manifesting legacy: looking beyond the digital era · 2020-05-18 · cios should be actively...
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Manifesting Legacy: Looking Beyond the Digital Era
2018 Global Survey Report Readout
Life Sciences and Healthcare Industry
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 2
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About the 2018 global CIO survey participants
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 2
Source: Deloitte's 2018 Global CIO Survey
Life Sciences and Healthcare industry includes Life Sciences, Health Care Providers and Health Plans sectors.. The CIO N = 95 and CXO N = 15 varies slightly between questions
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The changing role of the CIOCIOs desire to move beyond the traditional trusted operator role and focusing on the clear mandates of transforming the business and driving growth
55% of CIOs surveyed
continue to function as trusted operators that focus on IT efficiency, reliability, and cost containment.
70% of survey respondents agree the
CIO will have one of the most important roles in driving digital in the next 3 years.
Change instigators take the lead on technology-enabled business transformation and
change initiatives.
Business co-creators spend most of their time on business strategy and enabling change
within their businesses to ensure effective execution of the
strategy.
Trusted operators deliver operational discipline within their
organizations by focusing on cost, operational efficiency, and
performance reliability.
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CIOs need to fundamentally shift how they deliver value while ensuring operational excellence to meet organization’s expectations of getting more out of technology
The diminishing role of the Trusted Operator
XX
The Life Sciences and Healthcare industry leads the pack in its number of CIOs that are currently already Business co-creators
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Dimensions of change for the CIOs
CIOs should consider their role against three key areas as they shape the digital future of the enterprise
REDEFINE their role
• Harness digital• Launch tech fluency
REIMAGINE their IT organizations
• Follow the money• Transfuse talent and
culture
REBALANCE their technology
capabilities
• Strengthen the core• Industrialize
innovation
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Digital vanguards are a guide for future leadershipOnly 10% of the IT organizations we surveyed are perceived as market leaders and have a clear digital vision and strategy
10.5% of the Life Sciences and Healthcare industry organizations are digital vanguards, which is 2.6% higher than the average across all industry
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 7
Performance, customers and innovation remain the top global business prioritiesInnovation and Growth are the top two priorities for Life Sciences and Healthcare organizations
Question: What are your CEO/executive leadership’s top business priorities? (Please rank your top 3)
Digital Vanguard CIOs
list innovation as
their top business priority, followed by customers, and growth.
CXOs listed
customers as their
top business priority 55% compared to 48% for CIOs.
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CIOs should be actively involved in shaping and leading digital efforts in their organization to be the driver of transformation and growth
Stepping up to harness digital
40% of CIOs surveyed indicate that they lead digital strategy.
For the 60% that don’t,more than a quarter (27%) are responsible for execution of digital activities.
Question: What are your primary focus areas of digital within your organization (Please rank your top 5)
CXOs listed customer
growth and sales
effectiveness/CRM ~10 points more than
CIOs.
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Launching tech fluencyBuilding technology fluency within their organizations can enable CIOs to establish relationships and better engage with an increasing breadth of stakeholders
BUSINESS STAKEHOLDERS BOARDS CUSTOMERS
Tech fluency efforts should balance the needs of front-
office and back-office functions
High performing companies are more likely to have a technology fluent board
Tech fluency efforts that focus on customer impact are likely to stay away from the “shiny” object syndrome
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CIOs can develop initiatives that drive up organizational tech fluency through broad-based programs, followed by individual curricula for specific audiences based on their needs and interests
Tactics for enhancing tech fluency
96% of CIOs consider it to be their role to make the business more tech fluent.
66% of CIOs have developed proactive educational initiativesthat reach beyond the executive level to help build tech fluency across the organization.
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CIOs can develop initiatives that drive up organizational tech fluency through broad-based programs, followed by individual curricula for specific audiences based on their needs and interests
Tactics for enhancing tech fluency
CIOs are1.5X as likely to
report having a strong relationship with other business functions when they customize their tech fluency efforts.
The Life Sciences and Healthcare industry listed a strong relationship with security and risk
functions only 57% of
the time which is 15%less than the industry
average of 72%.
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Face time with the board mattersThe CIO’s tech fluency strategy can extend across the organization to the board through consistent interactions and technology focused conversations
As the frequency of board interactions increases from annual to monthly, the likelihood of having a digital and innovation focused discussion increases from
39% to 75%
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 13
Telling the IT value creation story CIOs can focus on funding, procurement, and IT finance to better tell the story of value creation and drive IT operating model change
BudgetShift from fixed budget allocation to program
based, iterative funding cycles with joint accountability
Investment governanceTransform how technology investments are
prioritized and measured through tech governance
ProcurementFocus on procurement as a strategic asset to
fill competency gaps
IT Finance Introduce a capability to measure and
communicate the value of IT investments
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 14
Agree on what matters mostWhen IT and the business are aligned on investments and prioritization, they are more likely to have a significant impact on business outcomes. Unfortunately, the CIO survey indicates that IT/business alignment is uncommon
52% of baseline organizations have a technology investment decision making process jointly owned by IT and the
business. 60% of vanguards share this
process.
Only 35% of baseline organizations have a clear process for prioritizing IT investments.
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 15
Show me the valueBoard members and senior executives expect a positive return on all investments, including technology, but many IT organizations come up short
14% of all organizations
say they don’t measure the impact of IT investments at all.
Only 1/5th of CIOs and
CXOs agree that their organization has a structured process for measuring the value of technology investments.
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 16
Budgets held hostageProject-based funding models often lead to chronic underinvestment in technology innovation
How is your overall IT budget allocated?
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Augmenting technology expertise with the soft skills
Life Sciences and Healthcare industry hones in on soft skills
54% of CIOs selected hiring for rising soft skills as important over traditional technical skills.
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Focusing on initiatives that promote culture, diverse experiences and inclusiveness are key in winning the talent war
Building culture: It’s not a cliché, it can be a competitive advantage
Diverse thinking matters, > 58% of US CIOs said they have a formal initiative in place to promote diversity & inclusion.
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 19
Life Sciences and Healthcare industry can focus on emerging technologies while maintaining and strengthening core building blocks
Strengthening the core
Question: Which of the following technology areas will have the most impact on your business in the next 3 years? (Please rank your top 3)
The Life Sciences and Healthcare industry believes
that emerging technologies and cyber will be more impactful to their
organizations in the next three years.
They believe that
legacy/core modernization will be
less impactful to their
organizations in the next three years.
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 20
How strategic is cyber?Baseline organizations continue to view cyber as a cost
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 21
Business acceptance of all things cloud is likely a significant driver of digital transformation, and it’s growing.
Embracing cloud while managing cloud sprawl
% of IT spending on cloud-based services will be doubled across all industries
Question: What percentage of your overall IT spending is dedicated to cloud-based services?
Question: What are the primary reasons for using cloud technology? (Please select all that apply)
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 22
Question: Which of the following emerging technologies do you anticipate investing in significantly in the next 3 years? (Please select up to 3)
AI and Digital lead the pack in emerging technology investments
Emerging technology investments drive future growth
Compared to other industries, the Life Sciences and Healthcare industry plans to
invest significantly more in AI/machine learning over the next 3
years.
They plan to invest
significantly less in legacy/core modernization over the
next 3 years.
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CIOs should consider a formalized innovation capability to deliberately harnesses disruptive technologies
Industrializing innovation
17% to 40%of CIOs are saying that emerging technologies will have the most impact on their organization. This number more than doubled from 2016 to 2018.
2018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 24
There is a significant difference in perspective between CXOs and CIOs on why IT initiatives are unsuccessful
Challenges with IT initiatives
When IT initiatives fail in your organization, what contributes most to failure?
252018 Global CIO SurveyCopyright © 2018 Deloitte Development LLC. All rights reserved.
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