The 2016 CIO Agenda

Building The Digital

Platform
Lee Weldon
Dave Aron
Graham Waller
2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 2,944 CIOs
84 Countries
$11T Revenue
$250B IT Spend
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Manufacturing Government Services Banking Energy/ Utilities Education Insurance
21% 13% 11% 10% 8% 7% 7%

Retail Healthcare Transportation Communications Wholesale Trade Media

6% 5% 5% 3% 2% 2%

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 13 Case Studies

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Digitalization is Intensifying; The Stakes Are Rising
Private Sector Public Sector
What % of your revenues are digital? What % of your processes are digital?

41%
37% 77%

31% 60%
25%
22% 42%
16%

Now In 2 years in 5 years Now In 2 years in 5 years

CIO survey (n=609) CIO survey (n=344)

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Digitalization Is Still Quite Operational;
The Potential Is Much Greater
941 CIO respondents selecting top 3 digital impacts on their business, in order

Number 1 In Top 3
More Revenues From Better Operations 34% 66%
More Business Through Digital Channels 21% 48%
Tighter Partnerships 10% 37%
Creating New Markets 10% 26%
Engaging and Empowering Employees 7% 40%
Changing the Basis of Competition 6% 20%
Cost Reduction 6% 39%
Expanding to New geographies 3% 11%
Crossing Industry Boundaries 2% 9%

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The Technology Opportunity:
Monetize Big Data, Underpinned by the Cloud
No. No. Priority 2016 2015 2014 %
1 BI/Analytics 39% 41% 50%
2 Infrastructure and Data Center 27% 31% 37%
3 Cloud 25% 27% 32%
4 ERP 21% 26% 34%
5 Digitalization/Digital Marketing 21% 17% 11%
6 Mobile 20% 24% 36%
7 Security 15% 13% 11%
8 Networking, Voice and Data Communications 10% 12% 12%
9 Legacy Modernization 10% 7% 7%
10 Industry-Specific Applications 9% 9% 10%
11 CRM 9% 11% 8%
Note: Percentages represent the proportion of CIOs citing each priority as one of their top three areas of new IT spending.

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The Threat Matrix Is Evolving

Choose the Scenario You Feel Is the Greater Threat to Your Business

Security and New Competitive and

Cyber-Risk Threats 59% 41% Commercial Threats
n = 961

Digitally Driven Digital-Enabled

Competition From Companies Entering Your
Traditional Industry 53% 47% Industry From Other
Competitors n = 928
Industries

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 The Purse Strings Are Loosening, but Only a Little

Global Weighted Average: 2.2%

+2.3%
North
+1.5%
America
EMEA
+4.1%
+3.5% APAC
Latin
America

Represents growth in spending inside IT organization, in nominal terms

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The World Is Moving Toward Platforms

Business as a System Business as a Platform

Products &
Services Markets
Products
Moments
Services

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Digital Visionaries Are Building Platforms Throughout
Their Businesses
Ecosystem

IT

Enterprise

#GartnerSYM
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Create a Bimodal Delivery Platform

Exploit
and
Explore

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Build the Dual Capability to Exploit and Explore

Refactor to
Industrialize

Unlock for
Innovation

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Bimodal Is Becoming Increasingly Real

Adoption of Bimodal Tools by Those On The Journey (n = 360)

Agile methodologies 76%

Multidisciplinary
teams 72%
Adaptive sourcing 53%

38%
Different funding 36%
Mode 2 outside IT 28% Of those who have
Different metrics 27% Bimodal IT, the
Work with
of CIOs are on startups/SMBs 25% average proportion
the Bimodal IT Bimodal subcultures
Formal innovation
25% of investments in
23% Mode 2 is 25%
journey management
Crowdsourcing 8%

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The Most Impactful Bimodal Tactics Are Not the Most Used
7.00

5.00
Crowdsourcing
Different Metrics

Work With
4.75
Startups/SMBs
Average
Digital Formal Innovation Mgmt. Different Funding Agile Methodologies
Performance
4.50
Bimodal Subcultures
Adaptive Sourcing
Multidisciplinary
Mode 2 Outside IT Teams

4.25
0% 10% 20% 30% 40% 50% 60% 70% 80%
n = 360 % of CIOs Using

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Examples of actions CIOs need to take when creating their
Delivery Platform Action Plan

ASAP
HOW CAN
YOU HELP
Build a bimodal business and IT structure
THEM?
Adopt adaptive sourcing strategies

Experiment with crowdsourcing in Mode 2

Try working with startups/smaller partners

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Evolve the Talent Platform

Ignite
Talent
from Inside
and Out

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Talent Issues Are the Biggest Barrier to CIO Success
What is your biggest barrier to achieving your objectives as a CIO?

22%

15%
12%
11%
9%
8% 8%

n = 555 Skills Money Culture Alignment Technology Change Relationships

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The Biggest Talent Gaps Are Information and Business Knowledge

1. Information/Analytics 40%
2. Business Knowledge/Acumen 18%
3. Security & Risk 17%
4. Digital 15%
5. Project Management 13%
O
6. Software Development 13%
7. Architecture 12%
8. Leadership 9%
9. Attract/Retain 8%
10.Technical Skills 8%
2016 CIO Survey n = 937

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Examples of actions CIOs need to take when creating their
Talent Platform Action Plan

ASAP
HOW CAN
Make more hires from the rest of the business and
YOU HELP
developmental rotations
THEM?
Build closer relationships with universities
(internships, developing existing talent)

Consider "Techquisitions" to capture talent

Assess current and potential partners as digital
inhibitors versus accelerators

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Build Your Leadership Platform

Digital
Leadership
as a Team
Sport

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CIO Power and Influence Up from 2014, And Increasing

Nature of current Expected changes in CIO power

CIO-CEO Relationship and influence in next year

51% 2014 2016

45% Decreasing significantly 0% 0%
Decreasing somewhat 1% 0%
33% Decreasing slightly 3% 2%

24% 24% Remain about the same 20% 16%

19% Increasing slightly 31% 29%
Increasing somewhat 31% 34%
3%
1% Increasing significantly 14% 18%
Trusted Ally Partnering Transactional At-Risk
n=1356 2014 2016 n=482

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Many CIOs Are Leading Digital Transformation
and Innovation
CIO Leadership Roles
Digital Transformation (CDO) 39%
Innovation 34%
Enterprise Change 22%
Shared Services 19%
E-Commerce 18%
Business Strategy 13%
Risk (CRO) 9%
COO 7%
HR 2%
CFO 2%
None 30%
2016, n = 952

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Examples of actions CIOs need to take when creating their
Talent Platform Action Plan

ASAP
HOW CAN
Extend your leadership focus beyond the
YOU HELP
boundaries of the business to the ecosystem
THEM?
Build a plan to develop the digital savvy of the
business leadership and IT teams
Consider getting mentoring from a digital-
centric company and/or reverse mentoring
Find a way to make time and space to actualize
the plan and play a digital leadership role

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Recommended Gartner Research

Building the Digital Platform: The 2016 CIO Agenda

Dave Aron, Graham P. Waller and Lee Weldon (G00292133)
Toolkit for IT Executives: Job Description for the COO of IT
Mark Coleman, Dave Aron and Tomas Nielsen (G00277753)
What to Do If Your Digital Business Strategy Violates Culture, Ethics or the Law
Tomas Nielsen, Frank Buytendijk and Others (G00276440)
Hit the Bimodal IT Highway Now Considerations for Structuring and Staffing
Diane Berry, Lily Mok and Mark Coleman (G00276019)
Digital Workplace Key Initiative Overview
Mike Gotta and Matthew W. Cain (G00277654)
A Bimodal Enterprise Needs Three Subcultures
Dave Aron (G00273134)
Get Ready for Digital Business With the Digital Business Development Path
Jorge Lopez, Patrick Meehan and Others (G00263766)

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.