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Logicalis 2017-18

Global CIO Survey

Simplify, secure and engage

CIOs say massive infrastructure overhaul must be coupled with culture change if organisations are to unlock the benefits of digital transformation.

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Big picture:

Digital transformation

Progress, barriers and keeping the lights on – CIOs as change makers, not change managers

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Just 5%

classify their organisations as ‘digital innovators’

19%

see their organisations as early adopters

49%

characterise themselves as part of an early majority

23%

say are they are part of the late majority

On a scale from 1 to 5, where 1 is ‘entirely enabled’ and 5 is ‘not enabled at all’, rate the extent to which you feel your organisation is ‘digitally enabled’?

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5%

of CIOs see their organisations as 'digital innovators'

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19%

see their organisations as early adopters

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49%

characterise themselves as part of an early majority

CIOs point to complexity, cost, culture, skills and security as the main barriers to digital transformation.

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44%

of CIOs believe complex legacy technology is the main barrier to digital transformation

In an ever-evolving threat landscape, security concerns have a disproportionate impact on IT innovation.

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A third of CIOs admit that security issues had seen IT projects cancelled or halted.

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Ransomware and corporate extortion will be the biggest threat over the next 12 months.

Security concerns, amplified by local data regulations, are also hampering efforts to streamline IT through cloud services adoption

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Only 23%

of respondents in the US cited local data regulations as a barrier to using cloud services

A third

of respondents in LATAM cited local data regulations as a barrier to using cloud services

55%

of respondents in Europe cited local data regulations as a barrier to using cloud services

41%

of respondents in Asia cited local data regulations as a barrier to using cloud services

30%

of respondents in Australia cited local data regulations as a barrier to using cloud services

Respondents citing local data regulations as a barrier to using cloud services

What are the biggest challenges facing organisations, related to the increased use of using cloud services?

70%

Security

45%

Data sovereignty

40%

Local data regulations

31%

Skills within IT operations

All this means CIOs are still spending too much time focused on keeping the lights on. There is precious little time for strategy.

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25%

of CIOs outsource most of their IT (more than 50% outsourced), but the bulk of IT remains in-house

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70%

in 2013, most CIOs wanted to focus 70% of their time on strategic initiatives

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60-80%

majority of CIOs spend 60-80% of their time on day to day IT management

If CIOs are to deliver digital transformation they must be change makers, not change managers - and they have big plans to be just that.

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51%

of CIOs plan to replace and/or adapt existing infrastructure and attempt culture change

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33%

just 33% expect to increase digital transformation budgets.

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4%

only 4% of CIOs plan to do nothing

In focus: Apps,

IOT and analytics

Islands of digital enablement fail to deliver the big benefits that come with wholesale transformation

Progress towards full digital enablement may be slow, but CIOs are delivering new, digital services and capabilities

What function do organisations target when developing their apps?

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57%

Internal applications for streamlining existing business processes

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48%

Building new service revenues through new applications

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40%

Moving an existing product or service to an application experience

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19%

Marketing activity to promote a product or service

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24%

The IoT is already a reality for a quarter of CIOs (24%), up from 19% in 2016.

However, the lack of overarching strategy means they are worthy, but piecemeal developments.

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63%

In 2015, 63% of CIOs ranked analytics as very important or critical in driving business innovation

CIOs cite familiar barriers to analytics delivery in 2017

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55%

Complexity

40%

Siloed Data

41%

The lack of a clear brief from the business

38%

The lack of available skills

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55%

Complexity

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40%

Siloed Data

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41%

The lack of a clear brief from the business

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38%

The lack of available skills

What are CIOs doing to address these barriers?

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54%

are working with line of business colleagues to understand their needs

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39%

are addressing data challenges

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38%

are setting up working groups to unravel complexity

Conclusion

We are living in an exciting period of technological change: A digital revolution that promises massive benefits for businesses and individuals.

Digital technologies are changing everything - change that will only accelerate.  Right now, Uber is built on a digitally-enabled business model, but before we know it, autonomous vehicles will change the very nature of travel.

As digital pioneers CIOs will be change makers, not change managers and, as this year’s CIO Survey demonstrates, the race to take on that role is underway. CIOs are adapting to the ubiquity of shadow IT, addressing the barriers created by legacy IT and seeking to take control of change.

But they are also realistic. They understand the scale of the digital transformation challenge and they are prepared to look outside for help - to trusted partners able to both take on the heavy lifting of day to day IT and to simplify technology in creating environments in which digital enablement can flourish.

At Logicalis, we see ourselves as ‘architects of change’ delivering real-world solutions, services and analytics – we stand ready to support CIOs to turn their digital ambitions into reality.

Indeed, we are already working with a range of organisations to deliver the services they need to derive new revenue and realise process efficiencies – securely.

Our work supporting digital transformation is diverse, but it is shaped by a single minded vision: Technology must be an asset for businesses, not a problem. It must help to make our complex, fast-changing world a simpler, more inspiring place to live, work and grow. 

To find out more about our vision for digital business, and the work we are doing to deliver it, download our Annual Review or visit our website.