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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
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Disruption and the 3rd
Platform
1
Internet of Things (IoT)
2
IDC’s C-Suite Survey
The impact for IT
Industry Transformation
3 AGENDA
4
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4
Travel and
tourism
Health
Media Sector
Manufacturing
Retail
Transport and
Logistics Banking
Business
Services
“$27 M threat from digital disruptors in banking”
Five Critical Capabilities Enabled by the 3rd
Platform
5
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
Source: IDC
6
Now the IT Marketplace That Matters
Smart phone and
tablets
Cloud
Big
data/analytics
Social
Mainframe, client/server/Internet But what about
budgets?
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 7 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
• Challenges for Australian
C-level executives outside
of IT with their IT
implementations
• Governance and
architecture expertise
• Understanding of new
technologies
How the CIO is Responding
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9 Source: IDC Asia/Pacific C-Suite Barometer 2014, Feb-April 2014 (N=480 ANZ)
Role of IT in Driving Change
30% expect IT to PRIMARILY change the
business
CEO, not a ‘Real’ ICT Advocate
Budgets are not rapidly
expanding
Save to Invest and Innovate
CIOs are expected to find savings to invest
Organisations are challenged by the
third platform
Security is King
High Hopes on Customer
Experience
48% seeing new investments in 2014-2015
Move Over, TV and Print Media
87% see online as a strategic customer
engagement platform
Talent “Not Enough”
Not enough is being done to tackle the talent issue
Greater Inter-dependency between
users and vendors
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What are the priorities for CIO’s in ANZ?
26.5% Market expansion – new
customers, segments
and geographies
Platform for growth
26.3% cost savings or
productivity and efficiency
gains
Focus on the bottom line
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 – customer data, rapid response
2. Leadership – lead the business, educate
3. Governance – enabler, facilitator, innovator
13
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
Transformation Across Industry
By 2018 one third of all top 20 market share leaders in most industries will be significantly disrupted by new competitors
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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
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
Accountabilty
& Transparency
Bidirectional
Communications as
Social Business ROI
Smart
City
Pilots
GOVERNMENT
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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
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
Accountabilty
& Transparency
Bidirectional
Communications as
Social Business ROI
Smart
City
Pilots
Personalisation of services
Broad cloud deployments
Internet of things and smart government
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
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
Analytics
Joined up care
3rd platform mash-ups: Banking innovations
19
5-year horizon
Value of
transformation
2013/14
Mobile on-
boarding
PaaS, Cloud, SaaS
Intelligent
network
Mobile
enablement
Interactive
bank
store
Interactive
commerce
Data-driven
marketing
Social
business
Dynamic
financial
supply
chain Anywhere
banking
Individual
banking Relationship-
based pricing
$4B-$8B $2B-$4B <$2B Investment
BANKING
3rd platform mash-ups: Banking innovations
20
5-year horizon
Value of
transformation
2013/14
Mobile on-
boarding
PaaS, Cloud, SaaS
Intelligent
network
Mobile
enablement
Interactive
bank
store
Interactive
commerce
Data-driven
marketing
Social
business
Dynamic
financial
supply
chain Anywhere
banking
Individual
banking Relationship-
based pricing
$4B-$8B $2B-$4B <$2B Investment
Anywhere banking
Personalisation
Defence - $500M to $3B core banking spending
3D
Value
Chain
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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
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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
Deeply embedded mobility
Supply chain transparency
Factory of the future
What are the Implications for IT?
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What are your Major Challenges Associated with
Leveraging IT?
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• 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
• IT needs to educate the business
– reality/versus hype
• Governance
• Technology can do a lot more
than keep the lights on
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 2014
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The
‘Gap’ is starting to widen…
Emilie Ditton
Head, Asia/Pacific Vertical Markets, IDC Australia
Thank you
editton
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
Top Line
1
Tactical impact
Bottom Line
2
Limited strategic
impact
3
Re-inventing the CIO
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Conclusions
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Building skills is key. Take steps now.
Focus on governance.
Find deeper ways to work with the business.
Educate the business
Worldwide IT Spending Growth
By Technology Segment % Increase
-5
0
5
10
15
2012
2013
2014
29 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
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?
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
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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
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 33 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?