2015 CIO Agenda in the Adriatic. A journey into the head of the Adriatic CIO Prague, February 23, 2015
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1 2015 CIO Agenda in the Adriatic. A journey into the head of the Adriatic CIO Prague, February 23, 2015 While improving business processes and operation effectiveness remains the primary towards IT, closer cooperation between business and IT is emerging as a key factor of future competitiveness among large companies of the Adriatic. 65% of the CIO's are making efforts to align with the changing needs of the business, their attention is often detracted by day to day operation of legacy infrastructure. - a fresh CIO survey from IDC revels. A New Opportunity for the IT to Elevate Its Position Senior executives of large companies in the Adriatic recognize that the business value delivered by IT goes far beyond supporting enterprise cost control. The recent Adriatic IT Buyer's Pulse survey run by IDC, the ICT market intelligence company in Serbia, Croatia, Slovenia and Bosnia-Hercegovina indicates the business decision makers expect IT to play more a transformational role, than supportive role by improving the business processes, information use and workforce effectiveness. The high hopes towards IT creates a new opportunity for the CIO to reposition the IT team and gain a strategic role at equally with the most important enterprise functions. More so as 70 to 80% of the CIO's believe that IT is already mostly or fully capable to strengthen its cooperation with the business and to deliver on the most important s coming from the business. The priorities of the CIO's in the Adritics are largely aligned with the s from the business and reflect a proactive mindset of the CIO's geared towards focusing on the strategic goals of the enterprise, rather than on the internal matters of the IT department. Goals from within the perimeters of the IT department, such as reducing the cost of IT, improving IT processes and project management, consolidating IT operations are significantly outpaced in the list of priorities of the CIO's by goals generated by the business needs and coming from the rest of the organizations. CIO's plan to focus in 2015 primarily improving the quality of IT services, better aligning IT to business strategies, improving the use of company data and initiating projects that drive overall business growth. IT Investment Plans Balanced Between Must Do and Delivering New Business Value However, the top focus areas and IT investment plans indicate a slightly different day to day reality. Infrastructure operations still jeopardizes the attention of many CIOs as they are struggling to realizing value with existing assets. Infrastructure consolidation and infrastructure replacement and expansion are among top three focus areas for nearly half of the CIO's in These activities definitely yield improvement for reducing IT cost, consolidating IT processes and improving the quality of IT services, but their potential to deliver business value on a longer term is limited. Where CIO's can do more for aligning IT with the business is in the area of applications and emerging, innovative solutions like cloud or mobility first strategies. After having resolved the still necessary infrastructure related tasks the attention of most CIO's turn towards applications, the core area where the IT can really have a great impact on the overall business success of the company. In terms of actual investment plans and volumes the importance of extracting value from company data and supporting processes with core applications becomes more visible. Adriatic companies are investing business intelligence, analytics, databases and datawarehouses to make their companies able to capitalize in the fastest growing competitive asset that is company data. ERP comes second in the investment appetite, a position that reflects the core nature of these applications in delivering process efficiency. With the emerging of advanced threats, cybercrime, cyberwar and cyber espionage security represents a topic much talked about, but typically only ranks as the fourth or fifth most important IT investment area for Adriatic companies in The shift to emerging technology solutions appears as a gradual process. However, mobility, cloud solutions and virtualization are more and more often capturing a top 3 place among focus areas or investment plans. Enterprise mobility stand out as 1 in every 5 organization is planning to asses it or invest in it. Private and public cloud services are also gaining recognition as an IT services delivery model being significantly more in focus than traditional outsourcing.
2 The full results of the Adriatic IT Buyer's Pulse Survey will be presented at the IDC ICT Leadership Forum conference touring the cities of Belgrade, Sarajevo, Zagreb and Ljubljana on the period of March and April. The event will discuss the most controversial and worth considering topics at the crossroads of business and technology in a series of presentations, roundtable discussions and workshops aiming to provide practical guidance and actionable takeaways. Question: What are the top priorities your business is expecting IT to focus on in 2015? To what extent is your IT organization capable to deliver on those s? 74% top 3 business * 63% top 3 business 61% top 3 business 52% top 3 business 52% top 3 business 51% top 3 business 38% top 3 business 28% top 3 business 28% top 3 business Note: * Top 5 mentions **Capability to mostly and fully deliver
3 Question: What are the top strategic IT priorities the CIO of your organization is focusing in 2015? To what extent is your IT organization capable to deliver on those priorities? Improving the quality of IT services Better aligning business and IT strategies Improving the use of information/intelligence Initiating and leading projects that enable business growth Reducing the cost of IT Improving IT processes Improving business-it relationship Consolidating IT operations Improving the flexibility of the IT Improving IT project management Initiating and leading enterprise innovation/change projects Improving IT governance Improving the CAPEX/OPEX ratio Developing the technology skills in the IT organization Developing the business skills in the IT organization Improving the management of human resources in IT Improving vendor and supplier management CIO Priorities in 2015 Delivery capability 75% 65% 67% 93% 60% 76% 74% 52% 100% 68% 77% 65% 61% 50% 64% 17% 75% 0% 10% 20% 30% 40% 50% 60% 1st 2nd 3rd 4th 5th mention
4 Question: What are the top focus areas for IT initiatives in your organization in 2015? Top IT Initiatives in 2015 Infrastructure consolidation Infrastructure replacement/expansion Implementation/extension of packaged applications In-house development of new custom applications Application portfolio consolidation/rationalization Custom applications development with external patrner Enterprise mobility In-house implementation of private cloud services Compliance driven developments Adoption of public cloud services Insourcing infrastructure Insourcing applications Outsourcing infrastructure Outsourcing applications 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 1st 2nd 3rd mention
5 Question: What are the top technology areas accounting for significant part of your build and transform type of IT spending in 2015? Technologies for IT Investment in 2015 Business Intelligence/Analytics/Big Data ERP Datacenter infrastructure Databases and datawarehouses Client infrastructure CRM, sales force automation Other back-office applications Workflow, collaboration and productivity Security Document and content management Networking, unified communications, Data lifecycle, archiving Datacenter management and virtualization software Mobile applications Other front-office applications Mobility infrastructure 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 1st 2nd 3rd mention Zoltan Komaromi is the IDC Country Manager for Hungary and Head of the CEE Thought Leadership team. About IDC IDC leads the innovation discussion through events, research, and consulting. For nearly five decades, it has been giving IT and business professionals data and insight to make strategic decisions. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Learn more at
6 IDC CEMA Male namesti 13 Praha Czech Republic idc-insights-community.com Copyright 2014 IDC. Reproduction is forbidden unless authorized. All rights reserved. ###
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