fujitsu cio technology trends survey 2012

COMMERCIAL IN CONFIDENCE © Copyright 2012 Fujitsu Services Limited

Fujitsu Technology

Perspectives

CIO Research

Office of the CITO, International Business

1 COMMERCIAL IN CONFIDENCE

www.technology-perspectives.com

To provide an assessment of the

business impact of four „mega trends‟:

Cloud Computing

IT Consumerisation

Big Data

Social and Collaboration

Their opinion of how the role of the CIO

and business functions will change in

driving the adoption of these

technologies

Their reaction to the trends presented in

Fujitsu Technology Perspectives

We asked CIOs…

Interview based research, conducted with CIOs on a one-to-

one basis in March and April 2012

Interviews followed an intimate, conversational format

conducted by business peers, based on a set of guidelines

designed to get real, honest and insightful responses (and

deliberately not a questionnaire format)

Respondents selected from a representative sample of

business sectors, a variety regions in UK, Europe and the US

Respondents from major blue chip organisations responsible

for IT budgets from tens of millions dollars to billions of dollars

Research conducted completely independently of any

customer relationship to Fujitsu (mostly organisations are not

Fujitsu customers)

The study deliberately used a small sample in order to „deep

dive‟ into the views and opinions of the CIOs

Method of study

Respondents

Sector Region

Automotive Europe

Financial Services USA

Government UK

Legal UK

Manufacturing (1) Germany

Manufacturing (2) Global

Media USA

Retail Europe

Telecom Global

Utility (1) UK

Utility (2) UK

Note CIOs sampled all represent major blue chip organisations / household names.

The findings

1. Assessment of the business impact

of the four „mega trends‟

2. How the role of the CIO and business

functions will change

3. Reaction to the trends presented in


Copyright 2012 FUJITSU

„Megatrend‟ 1: Cloud Computing

6

Pay-as-you-go services that transform the delivery of

infrastructure and applications within the enterprise

and its external channels

All bar one of the sample are already engaged in

some form of cloud activity

All expressed a view that cloud is vendor hype

Cynicism that tier 1 vendors can be fully

supportive of cloud when it breaks their own

business models

Many have private clouds, one in the sample is

acting as a cloud provider

Nobody willing to put customer data, new product

details or personnel information in the cloud

Loathe to use cloud for anything other than „non-

core‟ apps

A vendor that could establish confidence in a

„totally secure‟ global offer would be unique and

attractive

Cloud Computing common themes

Cloud Computing individual comments

Sector Response

Manufacturing (1) Cloud is “old hat”

Media “Do people really talk about cloud anymore?”

Utility (1) Enjoy the vendor independence that comes from cloud

and switch frequently

Financial Services “Bankers don‟t trust IT vendors”; only one of sample not

currently consuming from cloud but plan to do so over

next 2-3 years

Manufacturing (2) See vendors conflicted between cloud offerings and

traditional hardware & services

Government Acting as a cloud provider to other government

departments

Telecom Have found cloud cuts implementation time for new

business initiatives by 80%

Corporate take up is now a reality

Not yet mainstream across the board but

specific offers within cloud are attractive

Private cloud rather than public cloud and only

for non-core applications or platforms

CIO and business are working together to

implement these technologies

CIOs claim the real business benefits are speed

to implement, lower costs and location

independence

Concerns are security issues, loss of control,

loss of IP, compliance and internal governance

Major opportunity for vendor who can

demonstrate and deliver guaranteed secure

services

Cloud Computing in summary


„Megatrend‟ 2: IT Consumerisation

10

The rise of the mobile device and the changing

relationship between the end user and the IT function

by introducing greater degrees of freedom

All bar one of the respondents have developed

„Bring Your Own Device‟ (BYOD) policies

CIOs perceive this as the fastest moving of the

mega-trends and a major area of focus

Adapting to the trend seen as key to the

survival of the central IT function

In many cases employees are given a one

time payment and guidelines issued over

range of devices

Path of evolution identified starting with the

simplest apps first, and desktop ahead of

remote devices

Central IT no longer has the overhead of

monitoring and evaluating new equipment

IT Consumerisation common themes

IT Consumerisation individual comments

Sector Response

Manufacturing (1) BYOD has made integration of new companies (M&A) much

easier and are seeing benefits from economies of scale

Utility (1) iPads are standard equipment for field engineers, who take

better care of them and therefore been able to replace

„ruggedised‟ laptops

Financial Services Only one of sample not to implement BYOD

Legal With BYOD, they now depreciate hardware over 4 yrs instead of

18 months, dramatic savings

Manufacturing (2) IT strategy retracts perimeter back to the data centre, „Apple-

style‟ lockdown of user devices the new philosophy

Government View IT consumerisation as both an opportunity and a threat

Telecom Insist on their own devices, have „solved‟ security issues with

encryption and remote delete functionality

Majority of sectors are embarked on a BYOD

strategy

Consumerisation has largely been forced on

IT by the business

Some security concerns exist, but most have

implemented in-house monitoring technology

Key to success is well defined standards

Savings are realised from the central

functions, as well as from the overall cost of

the estate

Consumerisation is revolutionising the way

the enterprise works

Fastest moving trend; 5 years ago this was a

„no-go‟ area for CIOs

IT Consumerisation in summary


„Megatrend‟ 3: Big Data

14

The application of new analytical techniques to large,

diverse and unstructured data sources to improve

business performance

Some CIOs regarded as a hyped term,

others were unfamiliar with it, a mixed view

Responses very sector specific –

manufacturing & utilities embracing, retail &

financial services ambivalent

Structure and format of corporate data is a

major barrier to exploiting

Fear there will be too much data and

duplication of data from SaaS and CIOs

will be saddled with fixing the mess

Mixture of strategies from ignore to buy in

from outside to build in-house & exploit

new business

Most CIOs are happy to „sit this one out‟

and leave to others

Big Data common themes

Big Data individual comments

Sector Response

Manufacturing (1) Exploring advanced BI techniques & looking to acquire tools

to exploit vast corporate information

Media Cynical about the business value in return for what would be

a substantial investment

Utility (1) Already thriving on data, maintain masses of data for

forecasting supplier demand

Financial Services Their data is already structured, no need for „big data‟ apps

Legal & Government See the challenge as how to connect experts and collate data

from plethora of regulatory sources; buy not build

Utility (2) Interested in exploiting source and operating data together

but don‟t see as a game changer

Tobacco manufacturer Concerned about unstructured data and multiple data sets

and are monitoring developments in this area closely

Clothing retailer Ambivalent, don‟t see the need for interpretation of mass data

Mobile network View as a potential source of revenue; regulated to store 22

petabytes of data, exploring possibility of selling analytics

Not yet fully understood by the CIO

community

Some CIOs view Big Data as a threat rather

than a benefit

Most agree that more BI analytics would be

beneficial to the business

Some scepticism about the availability of tools

Larger organisations view analytic data as a

source of additional revenue

Fears exist about the authenticity of

consolidated data

Retail and finance sectors not convinced of

benefit

Not a „show stopper‟ in terms of business

change

Big Data in summary


„Megatrend‟ 4: Social and Collaboration

18

Exploiting the power of social networks and virtual

collaboration tools to enable new dialogues and

insights both externally and internally to the business

Respondents in various stages of policy and

strategy regarding social media

Having previously fought, most now allow

Facebook, Twitter, Ebay, YouTube and are

quick to cite successes

CIOs feel they can‟t contain the march of social

media in face of „user power‟

Significant business risks, some reported losses

from negative social media coverage

CIOs are beginning to exploit collaboration tools

to good effect

Telco and manufacturing are using collaboration

for 24 hr design around globe in 8hr shifts

Least hyped of the trends with many sectors

now just „getting on with it‟

Social & Collaboration common themes

Individual comments on Social Media…

Sector Region

Media Have experienced revenue loss from negative

Twitter campaign; but product marketing moving

strongly into social space

Utility (2) Views media strategies and tools as means of

increasing communications and broadening access

to knowledge to partners

Manufacturing (2) Exercising restraint after Facebook campaign drew

criticism from public & media

Retailer Yet to be convinced of business value and have

blocked Facebook & Twitter internally, but are

engaged in a series of trials to develop a strategy

Automotive Recently appointed a head of social media, used

Facebook to launch new car and encourage Twitter

comments on their products

Individual comments on Collaboration…

Sector Region

Manufacturer (1) Believe that virtual teaming, mobility and global

working will dramatically improve business operation

in emerging markets such as Asia

Media Little or no reason to deploy these tools at present

Utility (1) Make use of Yammer and have developed an in-

house tool called to enable virtual working

Financial

Services

Bases much of its operation around collaborative

working, but only internally

Legal &

Government

Acknowledge there are great business efficiency

gains and are experimenting internally

Automotive Make use of Yammer

Telecom Enable global collaboration of teams of experts to

solve problems or project work through in-house tools

Sector variance, some say „do as you wish‟

some say „never‟

Change is being led by the business

Recognise opportunity for product research

and product launch, but also risky

Conscious of underlying security risk

Many see social, mobile & cloud as linked and

a single opportunity

Opportunity to use collaboration tools to

globalise the business, break silos and bridge

diverse culture

Technology has delivered internal benefits of

time, location independence and optimised

skill-sets, but belief is that tools are still

immature

Social & Collaboration in summary

CIO ranking of the „mega-trends‟

IT Consumerisation: the fastest

moving trend, most have now

embarked on a BYOD policy

Cloud: corporate take up a now

reality, but not across all offerings,

specific offers are attractive

Social and Collaboration: some

sector variance, change is being led by

the business

Big Data: A mixed view, some see

as hyped, some are unfamiliar; sector-

specific take-up

Higher

take-up /

maturity

The findings







CIO KPI 3

To demonstrate to management,

business users and shareholders

that IT budget is under control

CIO KPI 2

To ensure the security and

integrity of IT is up to the mark

across the enterprise

The trends challenge traditional CIO KPIs

CIO KPI 1

To provide the functionality the

business needs to time, spec,

budget

„Pay as you go‟ enables the

business to find and purchase

its own solutions

2 out of 3 is not good enough, and results in dismissal of the CIO

Cloud, BYOD and the opening

of social media challenge

traditional security models

Control of IT budget no longer

an excuse as business units

buy direct from vendors

Challenges

Four styles of maturity of the IT function

Chaotic IT

Legacy IT

Dynamic IT

Incre

asin

g m

atu

rity

Cost Efficient IT

NEW

TRAD

Multiple point solutions implemented

to address individual business

requirements; tech silos difficult to

integrate and manage

80% of resources spent „keeping

the lights on‟, IT viewed as a

„necessary evil‟ and impacted by

annual budget cuts

Functionality can be easily added,

reduced and measured enabling

businesses greater flexibility and

freedom

Technology can enable the business

to achieve new objectives, for

example a move to another sector

Legacy IT

The CIO is a failing

business partner

Chaotic IT

The CIO is a failing

commodity provider

Cost Efficient

IT

The CIO is a

commodity provider

Modeling the IT organization

Dynamic IT

The CIO is a

business value

enabler

Mandate

IT as a cost centre

Weak

empowerment

Strong

empowerment

Objective

IT as a business enabler

Legacy ITChaotic IT

Cost Efficient

IT

New technologies enable progression

Dynamic IT

Mandate

IT as a cost centre

Weak

empower-

ment

Strong

empower-

ment

Objective


By applying new

technologies there is a

natural pull from the

legacy to chaotic and to

cost-efficient and even

the dynamic state

New technologies

enable interim steps to

be bypassed and for

the first time desired

state is attainable

As corporate IT is seen

to be providing cost-

effective joined up

solutions it will be

granted greater

empowerment

Not all sectors aspire to

reach the dynamic state

Legacy ITChaotic IT

Cost Efficient

IT

Plotting our respondents

Dynamic IT

Mandate

IT as a cost centre

Weak

empower-

ment

Strong

empower-

ment

Objective


MF

MD

G

L

AM

R FS

U T

Key

AM Automotive

FS Financial

Services

G Government

L Legal

MD Media

MF Manufacturing

R Retail

T Telecom

U Utility

Note with the small

sample size, these

may not be indicative

of wider sector trends

Individual comments on the CIO role (1)

Sector Region

Manufacturing (1) Expect to remain a cost centric centralised function providing

services to the business, no change anticipated in future

Media Inevitable shift in power from central IT to business units over a

2-3 year period with technology at the backbone of the business

Utility (1) Acknowledge that „old style‟ IT is gone forever, and view the

CIO role as an „orchestrator‟ rather than service provider

Financial

Services

IT function perceived as defenders rather than leaders;

perception that as confidence returns to the sector a business

person will take on the role of CIO in orchestrating and

managing resources

Legal Recognise the role of CIO as managing multiple vendors while,

in parallel delivering business change; express apprehension

over skill availability within their preferred timescale

Utility (2) All matters relating to operation of technology will be outsourced

as policy, the new role of the CIO will be as a business partner

with responsibility for business process and investment planning

Individual comments on the CIO role (2)

Sector Region

Manufacturing (2) Does not foresee outsourcing as a viable strategy for their

business, instead prefer to pursue a centralised integrated in-

house capability

Government See the role of CIO changing from policeman to facilitator and

from being risk averse to being a risk manager; before this

status is reached a large amount of chaos needs to be

overcome

Retailer Technology must be applied to speed up processes rather than

force major change; focus on investments in tools that improve

timelines and the quality of decision making

Automotive Their challenge is to be perceived as bringing harmony to a

disconnected business where IT is viewed as an enabler

rather than an inhibitor

Telecom CIO mission is simple: “to lead the business from behind”; CIO

role will become that of an orchestrator of resource in a 50/50

relationship with the business

CIOs unanimous in their greatest

challenge of planning and implementing

change in complex environments

Failure to demonstrate competence

leads to loss of empowerment and real

anarchy within business units

Universal fears around guaranteeing

security and business continuity

Biggest threat is the impact on the

business of accidental disclosure or loss

of information

General perception is the role of the CIO

will become a 50/50 orchestrator of

prime IT vendors and business units

Challenges, fears and ambitions

2002 – „The Peacetime CIO‟

CIOs pursuing similar strategies

2002 Priorities – ERP, off-shoring,

ecommerce, outsourcing, refresh,

consolidation

2012 – „The Wartime CIO‟

Disruptive technologies, inconsistent strategies

2012 Priorities – Mobile? Cloud?

Social? Big Data? BYOD?

Shadow IT? Security threats?

Provider

(builder &

operator)

From Technology Controller… …to Business Enabler

Policeman

(controller &

enforcer)

Facilitator

(enabler &

innovator)

Orchestrator

(integrator &

co-ordinator)

The changing role of the CIO

The findings







CIO ranking of Technology Perspectives

Business

without bordersBig ‘I’ Little ‘T’ Social Working

Choice: The New

One-size-fits-all

People FirstMobile is Dead,

Long Live MobileReal-time Insight Crowding Out

Trading Places Crowding OutEvery ‘Thing’

Connected

Reshaping

Organisations

Higher

Importance

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For further information

For more information on this survey and the issues it raises or

on Technology Perspectives generally, please contact:

David Gentle ([email protected])

or Mark Locke ([email protected])

Office of the CITO, International Business

mailto:[email protected]

mailto:[email protected]