KPMG CIO Survey 2019

Almost two-thirds (63%) of organizations nowallow technology to be managed outside the IT department, a shift that bringswith it both significant business advantages and increased privacy and securityrisks, reveals the 2019 Harvey Nash/KPMG CIO Survey - the largest IT leadershipsurvey in the world, with over 3,600 responses across 108 countries. When ITspend is managed away from the direct control of the CIO companies are twice aslikely to have multiple security areas exposed, and more likely to become avictim of a major cyber-attack.

In an age where anyone with a smartphone andcredit card can set up an IT system, there are both incredible opportunitiesand major risks. Those enterprises that get the balance right between innovationand governance will be the winners,” said Albert Ellis, CEO of Harvey Nash. “Atthe same time, boards are asking their CIO and technology team to prioritizeautomation of jobs. How organizations adapt to automation will increasinglybecome a priority, and many are not at all ready.”

Steve Bates, Global Leader, CIO AdvisoryCentre of Excellence, KPMG International, said, “There is no longer businessstrategy and technology strategy, it's simply strategy with technology drivingit. This research clearly shows that organizations putting technology in thehands of value-creators and connecting the front, middle and back office arewinning in the market. The future of IT is a customer obsessed, well governed,connected enterprise.”

Digital leaders perform better

  • Digital leaders, which are     organizations that consider themselves `very effective' or `extremely     effective' at using digital technologies to advance their business     strategies, performed better than their competitors on every aspect     surveyed:
        These aspects included time to market (53% vs 34% for the rest), customer     experience (65% vs 49%), revenue growth (55% vs 43%) and profitability in     the last year (50% vs 37%). 
  • Digital leaders are also more     likely to introduce `major new changes to products and services' in the     next three years (55% vs 39% for the rest), and focus on making money -     76% of CEOs in digital leader organizations want their technology projects     to `make' rather than `save money', compared to 58% for the rest.

Gender diversity initiatives are failing big tech

  • 74% of IT leaders feel their     diversity and inclusion initiatives within their teams are at most     moderately successful, and there has been only minimal growth in women on     tech teams, 22% this year compared to 21% last year, and no change in the     percentage of female technology leaders at 12%.

First signs of Quantum Computing

  • Although Quantum Computing     Quantum computing is the use of quantum-mechanical phenomena such as     superposition and entanglement to perform computation. is at such an early     stage, 4% (107 global organizations) have implemented Quantum Computing to     at least some degree - with big pharmaceuticals, financial services and     energy organizations making bets in this area.
  • A fifth (22%) of organizations     implementing Quantum Computing were based in the UK, followed by 19% in     the US, and 7% for both Australia and the Republic of Ireland.

IT leaders reporting budget increases - highest for 15 years

  • More technology leaders     reported increases in IT budgets under their control than at any time in     the last 15 years.
  • The jump in those reporting     increases (from 49% to 55%) is the largest seen, with the one exception of     2010, when organizations were still clawing their way out of the global     recession.
  • For technology projects where     the CEO prefers to `save money' almost half (45%) of respondents report     budget increases compared to just 38% last year, suggesting many CIOs are     investing to save, for instance through automation.


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