HARD CASH – WHICH ICT DEVELOP-MENTS HAVE AN IMPACT ON PROFITS?Customer loyalty is the development that has the fastest effect on an enterprise’s bottom line.

Around half of CIOs do not feel equipped to meet the challenges of the future. This issue’s trend watch high-lights how IT heads plan to tame the digital dragon.

WHEN THE FUTURE LOOKS DAUNTING.

70%25% 45%of CIOs have already made signifi cant in-vestments in public cloud, and the majority expect more than half of their company‘s business to be running over public cloud by 2020.

of CIOs plan to change their technology and sourcing relationships over the next two to three years, and many are seeking to partner with small companies and start-ups.

of companies have implemented agile methodologies for part of their development portfolio; although most need to go further to create separate, multidisciplinary teams, with lightweight governance and new, digital skill sets and alternative sourcing models.

THE CLOCK IS TICKING

TIME FOR ACTION

When will the digital transformation of your business become a critical success factor?

Attack is the best defense: an increasing number of CIOs are driving digitization.

MIT Sloan Management Review, Research Report, 2013.

McKinsey & Company, Bullish on Digital: Global Survey Results, 2013.

THE IT RELEVANCE OF BUSINESS OBJECTIVES

Forrester Research, Inc., Business Technographics Networks and Telecommunications Survey, Q1 2013.

Percentage of business leaders stating “important” and “very important”

This year Within the next 2 years

In 3 or more years

It is never going to be important across the entire organization

Support overall employee productivity

Gather better business information

Empower closer engagement

Allow effective and targeted selling

Easy connection with partners; innovation ecosystem

Enhance business innovation capabilities

Speed up the go-to-market process

Attractive employer with collaborative and fl exible working environment

Support the expansion into new product segments

Expand into new geographies to benefi t from business globalization

Digital engagement of emloyees and

business partners

Automation

Digital engage-ment of customers

Digital innovation of products, operating or business models

Big data and advanced analytics

“IF THIS TRANSITION SUCCEEDS AND CIOs

AND THEIR BUSINESSES ‘TAME THE DIGITAL DRAGON’,

MASSIVE NEW VALUE FOR BUSINESSES

CAN BE CREATED, AND WITH IT, A RENEWED ROLE

AND GREATER CREDIBILITY FOR THE CIO AND

THE IT ORGANIZATION. HOWEVER, IF THE DRAGON ISN’T

TAMED, BUSINESSES MIGHT FAIL AND THE RELEVANCE

OF THE IT ORGANIZATION WILL ALMOST CERTAINLY

DISAPPEAR.”Gartner, Executive Programs Survey of More Than 2,300 CIOs Reveals Many Are Unprepared for Digitalization:

the Third Era of Enterprise IT, Gartner press release, January 14, 2014

That time has passed – it is already a matter of survival

Decision makers’ wish list: greater productivity and more customer loyalty.

Gartner, Executive Programs Survey of More Than 2,300 CIOs Reveals Many Are Unprepared for Digitalization: the Third Era of Enterprise IT, Gatrner press release, January 14, 2014.

27% 18% 33% 13% 5%

83%

75%

72%

70%

67%

66%

66%

65%

63%

62%

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<Link> www.t-systems.com/analysts

1876

12551087

MIT Sloan Management Review, Research Report, 2013.

MIT Sloan Management Review, Research Report, 2013.

AVOIDING FALSE STARTSLack of desire, money and IT tools are the three main reasons organizations fail to use technology to make their business better; in percent.

39

33

30

28

28

27

24

19

16

9

No “burning platform”

Not enough funding

Limitations of IT systems

Roles are not clear

Lack of vision

Unclear business case

Business units implementing independently

Culture not amenable to change

Lack of leadership skills

Regulatory issues

WHAT HAS DIGITAL DONE FOR US LATELY?Companies are using technology to have real, transformative impact across customer experiences, internal operations and new business models.

MIT Sloan Management Review, Research Report, 2013.

CEOS’ VIEWS ON THE STATUS OF ‘DIGITAL STRATEGIES’ IN 2013

Our digital strategy is our business strategy

Digital strategy is an integrated part of our main business strategy

We have a digital strategy, separate to our main business strategy

We have some stategy in that area, but not called out as digital

We have nothing we recognize as

digital strategy

39%

11%

35%

14%

1%

INCREASED PRESSURE TO ACT

IDC, 2014 Predictions: CIO Agenda, December 2013.

Gartner, CEO and Senior Executive Survey 2013: As Uncertainty Recedes, the Digital Future Emerges, March 2013.

TANGIBLE GAINSDigerati, the companies that manage digital technology most effectively, see the best fi nancial results.

REVENUE INCREASE PROFITABILITY SHARE VALUES

Our digital initiatives are helping us to…Ensure

cross-channel consistency

Enhance our existing products

and services

Improve the customer

experience

Launch new products and

services

Improve internal communication

Enhance the producitvity of

our workers

Automate our operational

processes

Transition

Develop new business models

Launch new businesses

Expand our reach to new customers

and markets

Number of responses

Customer experience

Operationalimprovements

Business model change

DigeratiFashionistasConservativesBeginners

Before 2017, only 40% of CIOs will rise to the challen-ge from CxOs to partner in strategic planning by produ-cing business-enhancing insights from big data and analytics.

70% of CIOs will increase enterprise exposure to risk in order to dramatically red-uce IT costs and accelerate business agility through increased cloud adoption.

Enterprise business mobility will require 60% of CIOs by 2017 to support an agile architecture with a diverse mix of cloud-based interfaces for legacy and next-generation mobile applications.

The demographic shift to young and mobile custo- mers will require 80% of CIOs in consumer-facing businesses to integrate IT with public social networks by 2015.

By 2015, third platform requirements will drive 60% of CIOs to use enterprise architecture (EA) as a re- quired IT tool to support continuous change and business innovation, but only 40% will deploy EA effectively.

By 2015, 60% of CIO secu- rity budgets for increasingly vulnerable legacy sys tems will be 30-40% too small to fund enterprise threat assessments while main-taining existing reactive security investments.

By 2017, the transfer of third platform investments from IT to line of business budgets will require 60% of CIOs to reduce the cost of infrastructure and opera- tions to focus on business innovation and value.

—

Digitization

Trend watch

FOCUS

21

At the top of CIOs’ to-do lists.

12%

7%

-12%-7%

9%6%

-10%-4%

-24%

26%

9%

-11%