TI Trends for 2011: CIO Agenda and more

Ione de Almeida Coco

Regional VP Executive Programs

Comit de CIOs

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Agenda
1. CIO's Priorities for 2011 Business, IT Strategies and Technology -WW and Brazil
Source: CIO Agenda 2011

2. 2010 and 2011 IT Costs Forecast

Source: IT Key Metrics Data 2011

3. IT Mega-Trends
Source: Top 10 Strategic Technology Trends for 2011

About the 2011 Gartner Executive Programs CIO Survey

Annual survey since 2000the largest of its kind In 2011, 2,014 enterprises responded, being 40 from Brazil, representing more than $160 billion in IT spend and covering all major industries and geographies Average enterprise has an IT budget of $79 million Survey conducted from September to December 2010 Survey focused on five hypotheses concerning:
- IT's strategic relevance - Benefits realization - IT skill building - CIO personal influence/authority - Levels of digitization
2

Agenda
1. CIO's Priorities for 2011 Business, IT Strategies and Technology -WW and Brazil
Source: CIO Agenda 2011

2. 2010 and 2011 IT Costs Forecast

Source: IT Key Metrics Data 2011

3. IT Mega-Trends
Source: Top 10 Strategic Technology Trends for 2011

Global business strategies place a new emphasis on growth

2011 Top 10 Business Priorities Country - Brazil

Country= Brazil

Top 10 Business Priorities 2011

Please indicate the top three business priorities for your enterprise/business unit in 2011 Increasing enterprise grow th Creating new products, services and innovation Improving business processes Attracting and retaining new customers Reducing enterprise costs Improving operations Increased use of information/analytics Improving enterprise efficiency Improving technical infrastructure Attracting and retaining the w orkforce 1 2 3 4 5 6 7 8 9 10

Note: In the survey respondents identified their top three issues (not in any order). These priorities are ordered based on the percentage of respondents that included the issue in their top three.
5

Global CIO strategies focus on creating new infrastructures for growth and efficiency

2011 Top 10 CIO Strategic Priorities Country - Brazil

Country= Brazil

Top 10 CIO Strategies 2011

Please indicate the top three priorities that you expect to focus on in 2011 Developing or managing a flexible infrastructure Improving IT management and governance Delivering application and grow th projects Reducing the cost of IT Expanding the use of information/Intelligence Consolidating IT operations and resources Increasing IT innovation Implementing mobility solutions Applying shared services or outsourcing Improving/linking business--IT relationship 1 2 3 4 5 6 7 8 9 10

Note: In the survey respondents identified their top three issues (not in any order). These priorities are ordered based on the percentage of respondents that included the issue in their top three.
7

CIOs see business results and knowledge as their primary sources of success and influence. Country - Brazil
How connected are each of your IT strategies with your business strategic priorities?

Very Strong Connection Very Strong Connection

52%

Strong Strong Connection Connection

32%

Weak Connection Weak Connection

13%

Limited Connection Limited Connection

3%

No Connection No Connection

2%

0%

10%

20%

30%

40%

50%

60%

Percentage of all CIO IT Strategies

8

CIOs see their organizations pursuing non-differentiated business strategies

CIO technology priorities reflect a transformation in infrastructure

10

2011 Top 10 CIO Technology Priorities Country - Brazil

CIO Technology Priorities

Please indicate your top three priorities for 2011 IT management Mobile technologies Business Intelligence (BI) Cloud Computing SOA Virtualization Infrastructure Enterprise Resource Planning (ERP) Sourcing Technologies Web 2.0 / Social Media 1 2 3 4 5 6 7 8 9 10

Note: In the survey respondents identified their top three issues (not in any order). These priorities are ordered based on the percentage of respondents that included the issue in their top three.
11

CIOs anticipate making significant infrastructure and application moves over the next five years Country - Brazil
When do you estimate that your organization will support: 1) More than half of your transactions on a cloud infrastructure, and 2) More than half of your transactions by applications leased using leased in a software-as-a-service model (SaaS)?
60% 58% Cloud Infrastructure SaaS

20%

20% 18% 15%

8% 3%

2010

2011-2015
12

2016 -2020

Never

Agenda
1. CIO's Priorities for 2011 Business, IT Strategies and Technology -WW and Brazil
Source: CIO Agenda 2011

2. 2010 and 2011 IT Costs Forecast

Source: IT Key Metrics Data 2011

3. IT Mega-Trends
Source: Top 10 Strategic Technology Trends for 2011

Warning and Clarifications

IT Key Metrics Data should be used as a high level directional indicator and in the creation of planning assumptions and not viewed as an absolute benchmark. "IT Key Metrics Data: Key Industry Measures" looks at IT spending from a "cash view perspective. IT spend = OPEX (excluding depreciation and amortization) + CAPEX. Gartner publishes worldwide vertical industry-specific IT spending and staffing metrics, IT Key Metrics Data does not publish the metrics by Vertical industries within key geographic regions because previous research has shown that spending patterns are broadly similar by vertical market across regions. IT spend as a % of revenue in the IT Key Metrics Database is calculated on the basis of current year IT spend (budget) divided by the previous years stated revenue.

Benchmarking Costs: Choose the Right Level of Depth

Full Cost and Process Audit Detailed System Benchmarks High-Level IT Benchmarks

Basis FTE per 100 Concurrent Users

3000 2500 2000 1500 1000 500 0 A G D Peers C E B F New System Current

C O S T

Spending Surveys

Database

Example only - Source: Gartner Measurement

Technology deployment Enterprise behavior

Type B Enterprises Rational Risk-analyzer IT as business support

B
(70%) Type A Enterprises Aggressive Risk-taker IT as business transformation

Type C Enterprises Compliant Risk-averse IT as operational tool

C
(20%)

Number of enterprises High

A
(10%)

IT Adoption Rate

Low

Technology deployment Enterprise behavior in Latin America

Type A: 2.2 times IT Spend of type B

Technology deployment derives from external constraints, rather than from enterprise natural behavior.

3.5 times IT Spend of type C Type B: 1.6 times IT Spend of type C

B
(60%)

C
(35%)

Enterprise behavior must counter that trend to be able to compete effectively with their global counterparts

A
(5%)

ITKM Demographics: Key Industry Measures

Distribution by Industry 2010

ITKM Demographics: Key Industry Measures

Distribution by Region 2010 (LA 158 enterprises)

IT Spend as % of Revenue by Industry 2010

IT Spend as % of Revenue by Region 2010

Regionally, Latin America has increased significantly from 2.6% in 2009, LA Average is -9% than WW average 3.5%

IT Spend per Employee by Region 2010

Latin America saw a significant increase, rising from $6,567 in 2009 (15%).

IT Spend as % of Revenue vs. Operating Profit 2010

Forecast: Spend % Change by Industry 2010 2011

Forecast: IT Spend % Change by Region 2010 2011

Forecast: IT Spend as % of Revenue by Region 2011

LA - only 6% less than global average 3.3%

Forecast: IT Spend as % of Revenue by Industry 2011

Forecast: IT Spend per Employee by Industry 2011

Forecast: IT Spend per Employee by Region 2011 LA still 38% less than global average

Business Value Category Decision Tree

IT Spend to Run, Grow and Transform the Business by Region 2010

Agenda
1. CIO's Priorities for 2011 Business, IT Strategies and Technology -WW and Brazil
Source: CIO Agenda 2011

2. 2010 and 2011 IT Costs Forecast

Source: IT Key Metrics Data 2011

3. IT Mega-Trends
Source: Top 10 Strategic Technology Trends for 2011

Top 10 technologies for 2011

Which technologies or trends will drive significant change or disruption? User behavior and expectations, industry models and economics, technology markets and pricing Strategic Imperative: Companies should factor the top 10 technologies into their strategic planning process and make deliberate decisions about them during the next two years. This does not necessarily mean adoption and investment in all of the listed technologies.

Technologies You Can't Afford to Ignore Tablets Hot Near Term; Midterm Fabric, Context & UXP Impact Is Big Top 10 Strategic Technology Areas for 2010
1. 2. 3. 4. 5. 6. 7. 8. 9. Cloud Computing Advanced Analytics Client Computing IT for Green Reshaping the Data Center Social Computing Security Activity Monitoring Flash Memory Virtualization for Availability 1. 2. 3. 4. 5. 6. 7. 8. 9.

Top 10 Strategic Technology Areas for 2011

Cloud Computing Mobile Applications & Media Tablets Next-Generation Analytics Social Analytics Social Communications & Collaboration Video Context -Aware Computing Ubiquitous Computing Storage Class Memory

10. Mobile Applications

10. Fabric-Based Infrastructure and Computers

Modified for 2011 New for 2011 Dropped for 2011

2010: CIO Priorities / Top Strategic Technologies

CIO Agenda
1. 2. 3. 4. 5. 6. 7. 8. 9. Cloud Computing Virtualization Mobile Technologies IT Management BI Business Intelligence Networking, Voice & Data communication Enterprise Applications Collaboration Technologies Infrastructure

Top Strategic
1. Cloud Computing 2. Mobile Applications & Media Tablets 3. Next-Generation Analytics 4. Social Analytics 5. Social Communications & Collaboration 6. Video 7. Context -Aware Computing 8. Ubiquitous Computing 9. Storage Class Memory 10. Fabric-Based Infrastructure and Computers

10. Web 2.0

Recommendations
Look at Gartner CIO Agenda 2011 Top 10 to check if you are doing what your peers are doing Check your industry Key Metrics as high level directional indicator Are you evaluating if Strategic Technologies have any impact in your Business?

TI Trends for 2011: CIO Agenda and more

Comit de CIOs

Ione de Almeida Coco

Regional VP Executive Programs Ione.coco@gartner.com