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The impact of technology in industry on the
changing role of the CIO Emilie Ditton, Head AP Vertical Markets,
IDC Australia
Follow me @editton
Objective
Discuss the environment CIO’s are operating in,
understand the role of IT in the business, and
explore the concerns of the organisation
Explore the third platform and the 4 forces, and
how this is driving fundamental change
The role of innovation
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-11
-6
-1
4
9
14
19
2012
2013
2014
Australian IT Spending Growth
By Technology Segment Total WW IT growth decelerating due to phones and tablets;
Tablet growth slows from 56.8% in 2012 to 6.8% in 2014
PC crash bottoming: -21% in 2012, versus –7% in 2014
Source : IDC Worldwide Black Book Q4 2013;
growth in constant currency
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What are the priorities for CIO’s in ANZ?
26.5% Market expansion – new
customers, segments
and geographies
26.3% cost savings or
productivity and
efficiency gains
Source: IDC ANZ CIO Survey, 2014. n= 480
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0%
5%
10%
15%
20%
25%
Marketexpansion
Efficiency &productivity
Invest in sales& marketing
Overall costsavings
2012
2013
2014
Source: IDC ANZ CIO Survey 2012, 2013 and 2014
Driving Productivity &
Efficiency
Changing Our
Business
Disrupting the
Industry
24.4%. Primarily drive productivity
gains and optimise
business process
Government, health,
education and resources
27.5% create new workflows,
customer engagement
touch points and
operating models
Banking,
Manufacturing, Retail,
Transport
17.5% creating new challenges
and re-think/re-do to stay
relevant
Education and
resources
What Role does IT play in your organization (Top3)?
Source: IDC ANZ CIO Survey, 2014. n= 480
Changing the Business
1. Risk
2. Leadership
3. Governance
7
The CIO and LoB leaders
agree as to the CEO
Challenges
What about CEO Challenges?
0% 2% 4% 6% 8% 10% 12% 14% 16%
Globalization
Rapidly changing customer buyingpatterns
Corporate social responsibility
Lack of relevant skill sets
New competitors
Rapid price/value decline ofproducts/services
Escalating cost of operations
New government regulations
New business models LoB
IT
The only area where there is
difference is in the speed of
customer change
Source: IDC ANZ CIO Survey, 2014. n= 480
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 8 Source: IDC Business Technology Study, May 2013, n = 1227
The Disruption of 3rd Platform
Technologies
61% of funding of technology
projects has shifted to business
What does this mean about:
The role of IT within the
organisation?
How IT needs to be organised?
The CIO and the Organisation Digital is driving change:
• Companies are facing disruption and with it the IT function.
CIO Priorities are Responding: • Growth in supporting marketing
& sales / market expansion
• Productivity & Efficiency within the organization
IT is increasingly seen as an enabler of the top line as well as controlling the bottom line
IT & Business agree in the CEO challenges going forward
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21%
37% 42%
Infrastructure
systems
New
Essential
software
Source: IDC Vertical View Survey, 2013, n = 3,875, 23% Asia/Pacific
IT Budgets for “new” Technology
Five Critical Capabilities Enabled by the 3rd
Platform
10
The 3rd Platform creates the underpinnings for
business process transformation…and in some
cases, business model transformation
Businesses will be able to transform:
How they engage with customers
The speed at which they deliver their products
and services
How they innovate
Their resiliency
The reliability of their operations
With such high stakes, the business is increasingly
taking a front seat in technology initiatives
Driving Towards Healthcare Efficiency Sustainable
Healthcare
Systems
5 Year Horizon
Value of
Transformation
Patient Experience
Cost
Population Health
EMR HIE
Compliance
Competitive
Advantage
Treatment
protocols
Disease
Management
Risk Mgt
Integrated Care +
Health / Wellness
Sustainable
care
Business
Intelligence
Predictive
Reactive
Prescriptive
Population
Health
C
Care Coordination
Now
Clinician access
to clinical
records
HEALTH
Driving Towards Healthcare Efficiency Sustainable
Healthcare
Systems
5 Year Horizon
Value of
Transformation
Patient Experience
Cost
Population Health
EMR HIE
Compliance
Competitive
Advantage
Sustainable
care
Predictive
Reactive
Prescriptive
C
Care Coordination
Now
Clinician access
to clinical
records
3D
Value
Chain
© IDC Retail Insights Visit us at IDC-ri.com
5 Year Horizon
Value of
Transformation
Now
Servitzation Optimization
Product Economics
Future Factory
Resilient SC
Demand Oriented
Data Driven
Digitally Executed
Systems Eng.
Visual Decision Making
Product Economics
Future Factory
Manufacturing Intelligence
Standard Mfg. Ops. Platform
Segmentation Integrated Planning
Resilient SC
Field Service Excellence
& Mobility
Connected Service Platforms
Servitzation Optimization
Engagement
Speed
Reliability
Innovation
Resiliency
MANUFACTURING
3D
Value
Chain
© IDC Retail Insights Visit us at IDC-ri.com
5 Year Horizon
Value of
Transformation
Now
Servitzation Optimization
Product Economics
Future Factory
Resilient SC
Demand Oriented
Data Driven
Digitally Executed
Future Factory
Manufacturing Intelligence
Standard Mfg. Ops. Platform
Engagement
Speed
Reliability
Innovation
Resiliency
Integrated Operations Digital Oilfield
Real-time
Drilling
Production Optimization
Asset Integrity
Delivery Logistics
Informed Drilling
Asset
Surveillance
Operationalized
Asset
Intelligence
Predictive Asset
Intelligence
Remote Operations
Management
Bad Actor
Identification
Transport
Optimization
Enhanced
Scheduling
Unconventional/
Complex
Drilling
Shared High
Frequency
Drilling Data
Profitability Based
Production
Digital Oilfield
Early Adopters
Fully Aware Production
Optimization
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Dynamic Oilfield
Operations Oil and Gas
Integrated Operations Digital Oilfield
Real-time
Drilling
Production Optimization
Asset Integrity
Delivery Logistics
Informed Drilling
Unconventional/
Complex
Drilling
Shared High
Frequency
Drilling Data
Digital Oilfield
Early Adopters
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Dynamic Oilfield
Operations
Mashup
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5 Year Horizon
Value of
Transformation
Sustainable
Urbanization
Now
360-Degree Stakeholder
Engagements, &
Collaborations
Government Innovation in
the 3rd Platform
Innovating Boldly for the
Future
Services
Personalization
IT Resources
Optimization
Industry &
Socio-Economic
Leadership Collaborative
Environments
Tomorrow’s
Govts
AI-Based Services
Personalization
Collective
Intelligence
& Crowd-
sourcing
Multi-Directional
Communications
Further WOG IT
Consolidation
with Cloud
Groom Big Data
Competencies
Predictive
Analytics
M-Government Security,
Access & Control
Geo-location
Awareness,
Analytics
&Security
Performance
Monitoring Tools
Making Sense of
Big Data-
Knowledge
Capture, Content
Management &
Machine Learning
Dynamic
Information
Sharing
24X7 Access to
Virtual Files
Mixed-Combination
Security Solutions to
Mitigate Complex
Threats
Infonomics
Internet-of-
Things to Boost
Operations of
Critical
Infrastructures
Accountability
& Transparency
Bidirectional
Communications as
Social Business ROI
Smart
City
Pilots
GOVERNMENT
Mashup
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5 Year Horizon
Value of
Transformation
Sustainable
Urbanization
Now
360-Degree Stakeholder
Engagements, &
Collaborations
Government Innovation in
the 3rd Platform
Innovating Boldly for the
Future
Services
Personalization
IT Resources
Optimization
Industry &
Socio-Economic
Leadership Collaborative
Environments
Tomorrow’s
Govts
Geo-location
Awareness,
Analytics
&Security
Dynamic
Information
Sharing
24X7 Access to
Virtual Files
Mixed-Combination
Security Solutions to
Mitigate Complex
Threats
Infonomics
Internet-of-
Things to Boost
Operations of
Critical
Infrastructures
Accountability
& Transparency
Smart
City
Pilots
Investment Priorities in ANZ
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Security
Applications
Smart phones
Tablets
Converged
platforms (speciality
systems for Big Data for
e.g.)
Security
Cloud
orchestration &
service m’ment
Data
visualisation/
reporting
Security/
privacy/ risk
management
Data quality/
availability
assurance
Security
Social
collaboration
Business
application/
process
integration
What are your Major Challenges Associated with IT
Implementations?
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• IT needs to educate the business
– reality/versus hype
• Governance
• Technology can do a lot more
than keep the lights on
• 33% of new projects involving
technology will be inhibited until
2018 because of lack of availability
of 3rd platform knowledge and skills
• Building those skills sets will
come from across the business
and not just IT
Lack of required skills to
execute
Growing Complexity of the IT
Environment
•CIOs as partners/facilitators for
innovation for the business
• Build understanding of 4 pillar
technologies within your
organisation
Lack of understanding of
new technologies
Source: IDC ANZ CIO Survey 2012, 2013 and 2014
The types of CIO roles that will develop
Transformation
driving the
business
Achieving cross
company
productivity
Keeping the
lights on
Achieving cross
company
productivity
Keeping the
lights on
Keeping the
lights on
High strategic impact
Technology push
Contribute to the top line
Enable the 3rd platform
1
Tactical impact
Contribute to the bottom
line
Respond to business
Manage risk
2
Limited strategic impact
Day to day IT
management
3
Which one are you going to be?
Conclusions
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Take steps to build the skills
Focus on governance
Educate the business
IT is at a point of inflection..
Emilie Ditton
Head, Asia/Pacific Vertical Markets, IDC Australia
Thank you
editton
Worldwide IT Spending Growth
By Technology Segment % Increase
-5
0
5
10
15
2012
2013
2014
24 Source : IDC Worldwide Black Book Q4 2013; growth in constant currency
Tablet growth slows from 32% in 2013 to 18% in 2014
PC crash has bottomed out: -6% in 2014, versus –7% in 2013
Total IT growth decelerating due to phones and tablets; enterprise spending on software, services
and infrastructure showing signs of improvement in mature economies including US and Europe
