Matt Oostveen Director of Research

IDC

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Transformation

C-Suite Survey

CFO Perspective

IT Scorecard

Agenda

Multidimensional Transformation

3

By 2014 80% of New Software

will be available via Cloud

In 2013 Tablets & Smartphones

Will Drive Almost 60% of All IT

Market Growth

App Developers in 6 months:

16%: create an app for smart TVs

14%: for Google Glass

In 2013 Digital universe will

expand by almost 50% to just

shy of 4 trillion gigabytes

67% of enterprises over 100

seats are currently involved

in a platform migration

Proving ROI on Big Data in

Australia is rare

7% of organisations do this

57% of ICT decisions will involve

a line of business executive

Growing to 80% in 2016

50% of new marketing hires will

have technical backgrounds

IDC 2013 C-Suite Survey ANZ respondents

704 475 From Australia

CIOs represent

60%

40% CFOs & CMOs

Interlocked quota Business Size, State, Vertical Industry

March to May 2013 Telephone based

4

C-Suite: Business Initiatives

5

Looking out to 2013-14, what will be your organisations top business initiatives?

The 2 watchwords across the business are efficiency & productivity

The challenge we face is doing this in a cost effective way

CFOs go it alone in focusing on market expansion

Business agility is underpinned by the agility of the IT function itself

IDC ANZ CXO Survey, May 2013, n=704

C-Suite: Business Concerns

6

Finding new customers, in new markets generating more profit

Skills shortage in IT is the biggest concern for Australian CIOs

IDC ANZ CXO Survey, May 2013, n=704

Looking out to 2013-14, what are your organisations top business concerns?

CIO: Technology Priorities

7

• Improving or simplifying IT infrastructure 14%

• Lower overall cost structure 13% • Application modernisation

• Adding mobile functionality to existing Apps 12%

• Automating business processes 10% • Reducing App maintenance & testing costs

• Building a more secure IT environment 7%

IDC ANZ CXO Survey, May 2013, n=704

CIO Deployment: The mega-trends

8

Mobility

Cloud

Big Data is

represented by both

platform migration &

BI Predictive

analytics.

IDC ANZ CXO Survey, May 2013, n=704

C-Suite: ROI Expectations On investing in any technology, what would be the timeframe by which you

expect the investment to start giving a positive ROI?

9

11% 15%

42% 32%

31%

26% 31% 25%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CIO & IT CFO & Finance CMO & Marketing

Is dependent on theinvestment

After 5 years

Between 4-5 years

Between 3-4 years

Between 2-3 years

Between 1-2 years

Between 6 months andunder 1 year

Less than 6 months

CIO and CFOs are well

aligned in expectations

around ROI.

CMOs are a different

story with 42%

expecting <6month ROI.

This is often due to the

nature of discrete

projects

IDC ANZ CXO Survey, May 2013, n=704

Indicate your view of business prospects

From

today

CIO: Sentiment

In

6 months

2012

2012

46.9%

55.9%

2013

53.4%

2013

62.1%

+6.5%

+6.2%

Animal Spirits

IDC ANZ CXO Survey, May 2013, n=704 10

CFO: IT & Marketing under pressure

11

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Customer Service & Support

Executive Management

Sales

Research & Development/ Engineering

Finance/ Accounting

IT

Manufacturing or Product Creation

Marketing

Administration & Operations

If your organisation cuts overall expenses, which areas do you

expect will see the largest percentage budget decrease?

IDC ANZ CXO Survey, May 2013, n=704

CFO: Big Data, Cloud, Mobile in focus

12

How would you deliver growth through

technology?

IDC ANZ CXO Survey, May 2013, n=704

0% 5% 10% 15% 20% 25% 30%

Customer lifecycle…

Self-service portal and…

Collaboration tools and/ or…

Implement Mobile Channel…

Cloud computing/ services

Business analytics/ data…

CFOs understand the power

Big Data can bring to the

business. It’s tool to better

understand customers.

In CFO speak, Cloud

computing is seen as a way

to outsource functions

without the adoption hump

& lead time of outsourcing.

Mobility’s increasingly

being viewed by the CFO as

a way to increase

productivity.

0%

5%

10%

15%

20%

25%

30%

35%

1 2 3 4 5 6 7 8 9 10

CIO & IT CFO & Finance CMO & Marketing

[Scorecard] Effectiveness of IT

13

CIO = 7.6

CFO = 6.9

CMO = 6.5

How would you rate the effectiveness of your IT department on a scale of 1 to 10?

Perception Gap

CM

O t

rou

gh

IDC ANZ CXO Survey, May 2013, n=704

C-Suite: What’s ITs Problem?

14

What would drive you to by-pass internal IT?

Velocity is king

especially for functions

such as marketing.

For CIOs lacking IT

skills is the biggest

driver to outsource.

A rigid IT is still a big

driver for bypassing. 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Lower costalternative

More rapidspeed of

deployment

Limited internalIT skills

Flexibility toaccommodate tocustom requests

Customer care /experience

CIO & IT CFO & Finance CMO & Marketing

IDC ANZ CXO Survey, May 2013, n=704

•Allows innovation to be directed to the

appropriate area. Do you want to

innovate at the infra layer, or on services

and sw?

•Velocity – these systems can be

deployed very rapidly

•They work out of the box – private

clouds are hard to build

© IDC Visit us at IDC.com and follow us on Twitter: @IDC Page 15 Source: IDC Australia 2013 Predictions

Converged infrastructure

systems i.e. Bare metal fabric

Converged platform systems i.e.

application optimised

Converged certified systems i.e.

turn-key cloud

In 2013, 2/3 of deployments will be converged systems

What are We Migrating to?

Conclusion

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First define your vision

Then define your strategy

Then communicate it!

Your strategy should align with business requirements • Increasing efficiency & productivity • Increase velocity • Decrease rigidity

Thank you

IDC Australia

L20, 8 Napier Street

North Sydney, NSW

Australia 2060

Matt Oostveen

Research Director

www.idc.com.au

Follow me on Twitter

@mattoost