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.
To download the report please visit kpmg.kz web-site.