: 8.132007 Average: 8.13

2008 Average: 8.40 2008 Average: 8.40

2006 Average: 7.202006 Average: 7.20

2009 Average: 6.90 2009 Average: 6.90

2010 Average 2010 Average 5.50 5.50

2011 IT Budget Allocation (Projected)2011 IT Budget Allocation (Projected)

(2010)

IT Budget allocation for Offshore OutsourcingIT Budget allocation for Offshore Outsourcing

20052005 20062006 20072007 20082008 20092009 20102010 2011 2011 (Projected)(Projected)

7.0

IT budget divided between running existing IT budget divided between running existing systems and building/buying new systemssystems and building/buying new systems

2010 20102011 (Projected)

2011 (Projected)

Percentage allocated to running existing systems

Percentage allocated to building/buying new systems

Percent of Percent of youryour IT budget was allocated for IT budget was allocated for education/training (2010)education/training (2010)

(2009)(2009)

1% or less of IT Budget

42%(42%)

2% of IT Budget15%

(14%)

3% of IT Budget8%

(7%)

4% of IT Budget3%

(4%)5% of IT Budget

17%(20%)

8% IT Budget 1%

10% of IT Budget 10%(9%)

IT Budget > 10%4%

(3%)

2009 Avg:2010 Avg:

Anticipated percent of your IT budget Anticipated percent of your IT budget allocated for education/training (2011)allocated for education/training (2011)

1% or less of IT Budget

39%(42%)

2% of IT Budget15%

(15%)3% of IT Budget

10%(8%)

4% of IT Budget

2%(3%)5% of IT Budget

15%(17%)

7% IT Budget 2%

10% of IT Budget 12%

(10%)

IT Budget > 10%5%

(4%)

(2010)(2010)

2009 Avg:2010 Avg:2011 Avg:

IT Budget As Percent of Corporate IT Budget As Percent of Corporate Revenue 2010Revenue 2010

Average: 3.87

52% 48%(2009: 58.3%) (2009: 41.7%)

(2009: 3.83)(2005-9: 3.67)

2010 IT Staff Salaries in Comparison to 2010 IT Staff Salaries in Comparison to 2009 (Actual)2009 (Actual)

83%(2009: 81%)

(2009: 34%)

(2009: 47%)

(2008: 19%)

58%(2009 : 66%)

2011 IT Staff Salaries in Comparison to 2011 IT Staff Salaries in Comparison to 2010(Projected)2010(Projected)

91%

(*Back to pre recession range)

(2010: 45%)

(2010: 46%)(2010: 9%)

39%

CIO or Senior IT Executive Reports toCIO or Senior IT Executive Reports to

Other: Board of Directors, CAO, Deputy CEO, Provost, Executive Vice President, VP Strategy)

(2009)

How long has your CIO (or How long has your CIO (or senior IT executive) held their position?senior IT executive) held their position?

48% =< 3 Years

52% > 3 Years

(2009: 52%)

(2009: 48%)

2010 Average: 5.1 Years 2010 Average: 5.1 Years

2007 Average: 4.1 Years

2008 Average: 4.3 Years

2006 Average: 3.6 Years

2009 Average: 4.6 Years

Architecture7%

(7%)

Human Resources*7%

( 8%) IT Governance*9%

(10%)

Non-IT*11%

(10%)

Relationship Management with

Business*18%

( 19%)Relationship

Management with IT staff*11%

(12%)

Relationship Management with

vendors*#6%

Operations12%

(11%)

Strategy*13%

(15%)

Software development6%

(6%)

#new entry in the list

*75% time non-technical*75% time non-technical(2009 >74%)(2009 >74%)

How CIOs spend their timeHow CIOs spend their time

Within your company's IT organization

38%

Outside your company from an

external IT organization

54%

Within your company but outside of IT

4%

Outside your company from an organization

outside of IT4%

Your current CIO was hired fromYour current CIO was hired from

Outside of IT: General Management 3%, Marketing 2%, CFO 3%

2010 IT Organization2010 IT Organization

Centralized68.0%

Decentralized2.0%

Federated/Hybrid28.0%

Networked2.0%

[ 18.4%;22.2%; 18%; 15.7%][ 18.4%;22.2%; 18%; 15.7%]

[ 70.4%;67.5%;77%; 74% ]

[ 70.4%;67.5%;77%; 74% ]

[ 9.5%; 8.8%; 5%; 10.3% ]

[ 9.5%; 8.8%; 5%; 10.3% ]

[2009;2008; 2007; 2006 findings]

*2.87

*3.03

*2.64

* Alignment Maturity