cio summit forecast for management 2009 - … · ©2009 idc 4 cio themes in 2009 controlling it...

Copyright 2008 IDC Reproduction is forbidden unless authorized.

All rights reserved.

Copyright 2008 IDC. Reproduction is forbidden unless authorized. All rights reserved.

CIO Summit

Forecast for Management 2009

Tim Dillon

AVP Research

IDC Australia

July 2009

危機

©2009 IDC 2

What’s in the Deck?What’s in the Deck?

NB: All sources IDC unless otherwise identified

�ITC & : Economic

Impact & Priorities

�ITC & : Operational

Focus

�Wrap Up

©2009 IDC 3

IDC Forecast for Management SurveyIDC Forecast for Management Survey

� Annual research running 10+ years

� Random sampling of 360+ IT executives in May 2009

� 2/3 Australia, 1/3 NZ

3

27%

8%

8%

14%

8%

35% NSW

NT/SA

QLD

VIC/TAS

WA

New Zealand

Response by OriginResponse by Origin

©2009 IDC 4

CIO Themes in 2009CIO Themes in 2009

Controlling IT spending / reducing costs. Businesses are turning to IT to for cost-saving solutions.

Increased focus on human capital management – recruiting / retaining staff. Retain and retrain to be ready for when the market picks up again.

Opportunity - Disruption and change is inevitable

©2009 IDC 5

CIO Top 10 Priorities CIO Top 10 Priorities CIO Top 10 Priorities

6

13

14

10

3

5

1

4

9

2

2006

7

13

12

11

5

4

2

3

6

1

2007

9

14

8

3

4

7

5

2

5

1

2008

10

9

8

7

6

5

4

3

2

1

2009

-5

+5

+5

0

-3

+3

-3

+1

+7

+1

Change

5Manage change/migration

14Telecommunications and IT convergence

13IT staff skills development

7IT business cases

3Abreast of technology

8Aligning IT with business

1New hardware/software

4Meeting users expectations

9Recruiting and retaining staff

2Reducing costs

2005

©2009 IDC 66

Economic:Economic:

Business Sentiment & Cost ReductionsBusiness Sentiment & Cost Reductions

Relatively strong optimism,

now and next 6 months

Admin/Ops, ITC & R&D

©2009 IDC 7

Economic: Economic:

How IT Budgets are AffectedHow IT Budgets are Affected

7Source: IDC’s ACCR Poll of Australian-based Companies – IT/CIO, 2009

©2009 IDC 8

BY GROWTH RATE

Economic - ICT Spending & Growth : By Australian Vertical IndustryEconomic Economic -- ICT Spending & Growth : ICT Spending & Growth :

By Australian Vertical IndustryBy Australian Vertical Industry

3.5Utilities

3.5Transportation

4.3Retail & Wholesale

4.0Average

3.5Communications & Media

3.7Resources

3.7Government

4.0Health

4.0Banking, Finance, Insurance

4.2Manufacturing

4.6Education

4.8Business Services

4.8Construction

2009-2013 CAGR (%)

Vertical

687.0

1,160.5

1,308.6

1,509.0

2,170.3

2,627.8

3,509.7

4,404.8

4,660.5

5,240.7

6,027.2

9,235.4

0 2,000 4,000 6,000 8,000 10,000

Construction

Util ities

Resource Industries

Transportation

Health

Education

Retail and Wholesale

Business Services

Manufacturing

Communication and Media

Government

Banking, Finance and Insurance

(A$M)

BY SPEND

©2009 IDC 9

Economic: Economic:

Impact of the Recession, by top Vertical MarketsImpact of the Recession, by top Vertical Markets

Q: If your organisation was to make cuts in ICT expenses in response to the current economic crisis, what would be the main course of action?

2.9%

0.0%

0.0%

91.2%

5.9%

Retail & Whole sale

0.6%0.0%0.0%3.7%0.0%0.0%Don't know

4.7%11.8%2.9%7.4%3.2%10.0%N/A

0.3%0.0%0.0%0.0%3.2%0.0%Other

75.3%61.8%79.4%66.7%74.2%60.0%External

19.1%26.5%17.6%22.2%19.4%30.0%Internal

ANZ Average

Bus Sces

ManufComms & Media

GovtBFI

©2009 IDC 10

Economic:Economic:

ITC Spend by Vertical / CategoryITC Spend by Vertical / Category

How do you see your organisation’s total IT expenditure changing on a year-by-year basis for the current financial year on CATEGORY ?

10

Res Mfg Const Trans Comms Util Retail BFI Serv Gov Educ Health

PC Hardware 5.5% -4.6% -3.9% 0.5% 1.3% -1.0% 3.9% 3.6% 0.1% 5.3% 6.4% 2.5%

Software 3.6% -2.9% -3.0% 0.6% 1.5% 1.7% 3.8% 5.5% 0.5% 6.0% 4.4% 2.6%

IT Services 3.3% 0.5% -1.3% -1.1% 2.1% 1.6% 1.2% 2.7% 1.5% 5.3% 4.7% 4.0%

Network Hardware 4.3% -0.2% -2.3% 3.7% 1.8% 1.0% 5.1% 6.8% 0.6% 6.8% 2.9% 1.8%

Fixed Comms 3.8% 0.5% 0.5% 2.3% 2.2% 0.3% 2.6% 3.0% 0.6% 3.9% 3.4% 1.5%

Mobile Comms 2.5% -1.8% 1.1% 3.0% 2.0% -0.6% 3.0% 4.8% 3.1% 3.4% 3.7% 2.3%

Permanent Staff 4.0% -2.5% 0.8% 0.8% 1.2% 0.0% 0.7% 1.0% -1.4% 3.2% 3.8% 0.0%

Contractors 1.8% -2.5% 0.7% 1.4% 2.9% 1.4% -0.8% 1.0% -1.6% 0.4% -1.6% -0.8%

Total IT Spend 7.8% -2.2% -0.7% -1.5% 2.3% -2.8% 2.3% 2.8% 0.3% 4.6% 4.3% 5.4%

1.5%

1.9%

1.9%

2.6%

2.0%

2.2%

0.8%

0.1%

1.7%

Total

Res

ourc

esM

anufa

cturin

gCon

stru

ction

Tra

nspor

t

Com

ms,

Medi

a, Ent

Utilities

Ret

ail &

Who

lesa

le

Bank

ing, F

in, Insu

ranc

e

Busi

ness

Service

sG

overn

ment

Educ

atio

n

Heal

th

©2009 IDC 11

Economic : Economic :

ICT Spend by Category 2009ICT Spend by Category 2009--20112011

How do you see your organisation’s total IT expenditure changing on a year-by-year basis for the current financial year on CATEGORY ?

2009 2010 2011

PC Hardware 1.50% -3.54% -5.87%

Servers 1.99% -0.72% 5.94%

Storage 1.90% 0.30% 1.90%

Network Equipment 2.60% 9.25% 12.09%

Other Hardware 2.00% 1.12% 1.96%

IT Services 2.20% 3.31% 3.66%

Software 0.80% 4.98% 5.80%

Fixed Comms 1.00% 5.06% 5.19%

Mobile comms 1.70% 9.90% 9.44%

©2009 IDC 1212

Priority Ranking 09

Ranking 08

Change

Increase Productivity 1 1 -

Exploit Existing Markets Better 2 5 +3

Control/Reduce Costs 3 8 +5

New Products/Services Faster 4 3 -1

Improve Customer Service 5 2 -3

New Regions/Markets 6 9 +3

Better Understand Customers 7 4 -3

New Industry Sectors 8 6 -2

Close Partner Integration 9 10 +1

Support Competitive Initiatives 10 7 -3

Operational : Operational :

Business PrioritiesBusiness Priorities

©2009 IDC 1313

Priority Ranking 09

Ranking 08

Change

Improve Systems Infrastructure 1 2 +1

Back Office Optimisation 2 3 +1

Front Office Optimisation 3 5 +2

Collaboration Technology & Knowledge Management

4 1 -3

Business Intelligence 5 4 -1

Supply Chain Management 6 7 +1

E-Business 7 6 -1

IP Telephony 8 8 -

Service Oriented Architectures 9 10 +1

Wireless & Mobility Solutions 10 9 -1


Tech PrioritiesTech Priorities

©2009 IDC 14

0

2

4

6

8

10

12

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

IT spend as % of turnover

IT spend as % of opexpense

IT spend outside IS budget

14

%

Operational :

Budget as a % of …


Budget as a % of …Budget as a % of …

©2009 IDC 15


CIO Reporting LinesCIO Reporting Lines

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009

Other

CFO

CEO

©2009 IDC 1616

Operational : We Think We’re Doing Rather WellOperational : We Think We’re Doing Rather Well

Nine out of 10 Australian CIOs view new ITC investment as

boosting competitive advantage / operational capability

IT: Mone y Well Spent?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1998 2000 2002 2004 2006 2008

Dis appointe d in IT Inves tme nt

Re turns

Mixed Record in IT

Inves tme nts

Contribute d to Ope rational

Capability

Source Of Compe titive

Advantage

©2009 IDC 17

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009

DK

5+ Years

4-5 Years

3-4 Years

2-3 Years

1-2 Years

< 1 Year

Operational : ROI Expectations: 2005-09Operational : ROI Expectations: 2005-09

<50% under 2 years

70% under 2 years

17

Financial Situation, Lines of Reporting driving Greater ROI Focus

©2009 IDC 18


Who is Accountable for ROI?Who is Accountable for ROI?

0

10

20

30

40

50

60

IT & BusinessLeaders

IT Leaders BusinessLeaders

Don't Know

(%)

2008 2009

©2009 IDC 19

Operational :Operational :

IT Budget Allocation & OutlookIT Budget Allocation & Outlook

0

5

10

15

20

25

30

35

Hardware

Softwar

eNet

wor

kLin

e cos

tsTra

ining

Main

t.Fee

sIn

t. Sta

ffEx t.

Staff

Outso

urc.

Oth

er

(%)

2007 2008 2009

Some Surprises:

Outsourcing falling

Network Costs up

Some Confirmations:

Hardware/SW refresh stretched

Staff Focus higher

©2009 IDC 20


IT Staff Turnover (FTE)IT Staff Turnover (FTE)

0

2

4

6

8

10

12

14

16

18

1996 1998 2000 2002 2004 2006 2008

% s

taff

tu

rno

ve

r

Australia

NZ

All survey

Large Orgs

©2009 IDC 21


Top 5 IT Skills in Demand, 2008 & 2009Top 5 IT Skills in Demand, 2008 & 2009

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Database

Networking

Help desk support

Enterprise applications

IT Service management2008

2009

©2009 IDC 22

Priorities for the Next 12 Months Priorities for the Next 12 Months

Business issues :

1. Improve : infrastructure to increase productivity

2. Exploit : existing markets & customer base more efficiently

3. Control : reduce costs

IT Issues :

1. Systems : Infrastructure (security, storage, network, middleware)

2. Back office: e.g.: Enterprise Resource Management (ERP)

3. Front office: e.g.: Customer Relationship Management (CRM)

©2009 IDC 2323

Thank You : Thank You : [email protected]@idc.comSome Final ThoughtsSome Final Thoughts

Cloud Weary

Relevance of Green IT

Why Virtualise

Managed ServicesEffectiveness

NBN forBusiness

SecurityDisclosure,

LiabilitySkill Sets

危機RISK OPPORTUNITY

危機CRISIS

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