One of the newer EMC team members commented recently that EMC had an internal "information firehose". He was right -- we all get access to a broad river of interesting content.
It's a good day when I can simply read it all -- let alone try and comment on some of it.
But this piece deserves some commentary and reflection. One of my colleagues -- Gil Press -- assembles a composite picture regarding the current gestalt of IT -- sort of a survey of surveys. Since he does this every year, we can glean some interesting year-over-year compares as a result.
And you might find some eye-openers in this ...
The Business of IT Is Business
The renewed focus on IT as a business enabler is strongly seen throughout this material.
Highlights from a recent CIO Magazine survey bear this out. CIOs listed their critical leadership competencies. Note the pronounced shifts from 2009 to 2010.
"Meeting or beating business goals" jumped from 18 to 30%. "Identifying and seizing on business opportunities" leaped from 6 to 22%. "External customer focus" went from 9% to 18%.
All of these are reflective of the resurgence of CIO-as-business-leader.
And, just to put a fine point on it -- note that only 30% of CIOs surveyed say that "expertise in running IT" is key to their current role. That implies that 70% are focused elsewhere.
Elements of this increased outward focus are evident in this survey from McKinsey.
Respondents were asked to rank the potential threat from external information-based or technology-based disruptions. The top 3 ranking haven't changed, but there's activity farther down the list.
The "big three" remain (a) rapid shift in customer expectations, (b) cost curves moving rapidly, and (c) customers who have increased bargaining power through presumably online resources.
I found the fourth entrant interesting -- the potential emergence of better products and services at the same or higher prices.
It ain't always about being cheap.
Will IT Make An Increased Impact In 2010?
This survey from CIO Magazine certainly shows the potential.
Look at the potential areas of business impact, and compare the relative weighting between 2009 and 2010.
There are two areas I find interesting: not only the increased numbers, but the categories themselves.
Let's start with one of my perennial favorites: end user productivity. It's pretty clear to me that most organizations are becoming knowledge-based; any focus on making knowledge workers more productive should ostensibly flow directly to the bottom line.
Or "improve quality of products and/or processes". Over half the respondents expect to make a contribution to this important category of business value. And almost 40% consider their organization a source of business innovation for products and/or services.
IT As A Strategic Differentiator?
Not every business model requires IT proficiency or differentiation. Lots of successful businesses depend on factors other than IT for their success and growth.
But how do you get a handle on how many organizations see IT as a business weapon vs. a necessary evil?
This survey from McKinsey gives you a sense of weighting.
On the left side, we see more tactical concerns -- delivering IT services at the lowest possible cost, and its cousin "improving business efficiency".
On the right side, we see more aspirational statements -- supporting business growth by creating differentiation, or leading the company through a transformation.
66% of the respondents had more pragmatic #1 goals ; only 35% listed more aspirational goals as their top priority. Yes, I know, the answers don't add up to 100, but there you have it.
CIO As Business Leader
At various times in our industry, we joke that CIO should stand for "career is over". This survey from CIO Magazine points to the opposite trends: more seniority, more responsibility and more tenure being the increasing norm.
43% of CIO respondents report to the CEO. And a full 70% have that all-important seat at the business executive management committee.
Almost two-thirds do more than IT stuff -- having a significant non-IT business responsibility as well.
Like many business leaders, CIOs are wearing multiple hats, and increasingly aren't seen as functional specialists.
And the increasing tenure shows that the CIO position isn't the revolving door it once was ...
Investing In New Capabilities in 2010
Simply put, IT investment can be put into two buckets: spending money on what you're already doing, or spending money on new capabilities.
The steady-state view of this is simple: the less money you spend on the first category, the more money you have to spend in the second category.
However, given that we're coming out of a period of extreme economic hardship, one would likely expect a renewed interest in upgraded IT capabilities.
This survey from McKinsey illustrates the point. Only 27% of respondents expected to spend more money on operational expenses in 2010. But a whopping 46% expected to invest in new capabilities in 2010.
The Non-IT View of IT
Just to keep all of this in perspective, consider this survey from ITIC that speaks to senior management's view of IT investments. Not as aspirational as one would hope for ...
79% listed "smooth running" as the result of these investments. 72% listed "cost reduction". 60% listed "avoid regulatory issues".
You can see where the primary locus of thinking lies -- deliver the service, do it cheaply, and keep us out of trouble.
Only half of the non-IT respondents listed "driving new business".
I look at this as one of the key gaps between IT leadership and the business -- the lack of appreciation of what's possible in the realm of IT as a business differentiator.
The Top IT Priorities -- From The CIO
If we look at the list of top IT leadership priorities from CIO Magazine, an interesting picture emerges.
First and foremost is alignment between the business and IT. Compare that with 2009's mandate to cut costs, and I'd consider that good progress.
I'm pleased to see "IT governance" come in at #3. I'm a firm believer that good IT governance results in good IT.
It's also nice to see investments in IT skills -- leadership and individual contributors -- coming in at #5. I see far too many IT organizations investing far too little in their people.
And then there's #6 -- marketing IT's contribution to the business. Yes, that's an increasingly important function, I believe. Not in a "look at all the cool things we're doing" self-serving sort of way, more in a "here are the capabilities we have as an IT organization, let's help you put them to use!" sort of way.
IT Is Constrained
Sure, that's obvious -- but the degree of constraint, and its impact -- is an important consideration and bears watching.
2009 was a rough year for IT. Funding and headcount dried up across the board for most industries. Tough on enterprise IT organizations, tough on those of us in the vendor world.
Not a fun year for anyone ...
CIO Magazine's headline here is that almost two thirds of CIOs had to cancel or defer major projects in a variety of areas, some of which are listed here.
From infrastructure upgrades to better mobile access -- everybody felt the pain.
But there's a bit more to the picture ...
This survey says that "fewer than half the users are effectively using installed software". If IT is all about delivering results to end users to run the business better, that result is incredibly disturbing, and probably worth a detailed exploration in itself.
One could argue that there's an increasing gap between investments made, and benefits seen.
More disturbing is the finding that 60% of CEOs hold IT accountable for "lack of success".
They're not blaming the business, they're blaming IT. And, as I like to say, "perception is reality", especially when it comes to a CEO holding an organization accountable for results.
This survey from McKinsey provides a bit more granular detail.
It asks IT executives to list where they feel their current organizations have competence. The best way to read these results is to subtract the indicated percentage from 100%, which results in the indication that the stated area is not a core competence.
And then a very concerning picture emerges.
51% don't think they're good at managing IT infrastructure. 70% don't think they're good at devising a strategic approach to sourcing. 70% don't think they're good at governing IT performance.
79% don't think they're good at driving business enablement or innovation. And 79% don't think they can target places where IT adds the most value.
Lots of room for improvement, certainly.
In Search Of Alignment
On a final note, consider this survey from McKinsey that speaks to business and IT alignment, or -- more precisely -- the widespread lack thereof.
16% say that business and IT strategy are developed together. 18% say that business strategy is developed with significant input from IT.
I'd call these two categories "aligned" at 34% overall.
By comparison, 47% percent say that business strategy is developed first in isolation, and then handed over to the IT organization.
And another 19% say that there's no relationship whatsoever between the two.
Now, in all fairness, not all business strategies depend on IT. But a lot do.
I wonder what we'll see next year?
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