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14 th CIO Workshop July 27th, 2001 CEO IT Survey Findings
1 © Accenture 2001 The CEO IT Survey The Singapore Tribe Has Spoken What Other Tribes Had Said Agenda
2 © Accenture 2001 The CEO IT Survey Objectives Survey Administration Survey Demographics The Singapore Tribe Has Spoken What Other Tribes Had Said Agenda
3 © Accenture 2001 The CEO IT Survey centers on the CIO Role and IT Practices Objectives assess To assess the organizational status of CIOs survey To survey CEOs views on the roles of CIOs examine To examine the desired profiles of CIOs identify To identify emerging IT Management Practices Key Objectives
4 © Accenture 2001 The survey was conducted for a period of approximately two months Survey Administration June 1 st Start Date: June 1 st July 25 th End Date: July 25 th 80 CEOs in Singapore Survey Sample: 80 CEOs in Singapore 31 Responses Received: 31 39% Response Rate: 39% Powered By: JustLogin.com
5 © Accenture 2001 In all, 13 industries were represented in the survey sample… Survey Demographics 26% Number of Companies% of Total Industry Electronics & High Tech Manufacturing Transport Financial & Business Services Government Telecommunications Commerce Others Energy Health Care Construction Media & Entertainment Social & Hospitality Services Total 8 13% 10% 6% 3% 0% 4 4 3 3 3 2 2 1 1 0 0 0 31100% 3%
6 © Accenture 2001 … which included organizations of various types Survey Demographics Corporate Profile of Survey Respondents SME 23.5% Large Domestic Enterprise 10% Local MNC 16.5% Foreign MNC 10% Statutory Board/ Government Body 36.5% Others 3.5%
7 © Accenture 2001 The CEO IT Survey The Singapore Tribe Has Spoken Key Findings The CIO Status The Role of the CIO The CIO Profile IT Management Practices What Other Tribes Had Said
8 © Accenture 2001 While our survey echoed certain findings of past research, it also presented interesting new findings Survey Response & Findings Key Findings Key Survey Findings qCIO Status – There is a significant elevation of the CIO status, signifying the strategic importance of IT as a corporate function qCIO Role – In addition to the CIOs role as a technology advocate, he/she has been asked to wear two other hats: those of strategy maker and external relationship builder qCIO Profile – Most CIOs were hired externally, with their selection (by CEOs) based overwhelmingly on their strong business orientation and good organizational skills qIT Management Practices – The majority of organizations has outsourced a part of their IT functions, and expresses a general satisfaction of the services received
9 © Accenture 2001 Survey Response & Findings The CIO Status In evaluating the general standing of CIOs in their organizations, we posed CEOs with the following questions Q. Do you agree that the CIO should report directly to the CEO as a member of the senior team? No. of Survey Respondents 0 0 2 7 22 04812162024 Strongly Disagree Disagree Neutral Agree Strongly Agree Q. Which of the following designations apply to the CIO equivalent executive in your organization? 19 0 1 5 6 0510152025 Chief Information Officer Chief Innovation Officer Chief Knowledge Officer Chief Technology Officer Director of Information Syst. No. of Survey Respondents
10 © Accenture 2001 The survey results indicate that the status of the CIO is rising with a larger group reporting to the CEO as a member of the senior team Survey Response & Findings The CIO Status * Source: CSC Index Research and Advisory Services, Foundation Report 109 New IS Leaders, 1997 ** Survey Results: Do you agree that the CIO should report directly to the CEO?- Strongly Agree responses Where CIOs Reported To (1997) * Others 21% CFO 23% CEO 33% COO 23% Where CIOs Should Report To (2001) ** CEO 71% Others 29%
11 © Accenture 2001 CIOs today are more influential as they enjoy a more visible executive role Survey Response & Findings The CIO Status Survey Findings qCIOs report to the Chief Executive – There is a visible trend in CIOs reporting to the CEO or COO rather than to the CFO- the tradition qCIOs are a part of the senior executive team – More CIOs are either on the board or on the executive committee at their respective organizations qStronger support for CIOs – Most CIOs now receive much stronger support from top management regarding corporate IT standards, enterprise-wide systems, and centralized IT policy making
12 © Accenture 2001 The majority of CIO equivalent job roles have also adopted the designation of Chief Information Officer… Survey Response & Findings The CIO Status CIO Equivalent Job Designations 61.5% 16% 19.5% Director of Information Systems Chief Information Officer Chief Technology Officer Others 3% In place of a CIO, some organizations have a senior executive with overall responsibility for IT and other operational activities It is also common for a Senior VP of Technology, and in some cases, the COO to perform the role of the CIO Other CIO Function Alternatives
13 © Accenture 2001 … though other designations have surfaced with the increased responsibilities associated with the CIO role Survey Response & Findings The CIO Status Survey Findings qCIOs as change agents – In other research * conducted, it was found that some CIOs are called Directors of Process Change. This designation is applied to some of them who have acquired change- related responsibilities such as overseeing the human resource function qCIOs as strategic planners– As the business role of the CIO expands, a few have had strategy in their title * Source: Harvard Business Review, Mar-Apr 2000, Are CIOs Obsolete?, Michael J. Earl
14 © Accenture 2001 We asked CEOs how they perceive the role of their CIOs Survey Response & Findings The Role of the CIO Q. What should be the responsibilities of the CIO? No. of Survey Respondents 84% 94% 6% 81% 0510152025 Technology Direction Setting System and App. Dev. Information Management Knowledge Management Others Disagree Q. Do you agree that the CIO should play a role in the formulation of business strategy? No. of Survey Respondents 0% 3% 39% 58% 0369121518 Strongly Disagree Neutral Agree Strongly Agree 30
15 © Accenture 2001 Although most CEOs expect their CIO to be a technology evaluator, they believe that he or she should also have operational and corporate planning responsibilities * Source: Accenture, Series on IT Management & Delivery (SITE), March 2000 Survey Response & Findings The Role of the CIO Survey Findings qTraditional Job Responsibilities Remain Intact – Data center operations, network uptime, help-desk service, and systems development are still the CIOs job qCIO Job Time Allocation – From a previous study conducted by Accenture *, the typical CIO allocates his time as follows: Technological Issues - 40% IT Professional and the IS Organization - 30% Business issues - 30% qCIOs play a part in Corporate Strategizing – Our survey results demonstrate that CIOs should have formal responsibilities for business strategy
16 © Accenture 2001 We also obtained the views of CEOs on whether the demands placed on CIOs have changed over the past 3-5 years Q. Do you agree that the CIOs technical planning responsibilities have expanded to include strategic planning? Q. Do you agree that CIOs should have business and financial skills in addition to technical expertise? Survey Response & Findings The Role of the CIO Survey Respondents (%) Q. Do you agree that the CIOs role has expanded to provide external customer support and communications? Yes 84% No 16% 71% 29% Yes No 74% 26% Yes No Survey Respondents (%)
17 © Accenture 2001 Survey Response & Findings The Role of the CIO Survey Findings qThe CIO role now requires an enlarged set of knowledge, skills and abilities – to include business principles and techniques of administration, organization, and management qCIOs are now an integral part of Merger and Venture Formation Committees – Two CEOs cited the important role their CIOs played in their organizations launch of new ventures or M&A activities. qCIOs have external roles – CIOs are becoming involved in official roles beyond their departments and organizations. In their role as technical advisor to customers, they act as a bridge between engineers and senior management of both organizations It is evident from the CEOs responses that CIO roles have expanded considerably as technology becomes a corporate enabler
18 © Accenture 2001 Survey Response & Findings The CIO Profile Q. Which of the following profiles best suggests your CIOs employment history? With respect to the recruitment of CIOs, CEOs are four times as likely to hire a candidate with a career track in IS than to hire one without No. of Survey Respondents 0% 54% 21% 25% 024681012 External Hire/ With Non-IS Background External Hire/ With IS Background Internal Promote/ With Non-IS Background Internal Promote/ With IS Background 14 16
19 © Accenture 2001 Survey Response & Findings The CIO Profile CEOs were asked to rate the relative importance of several attributes they might consider a CIO to possess Q. A CIO should have the ability to implement goals that focus on IT efficiency Q. A CIO should have a firm understanding of key IT issues and technologies No. of Survey Respondents 0% 29% 71% 04812162024 Strongly Disagree Disagree Neutral Agree Strongly Agree Strongly Disagree No. of Survey Respondents 0% 3% 0% 36% 61% 04812162024 Disagree Neutral Agree Strongly Agree
20 © Accenture 2001 Survey Response & Findings The CIO Profile Q. A CIO should have an understanding of business issues and the alignment of IT activities to business objectives Q. A CIO should have a vision of what IT needs to do and its purpose within the enterprise No. of Survey Respondents 0% 26% 74% 04812162024 Strongly Disagree Disagree Neutral Agree Strongly Agree No. of Survey Respondents 0% 29% 71% 04812162024 Strongly Disagree Disagree Neutral Agree Strongly Agree (continued)
21 © Accenture 2001 Survey Response & Findings The CIO Profile Survey Findings qCIOs must maintain an appropriate level of technical competence – Though there is an increasing bias toward business proficiency, CIOs would need to keep abreast of IT developments to deliver the required IT functionalities qCIOs must position IT strategically – aligning IT and corporate goals are fundamental to IT delivering value to the organization The results show that apart from possessing an understanding of technology, a CIO should be able to implement the organizations IT vision, and align it to corporate objectives
22 © Accenture 2001 In surveying the current IT scene, we found CEOs to be very involved in IT spending issues. This could be expected as IT budgets have increased rapidly in most companies Survey Response & Findings IT Management Practices Q. Should the CEO participate in key IT decision-making? Survey Respondents (%) Yes 86% No 14% Q. Has your enterprises rate of IT spending accelerated over the past 3-5 years? Survey Respondents (%) Yes 93% No 7%
23 © Accenture 2001 Survey Response & Findings IT Management Practices Q. Do you agree that IT initiatives are within budget control? Q. Do you agree that IT initiatives are allocated sufficient budgets? No. of Survey Respondents 0% 7% 14% 62% 17% 04812162024 Strongly Disagree Disagree Neutral Agree Strongly Agree No. of Survey Respondents 0% 3% 59% 24% 04812162024 Strongly Disagree Disagree Neutral Agree Strongly Agree The survey results indicate that IT Management and Delivery at most organizations have met their CEOs expectations 14%
24 © Accenture 2001 Survey Response & Findings IT Management Practices Q. Do you agree that IT initiatives are generally able to deliver clear value? Q. Do you agree that IT initiatives are completed in a timely fashion? No. of Survey Respondents 0% 17% 52% 14% 04812162024 Strongly Disagree Disagree Neutral Agree Strongly Agree Strongly Disagree No. of Survey Respondents 0% 21% 48% 31% 04812162024 Disagree Neutral Agree Strongly Agree (continued) 17%
25 © Accenture 2001 On IT outsourcing, we surveyed the extent of IT functions that companies have outsourced… Q. Which of the following IT functions does your enterprise contract out? Survey Response & Findings IT Management Practices No. Survey Respondents 21% 76% 59% 04812162024 Does not Outsource E-Commerce App. Dev. General App. Dev. Data Center Operations 72%
26 © Accenture 2001 … and found CEOs to be generally satisfied with the service received in contracting out these functions Survey Response & Findings IT Management Practices Q. Please rate your overall satisfaction of contracting out the relevant IT function? 0%10%20%30%40%50%60% Very High High Neutral Low Very Low E-Commerce App. Dev. General App. Dev. Data Center Operations
27 © Accenture 2001 The CEO IT Survey The Singapore Tribe Has Spoken What Other Tribes Had Said Agenda
28 © Accenture 2001 What attributes work? First, lets discount the obvious No correlation between type of business and the CIOs success No correlation between CIOs background and the targeted companys industry There does seem to be a correlation between understanding key IT issues and success Secondly, the CIO must have a vision of what needs to be done What is the purpose of IT within the enterprise? Focus is broadly visible -- both within IT and within the business Thirdly, the CIO must translate the vision into action Able to bold goals matched with practical short term moves Focus on long term IT effectiveness Focus on short term IT efficiency CIO Success Factors
29 © Accenture 2001 What attributes work (continued)? Fourth, the CIO must have a Focus on Customer Value Seek to deliver differentiated services that customers find valuable Propose options which deliver value externally driving top-line growth Use external services where value cannot be delivered internally Finally, the CIO must align ITs activities in an organic manner Understand the big picture Develop the trust of the executive team CIO Success Factors
30 © Accenture 2001 Elements of the CIOs Job Description Reporting Relationship Trend is away from the CFO and/or COO reporting relationship Trend is towards reporting to the CEO as a peer of the senior team Status and Scope Plays major role in IT Governance (e.g., Chairs IT Steering Committee) Interacts with senior leadership to ensure alignment of IT activities All IT activities of consequence have a solid or dotted line to the CIO CIO is responsible for managing major vendor relationships IT Planning and Strategy is a major element of the CIOs ongoing role IT Infrastructure reports to the CIO Essential Functions IT Leadership Focuses proactively on emerging business initiatives Develops relationships with customers to better understand needs What Does a CIOs Job Look Like?
31 © Accenture 2001 Elements of the CIOs Job Description (Continued) Essential Functions (Continued) Leadership (Continued) Develops broad range of relationships to ensure sponsorship of IT initiatives Fosters innovations and risk management in evaluating emerging technologies IT Strategy and Planning Works with Business Leadership to develop, evaluate and implement IT strategies that are aligned with business imperatives Contributes to the business strategy development process Understands the latest technologies and innovations and how these might enable business processes What Does a CIOs Job Look Like?
32 © Accenture 2001 Michael Earl, a leading academic, described in 1990 the successful CIO profile as having four essential elements along with a number of survival attributes. Visionary Relationship BuilderDeliverer Tactician Source: Earl, M.J., Information Management, 1996 The 1990 ViewCIO Profile Elements Survival Attributes Personal IS Experience IT Know-How Social Skills Sensitivity IS Management Processes Building a shared vision Building relationships CEO Relationship Proactive Planning Organizational Context Organizations attitude to IT Performance Creditability Survival Attributes Personal IS Experience IT Know-How Social Skills Sensitivity IS Management Processes Building a shared vision Building relationships CEO Relationship Proactive Planning Organizational Context Organizations attitude to IT Performance Creditability CIO Profile
33 © Accenture 2001 Earls current perspective is additive with some interesting insights from his continued study of this issue Visionary Systems Thinker Relationship Builder Alliance Manager Deliverer Architect Tactician Reformer Source: Earl, M.J., Information Management, 1996, HBR, 2000 The 1996, 2000 View CIO Profile Elements oKnowledge of IT is critical oOne non-surviving CIO (and former CEO) in Earls study said I want to take up the CEO job again -- but I only get offered CIO jobs. I want four times the rate for being a CIO than I would accept for being a CEO oOne states that CIO means Career Is Over oKnowledge of IT is critical oOne non-surviving CIO (and former CEO) in Earls study said I want to take up the CEO job again -- but I only get offered CIO jobs. I want four times the rate for being a CIO than I would accept for being a CEO oOne states that CIO means Career Is Over Selected Insights Fortune 500 CIOs CIO Profile
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