ITRG CIO Outlook 2014
CIO Outlook September 2014
Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2014 Info-Tech Research Group Inc.
Info-Tech Research Group
1
Executive Summary
Info-Tech Research Group
2
Executive Summary What Info-Tech learned from CIOs:
The number of surveyed IT leaders who agree that market expansion and business growth will be the top business priority this year.
Recently, the global economic climate had been characterized by sluggish growth and slow economic recovery from the recent recession.
In an effort to reduce costs and stay competitive, many organizations withheld IT spending. As a result, IT departments are playing catch up with technology.
40%+
This growth will be driven by exploiting new technology and innovations that enable product and service differentiation, as well as improving efficiency to translate top line growth into bottom line profitability.
However, IT departments are still left with symptoms of resource and staffing shortages from the recession. This year, we interviewed over 300 IT executives from all over the world, and our results show optimistic business sentiments, and increasing expectation of economic growth.
Info-Tech Research Group
3
Executive Summary continued
IT leaders are more likely to view their departments as Proactive Operator (52%) focused on working with the business to improve efficiency and optimize processes, rather than as Reactive Firefighter (25%) spending most of the time fixing problems.
A significant percent of respondents even believed their departments meet the classification of Strategic Innovator (23%) with a focus on transforming the business through IT innovations.
The most prevalent challenge is HR related – finding and retaining talent, and updating skills in support of new technologies. Other key challenges for IT departments are combating resource limitations, and developing better alignment and communications with key business stakeholders.
The top IT priority is improving core IT capabilities, followed by supporting business expansion, and improvements in operational efficiency. As IT departments grow in capability, however, they face increasing difficulty supporting the renewed business priorities.
Info-Tech Research Group
4
Question #1: How do you view the IT function in your organization?
Info-Tech Research Group
5
52% of surveyed IT leaders believe their departments are Proactive Operators
CHANGING ATTITUDES OF IT DEPARTMENTS The perception that the capability of the IT department is increasing suggests that CIOs have turned the corner in their belief that IT’s role has expanded, and has the potential to play an increasingly important role in enabling future business strategies.
25% of IT departments still view Reactive Firefighter
themselves as reactive fire fighters Get the fundamentals right and keep the business happy
52% of IT departments view Proactive Operator
themselves as proactive operators
Optimize business process, support business functions and operational efficiencies
23% of IT departments view Strategic Innovator
themselves as strategic innovators Leverage technology to enable business expansion and define new industry frontiers Info-Tech Research Group
6
The IT leader’s perception of the capability of the IT department differs by industry IT leaders in healthcare, education and industrials are more likely to classify their IT departments as Reactive Firefighters while those in Technology & Telecommunication and Government & Public Services are more likely to classify their IT departments as Strategic Innovators. Reactive
Proactive
Innovative
H E AL T H C AR E
35%
E D U C AT I O N
35%
41%
24%
I N D U S T R I AL S
33%
44%
22%
F I N AN C I AL S
24%
C O N S U M E R D I S C R E T I O N AR Y
22%
P R O F E S S I O N AL , S C I E N T I F I C & T E C H N I C AL S E R V I C E S TECHNOLOGY & T E L E C O M M U N I C AT I O N
18%
GOVERNMENT & PUBLIC SERVICES
19%
E N E R G Y, M AT E R I AL & U T I L I T I E S Average Capability Level
47%
56%
13%
63% 41%
17% 41%
51%
31%
74% 25%
20%
65%
20%
11%
18%
52%
16% 23%
Info-Tech Research Group
7
IT budget and size of organization do not drive capability maturity level Indeed, IT leaders from larger organizations and those with larger IT budgets are less likely to think of their IT departments as Strategic Innovator. The complexity involved in operating a large IT department appears to leave less room to focus on IT innovations.
IT Capability Maturity by Size of IT Budget
IT Capability Maturity by Size of Organization (# of FTEs)
70%
61% 61%
60%
57%
51%
48% 50%
50%
52%
52%
46% 40%
40% 32% 30%
28% 25% 25%
31%32%
27% 24%
23%
20%
21% 15% 16%
23% 16%16%
16% 8%
10% 0% Reactive Firefighter Less than $5M
Proactive Operator $5-15M
$15-50M
Strategic Innovator
Reactive Firefighter
$50M+
Less than 249
Proactive Operator 250-999
1000-4999
Strategic Innovator 5000-9999
Info-Tech Research Group
10000+
8
Question #2: How do senior leaders in your organization view the IT function?
Info-Tech Research Group
9
IT leaders believe that the senior business leaders in their organizations view IT as being somewhat less innovative and more reactive than they do 30% of those surveyed believe there is a discrepancy between the IT department and the business’ view of IT’s capability level. This perceptual difference speaks to relationship gaps, and the challenge that IT leaders face in communicating the business value of IT. How IT Thinks Business Views IT
How IT Views Themselves
Reactive Firefighter 31%
Proactive Operator 53%
Reactive Firefighter 25%
Strategic Innovator 16%
Proactive Operator 52%
Strategic Innovator 23%
9%
30% 17%
17% of IT leaders think the business views IT lower than do the IT leaders
30% of IT leaders think the business views IT differently than do the IT leaders
9% 9%
of IT leaders think the business views IT as higher than do the IT leaders
70%
Business View Unknown 4% IT thinks business view aligns with IT’s view 70%
Info-Tech Research Group
10
Industry analysis shows some significant differences in how IT leaders think senior business leaders view their IT departments • IT leaders in Education believe that the business views IT as far less reactive (16% less reactive) than the IT leaders do
• IT leaders in Industrials, Technology &Telecommunications and Energy, Materials & Utilities believe that the business views IT as far less innovative (14%, 15% and 12%, respectively) than the IT leaders do
HEALTHCARE
EDUCATION
16%
38%
+
34% INDUSTRIALS
-
FINANCIALS
CONSUMER DISCRETIONARY
TECHNOLOGY & TELECOMMUNICATION
GOVERNMENT & PUBLIC SERVICES
ENERGY, MATERIAL & UTILITIES
+
-
9%
14% 23%
-
8%
11% 19%
22%
43%
13%
65%
+
14%
13%
-
48%
21%
7%
62%
+
10%
20%
30%
+ 6%
+ 6%
10% 17%
-
15%
25%
40%
18%
12%
19%
56%
22%
12%
44%
56%
22%
18%
19%
43%
25%
20%
16%
34%
2%
21% PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES
13%
44%
9%
34% 23%
3%
45%
-
22%
-
39%
6%
39%
• And IT leaders in Consumer Discretionary and Professional, Scientific & Technical Services believe that the business views IT as more reactive (22% and 14%, respectively) that the IT leaders do
+
39%
40% 45%
-
8%
23%
51%
31% 65%
71%
-
12% 18%
IT Leaders’ Assessment
Info-Tech Research Group
11
Question #3: What are your top strategic technology projects planned for the coming year?
Info-Tech Research Group
12
With the economic recovery underway, there is a renewed focus on improving core IT capabilities and supporting business expansion Core IT Capabilities 1 Infrastructure 41%
2 Core Apps 34%
TOP 10 IT PROJECTS % of respondents planning/implementing in the next year Almost two in every five IT leaders are planning to strengthen and upgrade their IT infrastructure in the coming year; and one-third of IT leaders will focus on improving the core technology capabilities and supporting business expansion.
3 Support Business Expansion
32%
6 Interactive 21%
7 ECM 17%
4 BI 29%
Mobile 25%
8 ERP 17%
5
9 CRM 17%
10 Security 17%
Refer to the Appendix for a mapping of IT projects to categories. Info-Tech Research Group
13
While analysis by capability maturity level shows some differences in priorities, infrastructure, core technology, and business expansion projects are within the top four at all levels BI initiatives are also under consideration by Proactive Operators and Strategic Innovators. Cloud projects are more of a focus of Reactive Firefighters, who may be later to adopt Cloud than the others, or may see it as a means to escape firefighting.
Reactive Firefighter Infrastructure
50%
Expansion
38%
Mobile
26%
Core Tech
24%
BI
23%
Cloud
20%
Proactive Operator
Strategic Innovator Infrastructure
40%
Infrastructure
37%
Core Tech
40%
Core Tech
35%
Expansion
34%
BI
30%
BI
31%
Expansion
29%
Interactive
27%
Mobile
28%
ECM
21%
Security
22%
ERP
22%
Interactive
21%
In general, IT departments of all maturity levels are working on similar projects.
Info-Tech Research Group
14
Question #4. Select your top business partners within the organization and rank in order of importance.
Info-Tech Research Group
15
IT is increasingly aligning itself with organizational functions that drive revenue and/or facilitate service delivery IT departments are increasingly becoming key business enablers to Corporate Oversight and Core Business Operations after a long history of focusing on Support Services, such as Finance. Core Business Operations
Corporate Oversight
Strategy Governance and Management
30% 16% 22% 30%
#1 Business Partner
#1 Business Partner by % of respondents
#2 Business Partner
14%
30%
Support Services
Finance HR Legal Business Intelligence Supply Chain Risk, Compliance& Audit
11%
45%
16%
11%
14%
#2 Business Partner
31%
28%
#3 Business Partner
36%
#4 Business Partner
#2 Business Partner #3 Business Partner #4 Business Partner
Business Support Operations
28% 33%
#1 Business Partner
Product Development Back Office Operations Sales & Marketing
14%
#1 Business Partner
45% 25%
#3 Business Partner #4 Business Partner
Front Office Operations Channel Delivery Client Facing Sales Product Management
19%
#1 Business Partner #2 Business Partner #3 Business Partner #4 Business Partner
Info-Tech Research Group
16
IT departments in industries characterized by high regulation and compliance have an even stronger alignment with Corporate Oversight
Core Operations
Technology & Telecommunication
Consumer Discretionary
15%
47%
10%
39%
Industrials
33%
Healthcare
32%
% selected as #1 Business Partner
17%
50%
Energy, Material & Utilities
Education
17%
52%
Financials
11%
45%
17% 4%
31%
15%
29%
28% 39%
19%
35%
6%
14%
10% 26%
4%
11%
13% 19%
16%
22%
17%
28%
Oversight
16%
55%
Government & Public Services
IT has a stronger alignment with Corporate Oversight
Services
68%
Professional, Scientific & Technical Services IT has a stronger alignment with Core Business Operations
Support Operations
47%
11%
30%
Info-Tech Research Group
17
There was a difference in the selection and prioritization of business partners by size of organization IT leaders in smaller and mid-size organizations were more likely to choose Core Business Operations as their top business partner.
Info-Tech Research Group
18
Question #5: How are innovations in technology affecting your role as IT leader?
Info-Tech Research Group
19
The role of the IT leader appears to be highly affected by demand from the business for innovative technology solutions Coupled with the effort of keeping up with technology innovation, and the increasing opportunity for the business to work directly with vendors, the role of the IT leader is becoming increasingly challenging. Strongly Affected
Business is demanding innovative technology solutions
Slightly Affected
45%
IT innovations are helping improve quality of service
31%
Business demands require IT be up to date with new technology and its ability to drive business value
29%
IT is having difficulty keeping up with technology innovation
18%
New innovations are helping drive down IT cost
17%
Vendors are approaching business directly to sell solutions
15%
Business is purchasing technology solutions without IT
15%
IT is seen as a barrier by the business to using innovative technologies
Affected
8%
Not Affected
41% 55% 49%
32%
48%
11%
3%
6%
9%
30%
33%
26%
2%
16%
41%
26%
11%
41% 44% 43%
5% 10% 15% 22%
Info-Tech Research Group
20
The extent to which innovations in technology affect the role of the IT leader varies by the size of IT department and the size of the organization
IT leaders of larger IT departments are more likely to report that they are affected by demand for innovative technology solutions from the business.
Strongly Affected
Affected Less than 50
IT leaders in larger organizations are less likely to respond that technology innovations help improve quality of service.
51-100
101-300
300+
1000+
Strongly Affected Affected
Less than 249
250-999
1000-4999
5000+
10000+
Affected
IT leaders in larger organizations are more likely to be affected by vendors directly approaching the business to sell solutions.
Minimally Affected Less than 249
250-999
1000-4999
5000+
10000+
Info-Tech Research Group
21
Question #6: List the top three ways you believe the IT organization adds value to the business overall.
Info-Tech Research Group
22
There was not strong consensus among IT leaders on how the IT department adds value to the business
52% 48% 47% 40% 29% 20% 20%
17% 12% 9%
think IT improves Quality Of Service
THE VALUE ADD think IT facilitates Integration Across the Organization think IT lowers Total Cost of Operations think IT improves Collaboration think IT improves Insights Into Customers, Sales and Performance Through Analytics think IT facilitates Innovation think IT assists In Driving Sales and Revenue think IT Facilitates Product Delivery
Though 45% of IT leaders agree that “Core Business Operations” is the most important business partner for IT, only 20% believe that IT adds value by assisting in driving sales and revenue, and only 17% believe that IT adds value by facilitating product delivery.
think IT mitigates Costs think IT improves Time to Market Info-Tech Research Group
23
IT leaders with larger budgets are more likely to report that IT adds value to the business by “improving insights into customers, sales and performance through analytics” …and less likely to report that IT adds value to the business by “improving quality of service”. Top Three Ways IT Adds Value to Business: Enterprise Organizations (over 10,000 FTE)
Size of IT Budget by % Respondents 80%
Improving quality of service
1. 2. 3.
60%
Lowers total cost of operations Improves collaboration Facilitates integration across organizations
40%
Top Three Ways IT Adds Value to Business: Large IT Departments ( over $50 million annual budget)
20% 0% Less than $5M
$5-15M
$15-50M
$50M+
1. 2. 3.
Improves insights into customer, sales and performance through analytics Lowers total cost of operations Facilitates integration across organizations
Info-Tech Research Group
24
Question #7: What are the five biggest challenges that are furthest away from resolution?
Info-Tech Research Group
25
The most often acknowledged unresolved challenge was HR related, such as staffing and retention For the most part, there was little difference by capability maturity level in the challenges that IT leaders face. 30%Top Challenges by % of Respondents
26% 25% 24%
HR Issues
22%
IT Alignment with Business & Other Partners
Challenges: Common to all Capability Maturity Levels • • • • • • •
HR Issues Budget &Resource Limitations IT Alignment with Business & Other Partners Integration Increase Efficiency Process Improvement Governance, Risk and Compliance Challenges: Innovator Level
Budget & Resource Limitations
20% Adapting to Changes in Technology Governance, Risk and Compliance
15% 14%
Increase Efficiency Integration
12% 11% 10% 10%
Big Data & BI Process Improvement Legacy Systems, Applications and Infrastructure Upgrade
• Big Data & BI 16% • Legacy Applications/Infrastructure Upgrade 12% • Adapting to Technology Change 10% • Mobility & BYOD 9% Challenges: Proactive Level • Adapting to Technology Change 17% • Demand & Priorities Management 13% • Big Data & BI 11%
Challenges: Reactive Level
• Mobility & BYOD 13% • ITSM 13% • IT Strategy 12% • Legacy Applications/Infrastructures Upgrade 11%
5% 0.9
1
1.1 1.2 1.3 1.4 1.5
Info-Tech Research Group
26
Question #8: How do you reconcile IT spending with business value?
Info-Tech Research Group
27
Only one-third of IT leaders report that IT costs are allocated back to the business At the Strategic Innovator level, more IT departments allocate all costs back to the business. In addition, more Strategic Innovators use methods other than allocating by lump sum or by discrete IT services rendered.
Info-Tech Research Group
28
The likelihood of IT costs being charged back to the business increases with the size of the IT budget For IT departments with budget exceeding $50 million, the majority allocate all costs back to the business by some means. IT budget reallocation by size of IT budget Less than $5M
$5-15M
$15-50M
$50M+
50% 43%
51%
41% 40% 35%
35% 31%
29%
28%
30% 22% 20%
17%
13%
13% 10%
17%
16%
9%
11%
10%
9%
7%
7%
6%
0%
IT does not allocate IT allocates some, but IT allocates lump sum IT allocates costs costs back to business not all costs costs back to business based on discrete IT units services rendered
IT uses alternative method of cost reconsiliation
Info-Tech Research Group
29
Question #9: What are the top business priorities for your organization?
Info-Tech Research Group
30
Though respondents indicated that market growth and expansion is the business’s top priority, supporting business expansion was third in IT’s top projects Communicating to the business the role of infrastructure projects and core technology improvements in facilitating market growth will be key to alleviating any doubt regarding alignment between IT and the business.
Top Business Priorities by % of Respondents 0%
10%
#1 Market Growth & Business Expansion
20%
40% 36%
#2 Technology & Innovation
30%
IT Top Projects Top 5
40%
#1 Infrastructure #1 HR Issues #2 Core Technology Improvements
#3 Increase Operational Efficiency
27%
#3 Supporting Business Expansion
#4 Improve Customer Service/Product Quality
26%
#4 BI
#5 Governance Risk and Compliance
11%
#5 Mobile
Info-Tech Research Group
31
Moreover, IT may find it difficult to support the business’s priorities to any great extent until it addresses its own challenges… …including the challenge related to alignment with the business and other partners.
IT Top Challenges
Top Business Priorities by % of Respondents
Top 5 0%
#1 HR Issues #2 Limited Budget & Resources #3 IT Alignment with Business & Other Partners #4 Adapting to Changes in Technology #5 Governance, Risk & Compliance
10%
20%
#1 Market Growth & Business Expansion
40%
40%
#2 Technology & Innovation
36%
#3 Increase Operational Efficiency
27%
#4 Improve Customer Service/Product Quality
26%
#5 Governance Risk and Compliance
30%
11%
Info-Tech Research Group
32
Appendix
Industry Breakdown Survey Demographics Survey Questions IT Projects Categorized
Info-Tech Research Group
33
More than 300 IT leaders completed the survey
10 Industries* Government & Public Services
314 Survey Responses from IT leaders Online -19 Interviews with Influential IT Executives
75 Responses
Financial Services and Insurance 54 Responses
Industrials Manufacturing & Construction 37 Responses
Healthcare
Education
34 Responses
32 Responses
Professional, Scientific & Technical Services
Consumer Discretionary 23 Responses
Technology & Telecommunication
22 Responses
30 Responses
Energy, Material & Utilities 20 Responses
* Two organizations that operate across a range of diversified industries were categorized as “Others”
Info-Tech Research Group
34
The majority of respondents are from organizations with fewer than 5,000 employees, and fewer than 50 people in IT Location
Size of IT Department 301-1000 6%
20% from
1000+ 4%
Canada
52% from the
28% from Rest
United States
of the World
101-300 15%
Less than 50 56% 51-100 19%
Global Organization Size (# FTE) 10000+ 14%
IT Budget (Including CAPEX and OPEX) $50M+ 10%
Less than 249 16% $15-50M 15%
5000-10000 8%
Less than $5M 37%
250-999 26%
1000-4999 36%
$5-15M 38%
Info-Tech Research Group
35
CIO Outlook survey questions Classifying Questions
• Your Title • In which country are you located?
• How many employees are there in your organization globally?
• What is the size of your IT group including all subcontractors currently providing FTE services?
• In which industry do you work?
• What is the size of your IT budget including CAPEX and OPEX?
Survey Questions 1. How do you view the IT function in your organization? 2. How do senior leaders within your organization view the IT function? 3. What are your organization’s top strategic technology projects planned for the coming year?
4. Select your top business partners within the organization and rank in order of importance. 5. How are innovations in technology affecting your role as IT leader? 6. List the top three ways you believe the IT organization adds value to the business overall. 7. What are your five biggest challenges that are furthest away from resolution? 8. How do you reconcile IT spending with business value? 9. What are the top five business priorities for your organization? Info-Tech Research Group
36
After reviewing over 2000 responses from surveyed respondents, the following categories were applied to better analyze data IT Projects Mapping Long Name
Short Name
Business Intelligence Implementation or Improvement Business Process Improvement / Business Process Management Cloud Deployment or Upgrade (SaaS, IaaS, PaaS) Business Consolidation Core Business Technology Implementation or Upgrade CRM Implementation or Upgrade Client-facing Technology Implementation or Improvement (excl. Interactive / Digital) Enterprise Architecture Information Management Implementation or Improvement (includes ECM) Efficiency and Optimization (Cost and Resource) ERP Implementation or Upgrade Business Expansion or Transformation (includes M&A) GIS Implementation or Improvement Governance, Risk, and Compliance Initiative HRIS Implementation or Improvement IT Infrastructure Improvements Interactive / Digital Channel Implementation or Improvement IT Governance or IT Process Improvement IT Strategy (includes infrastructure, or app strategy) ITO / BPO Planning and Migration ITSM or ITIL Mobile-specific Initiative No Project Identified Other Project Type Project Management Methodology/Improvement Social Media specific Initiative Virtualization Security BCP/DRP
BI BPI/BPM Cloud Consolidation Core Tech CRM Cx Tech EA ECM Efficiency ERP Business Expansion GIS GRC HRIS Infrastructure Interactive IT Governance IT Strategy ITO/BPO ITSM Mobile No Proj Other PM Social Virtual Security BCP/DRP
Strategic Business Projects IT Focused Projects
Info-Tech Research Group
37
Info-Tech will not assume responsibility or liability for damages or losses suffered by anyone as a result of circulation, publication, reproduction or use of this document contrary to this disclaimer. Information in this document is based on the scope of this strategy and limitations set out therein. © 2014 Info-Tech Research Group Inc, a Canadian Corporation and its associated firms Info-Tech Research Group International and McLean & Co. All rights reserved. Printed in Canada.
The Info-Tech name, logo are registered trademarks or trademarks of Info-Tech Research Group.
Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2014 Info-Tech Research Group Inc.
Info-Tech Research Group
38
Signature Canada 2014 Leadership Paradox: Why High Performing CIOs and CHROs Don’t Become CEO Special Invitation for Leading CHROs and CIOs
November 18th - 20th, 2014 Co-hosted by David Nicholl, CCIO for the Province of Ontario Toronto, Canada Info-Tech Research Group Head Office Historic Masonic Temple 888 Yonge Street
Letter of Invitation We are writing you today to invite you to a special event we will be holding for a select group of Chief Information Officers and Chief Human Resource Officers from large enterprises. Signature Canada will bring together HR and IT leaders for a rich discussion on the “Leadership Paradox: Why High Performing CIOs and CHROs Don’t Become CEO.” Let us provide you with some background on why we’d like you to join us. Over the last twenty years, IT and HR have transformed from administrative functions to some of the most important strategic assets to an organization. High performing CHROs and CIOs have built world-class departments and wield more influence than ever over the corporate agenda. Yet despite their exemplary performance, Info-Tech and McLean & Company’s recent study found that virtually no CHROs or CIOs ever become CEO. In fact, their study found that many of the practices that exemplify IT and HR excellence have come to impede the performance of CHRO and CIO. By contrast, Finance has adopted many practices that have led the CFO to become the most likely successor to the CEO.
Source: Leading CEOs: A Statistical Snapshot of S&P 500 Leaders (SpencerStuart)
Just as importantly, this pattern isn’t just about your success and advancement, but in fact those same behaviors that impede your progress also compromise the value that your department can deliver. Our two-and-a-half day event will examine the current state of affairs and explore how you can build an organization that is reactive and agile. We will highlight where organizations are and where organizations need to be around three key themes: technology, leadership and the ability to transform your organization. We will be holding the Signature Canada Event on November 18th - 20th, 2014. We hope you can join us for what promises to be a great week. Sincerely, David Nicholl, CCIO Province of Ontario
Davin Juusola, SVP McLean & Company
Tentative Agenda
November 18th 3:00 PM
Registration and Tours of Historic Masonic Temple
7:30 PM
Featured Keynote Business Leadership & Technology Innovation Robert Herjavec, Founder & CEO of The Herjavec Group
November 19th 8:00 AM
Breakfast
9:00 AM
Opening Keynote Obstacles to Becoming the CEO and How IT & HR Can Overcome Them
10:45 AM
Panel Discussion How Building a World Class Department Can Create a Ceiling for the CxO and Team
12:00 PM
Lunch
1:00 PM
Breakout Sessions CIOs: Creating the Technology Enabled Enterprise of the Future Tomorrow’s CIOs: Holistic Data Management Workshop – Part 1 CHROs and Tomorrow’s CHROs: Innovative Practices in Stakeholder Management
2:30 PM
Breakout Sessions CHROs & CIOs: Building Processes that Unleash Organizational Transformation Tomorrow’s CIOs: Holistic Data Management Workshop – Part 2 Tomorrow’s CHROs: Leveraging Employee Input to Improve Employee Engagement
4:00 PM
End of Day
5:00 PM
Cocktails
6:00 PM
Awards Dinner
Tentative Agenda November 20thth 8:00 AM
Breakfast
9:00 AM
Keynote How the World is Changing
10:00 AM
Panel Discussion What the Future Holds for IT and HR
11:00 AM
Breakout Sessions CIOs: Current State: IT Benchmarking by the Numbers CHROs: Current State: HR Benchmarking by the Numbers Tomorrows CIOs: High Impact Leadership – Effectively Influence Organizational Stakeholders Tomorrows CHROs: High Impact Leadership – Effectively Influence Organizational Stakeholders
12:30 PM
Networking Lunch & Info-Tech Member Update
1:30 PM
Breakout Sessions CIOs: Future State: Key IT Trends for 2015 CHROs: Future State: Key HR Trends for 2015 Tomorrows CIOs: High Impact Leadership – Effectively Influence Organizational Stakeholders Tomorrows CHROs: High Impact Leadership – Effectively Influence Organizational Stakeholders
3:00 PM
Adjourn
Testimonials
“Stimulating day with bright people. What could be better?” Dave Burritt Chief Financial Officer US Steel
“Good discussion, great venue, interesting research and topic” Julie Taylor Chief Human Resources Officer PALL Corp
“Amazing group of people & leaders. True value in discussions and interactions today.” Kurt Steege Chief Information Officer McAndrews Forbes Holdings
“Interaction and variety of perspective valuable…allowed for contribution.” Jim Stikeleather Chief Innovation Officer Dell
“Clearly, this session delivered on its promise.” Gloria Santona General Counsel McDonalds
Invited Organizations
Biography of Co-Host David Nicholl was formally appointed corporate chief information and information technology officer in November 2008. He was acting as the corporate chief information and information technology officer since May 2008. Prior to that, he held the position of corporate chief of infrastructure technology services, within the Ministry of Government and Consumer Services, since 2006. He was responsible for leading the establishment of the Government’s new infrastructure technology services organization (TCS), establishing its business and service delivery model; and implementing key e-Ontario infrastructure consolidation projects. Prior to joining ITS, David was the CIO at the Transportation I&IT Cluster (TC). David joined the TC in 2002, returning to the Ontario government where he worked as a programmer/analyst during the early 1980s. Previous to the TC, David worked at Oasis Technology — a leading global provider of Unix/NT-based ePayment systems to card associations and financial institutions - where he was SVP of global consulting and delivery. In this role, he was responsible for the delivery of the company’s products to new customers and for the support and training of Oasis’s approximately 150 clients in 70 countries. David also spent seven years in Bermuda and the United Kingdom where he worked for HSBC (Bank of Bermuda) as VP and director of IT. His responsibilities included the creation of a new IT strategy to support the introduction of an electronic servicing capability for the bank’s global customer base; the development of a resources plan to reduce IT operating costs, and the development and support of all business applications in a 7/24 environment. Previously, David worked at the Toronto Dominion Bank as a systems/project manager.
Biography of Keynote Speaker
Robert Herjavec is one of North America's most recognizable business leaders. A first generation immigrant, Robert, age 8, arrived in Halifax, Canada on a boat with his parents after escaping Communism in the former Yugoslavia. From delivering newspapers and waiting on tables, to launching a computer company from his basement, his unlimited dreams led him to experience the classic “rags to riches” immigrant story. A dynamic entrepreneur, Robert has built and sold several IT companies to major players including AT&T and Nokia, on his way to amassing a personal fortune. Following a short retirement, Robert recently launched, The Herjavec Group (THG), a $125 million managed security company that is recognized by Profit 100 as one of the fastest growing technology companies in North America. In 2013, Robert won the prestigious Canadian “Entrepreneur of the Year Award” for Technology and was presented with the Queen’s Jubilee Award for outstanding service. Robert demonstrates his entrepreneurial expertise through his leading role on the Emmy nominated, hit American TV show, Shark Tank, and now in its 5th season on ABC (produced by Mark Burnett Productions). His inspiring books, “Driven” and “The Will to Win”, were simultaneously Top 10 Bestsellers that earned him the title of “Best Selling Author”. Robert’s motivational business advice has received millions of impressions through TV, print, radio and digital media. To Robert, running a business is a lot like one of his greatest passions, racing cars. He believes, “You have to stay LASER-FOCUSED when driving a car over 200 miles an hour, similar to growing a business in today’s world of rapidly changing technology.” For the past three years, Robert has competed as Ferrari #007 for The Herjavec Group Racing in the North American Ferrari Challenge Series including winning, “Rookie of the Year 2011.”
Registration
In order to register, please contact your Info-Tech Account Manager or: Steph Brouillette Events Planner [email protected] Marcel Van Hulle Senior Vice President - Sales [email protected] Please note that this meeting is reserved for the senior-most HR or IT professional at your organization.
Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2014 Info-Tech Research Group Inc.
Info-Tech Research Group
1
Executive Summary
Info-Tech Research Group
2
Executive Summary What Info-Tech learned from CIOs:
The number of surveyed IT leaders who agree that market expansion and business growth will be the top business priority this year.
Recently, the global economic climate had been characterized by sluggish growth and slow economic recovery from the recent recession.
In an effort to reduce costs and stay competitive, many organizations withheld IT spending. As a result, IT departments are playing catch up with technology.
40%+
This growth will be driven by exploiting new technology and innovations that enable product and service differentiation, as well as improving efficiency to translate top line growth into bottom line profitability.
However, IT departments are still left with symptoms of resource and staffing shortages from the recession. This year, we interviewed over 300 IT executives from all over the world, and our results show optimistic business sentiments, and increasing expectation of economic growth.
Info-Tech Research Group
3
Executive Summary continued
IT leaders are more likely to view their departments as Proactive Operator (52%) focused on working with the business to improve efficiency and optimize processes, rather than as Reactive Firefighter (25%) spending most of the time fixing problems.
A significant percent of respondents even believed their departments meet the classification of Strategic Innovator (23%) with a focus on transforming the business through IT innovations.
The most prevalent challenge is HR related – finding and retaining talent, and updating skills in support of new technologies. Other key challenges for IT departments are combating resource limitations, and developing better alignment and communications with key business stakeholders.
The top IT priority is improving core IT capabilities, followed by supporting business expansion, and improvements in operational efficiency. As IT departments grow in capability, however, they face increasing difficulty supporting the renewed business priorities.
Info-Tech Research Group
4
Question #1: How do you view the IT function in your organization?
Info-Tech Research Group
5
52% of surveyed IT leaders believe their departments are Proactive Operators
CHANGING ATTITUDES OF IT DEPARTMENTS The perception that the capability of the IT department is increasing suggests that CIOs have turned the corner in their belief that IT’s role has expanded, and has the potential to play an increasingly important role in enabling future business strategies.
25% of IT departments still view Reactive Firefighter
themselves as reactive fire fighters Get the fundamentals right and keep the business happy
52% of IT departments view Proactive Operator
themselves as proactive operators
Optimize business process, support business functions and operational efficiencies
23% of IT departments view Strategic Innovator
themselves as strategic innovators Leverage technology to enable business expansion and define new industry frontiers Info-Tech Research Group
6
The IT leader’s perception of the capability of the IT department differs by industry IT leaders in healthcare, education and industrials are more likely to classify their IT departments as Reactive Firefighters while those in Technology & Telecommunication and Government & Public Services are more likely to classify their IT departments as Strategic Innovators. Reactive
Proactive
Innovative
H E AL T H C AR E
35%
E D U C AT I O N
35%
41%
24%
I N D U S T R I AL S
33%
44%
22%
F I N AN C I AL S
24%
C O N S U M E R D I S C R E T I O N AR Y
22%
P R O F E S S I O N AL , S C I E N T I F I C & T E C H N I C AL S E R V I C E S TECHNOLOGY & T E L E C O M M U N I C AT I O N
18%
GOVERNMENT & PUBLIC SERVICES
19%
E N E R G Y, M AT E R I AL & U T I L I T I E S Average Capability Level
47%
56%
13%
63% 41%
17% 41%
51%
31%
74% 25%
20%
65%
20%
11%
18%
52%
16% 23%
Info-Tech Research Group
7
IT budget and size of organization do not drive capability maturity level Indeed, IT leaders from larger organizations and those with larger IT budgets are less likely to think of their IT departments as Strategic Innovator. The complexity involved in operating a large IT department appears to leave less room to focus on IT innovations.
IT Capability Maturity by Size of IT Budget
IT Capability Maturity by Size of Organization (# of FTEs)
70%
61% 61%
60%
57%
51%
48% 50%
50%
52%
52%
46% 40%
40% 32% 30%
28% 25% 25%
31%32%
27% 24%
23%
20%
21% 15% 16%
23% 16%16%
16% 8%
10% 0% Reactive Firefighter Less than $5M
Proactive Operator $5-15M
$15-50M
Strategic Innovator
Reactive Firefighter
$50M+
Less than 249
Proactive Operator 250-999
1000-4999
Strategic Innovator 5000-9999
Info-Tech Research Group
10000+
8
Question #2: How do senior leaders in your organization view the IT function?
Info-Tech Research Group
9
IT leaders believe that the senior business leaders in their organizations view IT as being somewhat less innovative and more reactive than they do 30% of those surveyed believe there is a discrepancy between the IT department and the business’ view of IT’s capability level. This perceptual difference speaks to relationship gaps, and the challenge that IT leaders face in communicating the business value of IT. How IT Thinks Business Views IT
How IT Views Themselves
Reactive Firefighter 31%
Proactive Operator 53%
Reactive Firefighter 25%
Strategic Innovator 16%
Proactive Operator 52%
Strategic Innovator 23%
9%
30% 17%
17% of IT leaders think the business views IT lower than do the IT leaders
30% of IT leaders think the business views IT differently than do the IT leaders
9% 9%
of IT leaders think the business views IT as higher than do the IT leaders
70%
Business View Unknown 4% IT thinks business view aligns with IT’s view 70%
Info-Tech Research Group
10
Industry analysis shows some significant differences in how IT leaders think senior business leaders view their IT departments • IT leaders in Education believe that the business views IT as far less reactive (16% less reactive) than the IT leaders do
• IT leaders in Industrials, Technology &Telecommunications and Energy, Materials & Utilities believe that the business views IT as far less innovative (14%, 15% and 12%, respectively) than the IT leaders do
HEALTHCARE
EDUCATION
16%
38%
+
34% INDUSTRIALS
-
FINANCIALS
CONSUMER DISCRETIONARY
TECHNOLOGY & TELECOMMUNICATION
GOVERNMENT & PUBLIC SERVICES
ENERGY, MATERIAL & UTILITIES
+
-
9%
14% 23%
-
8%
11% 19%
22%
43%
13%
65%
+
14%
13%
-
48%
21%
7%
62%
+
10%
20%
30%
+ 6%
+ 6%
10% 17%
-
15%
25%
40%
18%
12%
19%
56%
22%
12%
44%
56%
22%
18%
19%
43%
25%
20%
16%
34%
2%
21% PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES
13%
44%
9%
34% 23%
3%
45%
-
22%
-
39%
6%
39%
• And IT leaders in Consumer Discretionary and Professional, Scientific & Technical Services believe that the business views IT as more reactive (22% and 14%, respectively) that the IT leaders do
+
39%
40% 45%
-
8%
23%
51%
31% 65%
71%
-
12% 18%
IT Leaders’ Assessment
Info-Tech Research Group
11
Question #3: What are your top strategic technology projects planned for the coming year?
Info-Tech Research Group
12
With the economic recovery underway, there is a renewed focus on improving core IT capabilities and supporting business expansion Core IT Capabilities 1 Infrastructure 41%
2 Core Apps 34%
TOP 10 IT PROJECTS % of respondents planning/implementing in the next year Almost two in every five IT leaders are planning to strengthen and upgrade their IT infrastructure in the coming year; and one-third of IT leaders will focus on improving the core technology capabilities and supporting business expansion.
3 Support Business Expansion
32%
6 Interactive 21%
7 ECM 17%
4 BI 29%
Mobile 25%
8 ERP 17%
5
9 CRM 17%
10 Security 17%
Refer to the Appendix for a mapping of IT projects to categories. Info-Tech Research Group
13
While analysis by capability maturity level shows some differences in priorities, infrastructure, core technology, and business expansion projects are within the top four at all levels BI initiatives are also under consideration by Proactive Operators and Strategic Innovators. Cloud projects are more of a focus of Reactive Firefighters, who may be later to adopt Cloud than the others, or may see it as a means to escape firefighting.
Reactive Firefighter Infrastructure
50%
Expansion
38%
Mobile
26%
Core Tech
24%
BI
23%
Cloud
20%
Proactive Operator
Strategic Innovator Infrastructure
40%
Infrastructure
37%
Core Tech
40%
Core Tech
35%
Expansion
34%
BI
30%
BI
31%
Expansion
29%
Interactive
27%
Mobile
28%
ECM
21%
Security
22%
ERP
22%
Interactive
21%
In general, IT departments of all maturity levels are working on similar projects.
Info-Tech Research Group
14
Question #4. Select your top business partners within the organization and rank in order of importance.
Info-Tech Research Group
15
IT is increasingly aligning itself with organizational functions that drive revenue and/or facilitate service delivery IT departments are increasingly becoming key business enablers to Corporate Oversight and Core Business Operations after a long history of focusing on Support Services, such as Finance. Core Business Operations
Corporate Oversight
Strategy Governance and Management
30% 16% 22% 30%
#1 Business Partner
#1 Business Partner by % of respondents
#2 Business Partner
14%
30%
Support Services
Finance HR Legal Business Intelligence Supply Chain Risk, Compliance& Audit
11%
45%
16%
11%
14%
#2 Business Partner
31%
28%
#3 Business Partner
36%
#4 Business Partner
#2 Business Partner #3 Business Partner #4 Business Partner
Business Support Operations
28% 33%
#1 Business Partner
Product Development Back Office Operations Sales & Marketing
14%
#1 Business Partner
45% 25%
#3 Business Partner #4 Business Partner
Front Office Operations Channel Delivery Client Facing Sales Product Management
19%
#1 Business Partner #2 Business Partner #3 Business Partner #4 Business Partner
Info-Tech Research Group
16
IT departments in industries characterized by high regulation and compliance have an even stronger alignment with Corporate Oversight
Core Operations
Technology & Telecommunication
Consumer Discretionary
15%
47%
10%
39%
Industrials
33%
Healthcare
32%
% selected as #1 Business Partner
17%
50%
Energy, Material & Utilities
Education
17%
52%
Financials
11%
45%
17% 4%
31%
15%
29%
28% 39%
19%
35%
6%
14%
10% 26%
4%
11%
13% 19%
16%
22%
17%
28%
Oversight
16%
55%
Government & Public Services
IT has a stronger alignment with Corporate Oversight
Services
68%
Professional, Scientific & Technical Services IT has a stronger alignment with Core Business Operations
Support Operations
47%
11%
30%
Info-Tech Research Group
17
There was a difference in the selection and prioritization of business partners by size of organization IT leaders in smaller and mid-size organizations were more likely to choose Core Business Operations as their top business partner.
Info-Tech Research Group
18
Question #5: How are innovations in technology affecting your role as IT leader?
Info-Tech Research Group
19
The role of the IT leader appears to be highly affected by demand from the business for innovative technology solutions Coupled with the effort of keeping up with technology innovation, and the increasing opportunity for the business to work directly with vendors, the role of the IT leader is becoming increasingly challenging. Strongly Affected
Business is demanding innovative technology solutions
Slightly Affected
45%
IT innovations are helping improve quality of service
31%
Business demands require IT be up to date with new technology and its ability to drive business value
29%
IT is having difficulty keeping up with technology innovation
18%
New innovations are helping drive down IT cost
17%
Vendors are approaching business directly to sell solutions
15%
Business is purchasing technology solutions without IT
15%
IT is seen as a barrier by the business to using innovative technologies
Affected
8%
Not Affected
41% 55% 49%
32%
48%
11%
3%
6%
9%
30%
33%
26%
2%
16%
41%
26%
11%
41% 44% 43%
5% 10% 15% 22%
Info-Tech Research Group
20
The extent to which innovations in technology affect the role of the IT leader varies by the size of IT department and the size of the organization
IT leaders of larger IT departments are more likely to report that they are affected by demand for innovative technology solutions from the business.
Strongly Affected
Affected Less than 50
IT leaders in larger organizations are less likely to respond that technology innovations help improve quality of service.
51-100
101-300
300+
1000+
Strongly Affected Affected
Less than 249
250-999
1000-4999
5000+
10000+
Affected
IT leaders in larger organizations are more likely to be affected by vendors directly approaching the business to sell solutions.
Minimally Affected Less than 249
250-999
1000-4999
5000+
10000+
Info-Tech Research Group
21
Question #6: List the top three ways you believe the IT organization adds value to the business overall.
Info-Tech Research Group
22
There was not strong consensus among IT leaders on how the IT department adds value to the business
52% 48% 47% 40% 29% 20% 20%
17% 12% 9%
think IT improves Quality Of Service
THE VALUE ADD think IT facilitates Integration Across the Organization think IT lowers Total Cost of Operations think IT improves Collaboration think IT improves Insights Into Customers, Sales and Performance Through Analytics think IT facilitates Innovation think IT assists In Driving Sales and Revenue think IT Facilitates Product Delivery
Though 45% of IT leaders agree that “Core Business Operations” is the most important business partner for IT, only 20% believe that IT adds value by assisting in driving sales and revenue, and only 17% believe that IT adds value by facilitating product delivery.
think IT mitigates Costs think IT improves Time to Market Info-Tech Research Group
23
IT leaders with larger budgets are more likely to report that IT adds value to the business by “improving insights into customers, sales and performance through analytics” …and less likely to report that IT adds value to the business by “improving quality of service”. Top Three Ways IT Adds Value to Business: Enterprise Organizations (over 10,000 FTE)
Size of IT Budget by % Respondents 80%
Improving quality of service
1. 2. 3.
60%
Lowers total cost of operations Improves collaboration Facilitates integration across organizations
40%
Top Three Ways IT Adds Value to Business: Large IT Departments ( over $50 million annual budget)
20% 0% Less than $5M
$5-15M
$15-50M
$50M+
1. 2. 3.
Improves insights into customer, sales and performance through analytics Lowers total cost of operations Facilitates integration across organizations
Info-Tech Research Group
24
Question #7: What are the five biggest challenges that are furthest away from resolution?
Info-Tech Research Group
25
The most often acknowledged unresolved challenge was HR related, such as staffing and retention For the most part, there was little difference by capability maturity level in the challenges that IT leaders face. 30%Top Challenges by % of Respondents
26% 25% 24%
HR Issues
22%
IT Alignment with Business & Other Partners
Challenges: Common to all Capability Maturity Levels • • • • • • •
HR Issues Budget &Resource Limitations IT Alignment with Business & Other Partners Integration Increase Efficiency Process Improvement Governance, Risk and Compliance Challenges: Innovator Level
Budget & Resource Limitations
20% Adapting to Changes in Technology Governance, Risk and Compliance
15% 14%
Increase Efficiency Integration
12% 11% 10% 10%
Big Data & BI Process Improvement Legacy Systems, Applications and Infrastructure Upgrade
• Big Data & BI 16% • Legacy Applications/Infrastructure Upgrade 12% • Adapting to Technology Change 10% • Mobility & BYOD 9% Challenges: Proactive Level • Adapting to Technology Change 17% • Demand & Priorities Management 13% • Big Data & BI 11%
Challenges: Reactive Level
• Mobility & BYOD 13% • ITSM 13% • IT Strategy 12% • Legacy Applications/Infrastructures Upgrade 11%
5% 0.9
1
1.1 1.2 1.3 1.4 1.5
Info-Tech Research Group
26
Question #8: How do you reconcile IT spending with business value?
Info-Tech Research Group
27
Only one-third of IT leaders report that IT costs are allocated back to the business At the Strategic Innovator level, more IT departments allocate all costs back to the business. In addition, more Strategic Innovators use methods other than allocating by lump sum or by discrete IT services rendered.
Info-Tech Research Group
28
The likelihood of IT costs being charged back to the business increases with the size of the IT budget For IT departments with budget exceeding $50 million, the majority allocate all costs back to the business by some means. IT budget reallocation by size of IT budget Less than $5M
$5-15M
$15-50M
$50M+
50% 43%
51%
41% 40% 35%
35% 31%
29%
28%
30% 22% 20%
17%
13%
13% 10%
17%
16%
9%
11%
10%
9%
7%
7%
6%
0%
IT does not allocate IT allocates some, but IT allocates lump sum IT allocates costs costs back to business not all costs costs back to business based on discrete IT units services rendered
IT uses alternative method of cost reconsiliation
Info-Tech Research Group
29
Question #9: What are the top business priorities for your organization?
Info-Tech Research Group
30
Though respondents indicated that market growth and expansion is the business’s top priority, supporting business expansion was third in IT’s top projects Communicating to the business the role of infrastructure projects and core technology improvements in facilitating market growth will be key to alleviating any doubt regarding alignment between IT and the business.
Top Business Priorities by % of Respondents 0%
10%
#1 Market Growth & Business Expansion
20%
40% 36%
#2 Technology & Innovation
30%
IT Top Projects Top 5
40%
#1 Infrastructure #1 HR Issues #2 Core Technology Improvements
#3 Increase Operational Efficiency
27%
#3 Supporting Business Expansion
#4 Improve Customer Service/Product Quality
26%
#4 BI
#5 Governance Risk and Compliance
11%
#5 Mobile
Info-Tech Research Group
31
Moreover, IT may find it difficult to support the business’s priorities to any great extent until it addresses its own challenges… …including the challenge related to alignment with the business and other partners.
IT Top Challenges
Top Business Priorities by % of Respondents
Top 5 0%
#1 HR Issues #2 Limited Budget & Resources #3 IT Alignment with Business & Other Partners #4 Adapting to Changes in Technology #5 Governance, Risk & Compliance
10%
20%
#1 Market Growth & Business Expansion
40%
40%
#2 Technology & Innovation
36%
#3 Increase Operational Efficiency
27%
#4 Improve Customer Service/Product Quality
26%
#5 Governance Risk and Compliance
30%
11%
Info-Tech Research Group
32
Appendix
Industry Breakdown Survey Demographics Survey Questions IT Projects Categorized
Info-Tech Research Group
33
More than 300 IT leaders completed the survey
10 Industries* Government & Public Services
314 Survey Responses from IT leaders Online -19 Interviews with Influential IT Executives
75 Responses
Financial Services and Insurance 54 Responses
Industrials Manufacturing & Construction 37 Responses
Healthcare
Education
34 Responses
32 Responses
Professional, Scientific & Technical Services
Consumer Discretionary 23 Responses
Technology & Telecommunication
22 Responses
30 Responses
Energy, Material & Utilities 20 Responses
* Two organizations that operate across a range of diversified industries were categorized as “Others”
Info-Tech Research Group
34
The majority of respondents are from organizations with fewer than 5,000 employees, and fewer than 50 people in IT Location
Size of IT Department 301-1000 6%
20% from
1000+ 4%
Canada
52% from the
28% from Rest
United States
of the World
101-300 15%
Less than 50 56% 51-100 19%
Global Organization Size (# FTE) 10000+ 14%
IT Budget (Including CAPEX and OPEX) $50M+ 10%
Less than 249 16% $15-50M 15%
5000-10000 8%
Less than $5M 37%
250-999 26%
1000-4999 36%
$5-15M 38%
Info-Tech Research Group
35
CIO Outlook survey questions Classifying Questions
• Your Title • In which country are you located?
• How many employees are there in your organization globally?
• What is the size of your IT group including all subcontractors currently providing FTE services?
• In which industry do you work?
• What is the size of your IT budget including CAPEX and OPEX?
Survey Questions 1. How do you view the IT function in your organization? 2. How do senior leaders within your organization view the IT function? 3. What are your organization’s top strategic technology projects planned for the coming year?
4. Select your top business partners within the organization and rank in order of importance. 5. How are innovations in technology affecting your role as IT leader? 6. List the top three ways you believe the IT organization adds value to the business overall. 7. What are your five biggest challenges that are furthest away from resolution? 8. How do you reconcile IT spending with business value? 9. What are the top five business priorities for your organization? Info-Tech Research Group
36
After reviewing over 2000 responses from surveyed respondents, the following categories were applied to better analyze data IT Projects Mapping Long Name
Short Name
Business Intelligence Implementation or Improvement Business Process Improvement / Business Process Management Cloud Deployment or Upgrade (SaaS, IaaS, PaaS) Business Consolidation Core Business Technology Implementation or Upgrade CRM Implementation or Upgrade Client-facing Technology Implementation or Improvement (excl. Interactive / Digital) Enterprise Architecture Information Management Implementation or Improvement (includes ECM) Efficiency and Optimization (Cost and Resource) ERP Implementation or Upgrade Business Expansion or Transformation (includes M&A) GIS Implementation or Improvement Governance, Risk, and Compliance Initiative HRIS Implementation or Improvement IT Infrastructure Improvements Interactive / Digital Channel Implementation or Improvement IT Governance or IT Process Improvement IT Strategy (includes infrastructure, or app strategy) ITO / BPO Planning and Migration ITSM or ITIL Mobile-specific Initiative No Project Identified Other Project Type Project Management Methodology/Improvement Social Media specific Initiative Virtualization Security BCP/DRP
BI BPI/BPM Cloud Consolidation Core Tech CRM Cx Tech EA ECM Efficiency ERP Business Expansion GIS GRC HRIS Infrastructure Interactive IT Governance IT Strategy ITO/BPO ITSM Mobile No Proj Other PM Social Virtual Security BCP/DRP
Strategic Business Projects IT Focused Projects
Info-Tech Research Group
37
Info-Tech will not assume responsibility or liability for damages or losses suffered by anyone as a result of circulation, publication, reproduction or use of this document contrary to this disclaimer. Information in this document is based on the scope of this strategy and limitations set out therein. © 2014 Info-Tech Research Group Inc, a Canadian Corporation and its associated firms Info-Tech Research Group International and McLean & Co. All rights reserved. Printed in Canada.
The Info-Tech name, logo are registered trademarks or trademarks of Info-Tech Research Group.
Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2014 Info-Tech Research Group Inc.
Info-Tech Research Group
38
Signature Canada 2014 Leadership Paradox: Why High Performing CIOs and CHROs Don’t Become CEO Special Invitation for Leading CHROs and CIOs
November 18th - 20th, 2014 Co-hosted by David Nicholl, CCIO for the Province of Ontario Toronto, Canada Info-Tech Research Group Head Office Historic Masonic Temple 888 Yonge Street
Letter of Invitation We are writing you today to invite you to a special event we will be holding for a select group of Chief Information Officers and Chief Human Resource Officers from large enterprises. Signature Canada will bring together HR and IT leaders for a rich discussion on the “Leadership Paradox: Why High Performing CIOs and CHROs Don’t Become CEO.” Let us provide you with some background on why we’d like you to join us. Over the last twenty years, IT and HR have transformed from administrative functions to some of the most important strategic assets to an organization. High performing CHROs and CIOs have built world-class departments and wield more influence than ever over the corporate agenda. Yet despite their exemplary performance, Info-Tech and McLean & Company’s recent study found that virtually no CHROs or CIOs ever become CEO. In fact, their study found that many of the practices that exemplify IT and HR excellence have come to impede the performance of CHRO and CIO. By contrast, Finance has adopted many practices that have led the CFO to become the most likely successor to the CEO.
Source: Leading CEOs: A Statistical Snapshot of S&P 500 Leaders (SpencerStuart)
Just as importantly, this pattern isn’t just about your success and advancement, but in fact those same behaviors that impede your progress also compromise the value that your department can deliver. Our two-and-a-half day event will examine the current state of affairs and explore how you can build an organization that is reactive and agile. We will highlight where organizations are and where organizations need to be around three key themes: technology, leadership and the ability to transform your organization. We will be holding the Signature Canada Event on November 18th - 20th, 2014. We hope you can join us for what promises to be a great week. Sincerely, David Nicholl, CCIO Province of Ontario
Davin Juusola, SVP McLean & Company
Tentative Agenda
November 18th 3:00 PM
Registration and Tours of Historic Masonic Temple
7:30 PM
Featured Keynote Business Leadership & Technology Innovation Robert Herjavec, Founder & CEO of The Herjavec Group
November 19th 8:00 AM
Breakfast
9:00 AM
Opening Keynote Obstacles to Becoming the CEO and How IT & HR Can Overcome Them
10:45 AM
Panel Discussion How Building a World Class Department Can Create a Ceiling for the CxO and Team
12:00 PM
Lunch
1:00 PM
Breakout Sessions CIOs: Creating the Technology Enabled Enterprise of the Future Tomorrow’s CIOs: Holistic Data Management Workshop – Part 1 CHROs and Tomorrow’s CHROs: Innovative Practices in Stakeholder Management
2:30 PM
Breakout Sessions CHROs & CIOs: Building Processes that Unleash Organizational Transformation Tomorrow’s CIOs: Holistic Data Management Workshop – Part 2 Tomorrow’s CHROs: Leveraging Employee Input to Improve Employee Engagement
4:00 PM
End of Day
5:00 PM
Cocktails
6:00 PM
Awards Dinner
Tentative Agenda November 20thth 8:00 AM
Breakfast
9:00 AM
Keynote How the World is Changing
10:00 AM
Panel Discussion What the Future Holds for IT and HR
11:00 AM
Breakout Sessions CIOs: Current State: IT Benchmarking by the Numbers CHROs: Current State: HR Benchmarking by the Numbers Tomorrows CIOs: High Impact Leadership – Effectively Influence Organizational Stakeholders Tomorrows CHROs: High Impact Leadership – Effectively Influence Organizational Stakeholders
12:30 PM
Networking Lunch & Info-Tech Member Update
1:30 PM
Breakout Sessions CIOs: Future State: Key IT Trends for 2015 CHROs: Future State: Key HR Trends for 2015 Tomorrows CIOs: High Impact Leadership – Effectively Influence Organizational Stakeholders Tomorrows CHROs: High Impact Leadership – Effectively Influence Organizational Stakeholders
3:00 PM
Adjourn
Testimonials
“Stimulating day with bright people. What could be better?” Dave Burritt Chief Financial Officer US Steel
“Good discussion, great venue, interesting research and topic” Julie Taylor Chief Human Resources Officer PALL Corp
“Amazing group of people & leaders. True value in discussions and interactions today.” Kurt Steege Chief Information Officer McAndrews Forbes Holdings
“Interaction and variety of perspective valuable…allowed for contribution.” Jim Stikeleather Chief Innovation Officer Dell
“Clearly, this session delivered on its promise.” Gloria Santona General Counsel McDonalds
Invited Organizations
Biography of Co-Host David Nicholl was formally appointed corporate chief information and information technology officer in November 2008. He was acting as the corporate chief information and information technology officer since May 2008. Prior to that, he held the position of corporate chief of infrastructure technology services, within the Ministry of Government and Consumer Services, since 2006. He was responsible for leading the establishment of the Government’s new infrastructure technology services organization (TCS), establishing its business and service delivery model; and implementing key e-Ontario infrastructure consolidation projects. Prior to joining ITS, David was the CIO at the Transportation I&IT Cluster (TC). David joined the TC in 2002, returning to the Ontario government where he worked as a programmer/analyst during the early 1980s. Previous to the TC, David worked at Oasis Technology — a leading global provider of Unix/NT-based ePayment systems to card associations and financial institutions - where he was SVP of global consulting and delivery. In this role, he was responsible for the delivery of the company’s products to new customers and for the support and training of Oasis’s approximately 150 clients in 70 countries. David also spent seven years in Bermuda and the United Kingdom where he worked for HSBC (Bank of Bermuda) as VP and director of IT. His responsibilities included the creation of a new IT strategy to support the introduction of an electronic servicing capability for the bank’s global customer base; the development of a resources plan to reduce IT operating costs, and the development and support of all business applications in a 7/24 environment. Previously, David worked at the Toronto Dominion Bank as a systems/project manager.
Biography of Keynote Speaker
Robert Herjavec is one of North America's most recognizable business leaders. A first generation immigrant, Robert, age 8, arrived in Halifax, Canada on a boat with his parents after escaping Communism in the former Yugoslavia. From delivering newspapers and waiting on tables, to launching a computer company from his basement, his unlimited dreams led him to experience the classic “rags to riches” immigrant story. A dynamic entrepreneur, Robert has built and sold several IT companies to major players including AT&T and Nokia, on his way to amassing a personal fortune. Following a short retirement, Robert recently launched, The Herjavec Group (THG), a $125 million managed security company that is recognized by Profit 100 as one of the fastest growing technology companies in North America. In 2013, Robert won the prestigious Canadian “Entrepreneur of the Year Award” for Technology and was presented with the Queen’s Jubilee Award for outstanding service. Robert demonstrates his entrepreneurial expertise through his leading role on the Emmy nominated, hit American TV show, Shark Tank, and now in its 5th season on ABC (produced by Mark Burnett Productions). His inspiring books, “Driven” and “The Will to Win”, were simultaneously Top 10 Bestsellers that earned him the title of “Best Selling Author”. Robert’s motivational business advice has received millions of impressions through TV, print, radio and digital media. To Robert, running a business is a lot like one of his greatest passions, racing cars. He believes, “You have to stay LASER-FOCUSED when driving a car over 200 miles an hour, similar to growing a business in today’s world of rapidly changing technology.” For the past three years, Robert has competed as Ferrari #007 for The Herjavec Group Racing in the North American Ferrari Challenge Series including winning, “Rookie of the Year 2011.”
Registration
In order to register, please contact your Info-Tech Account Manager or: Steph Brouillette Events Planner [email protected] Marcel Van Hulle Senior Vice President - Sales [email protected] Please note that this meeting is reserved for the senior-most HR or IT professional at your organization.
