HARVEY NASH / KPMG
CIO SURVEY 2019

Personal Benchmark Report

You are one in 10 of survey participants who have taken part in at least three CIO Surveys in the last five years. We really appreciate you contributing to our study, and we are delighted to be able to share the results of this Personal Benchmark with you

It contains:

A snapshot of how your key responses to the CIO Survey compare with your peer group.

Further ‘behind the scenes’ data that you will not find in the formal published report.


We hope you find it useful. It’s actually quite a project for us, so whatever your opinion of the PBR (from love to hate), we’d really appreciate your feedback!

The CIO Survey Team

Section 02

Participant overview

Your participant reference

9R2IQZkH

Your job title

CIO

Your region

United Kingdom

Your gender

Male

Section 03

Your dashboard

Swipe to reveal the rest of the table.


Your response

Most common response of peers in 2019


2014

2015

2016

2017

2018

2019

IT budget change

IT headcount change

Salary change

CEO focus make or save money?

Save

Make

Make

Make

Make

Save

Make

How long in current job?

2 - 5 years

2 - 5 years

2 - 5 years

2 - 5 years

5 - 10 years

N/A

Less than 1 year

Here’s a quick snapshot of some of your key responses and how they compare with your technology leader peer group across the world (3,645 to be exact). If you have taken part in previous CIO Surveys, we have also included these responses as well so you can see how your IT strategies and personal career have evolved.

So, that’s the snapshot. Let’s get into the detail…

Section 04

Investment reaches new peak

Our Question Was

How has your IT budget changed in the last 12 months?

Your response

Increased

You might think, like we did, that with so much uncertainty in the world, organisations might be taking a very cautious approach to their technology investment.

Well that doesn’t appear to be the case.

Over the past year more Technology Leaders reported budget increases than at any time in the last 15 years. And the jump in those reporting increases (from 49 per cent to 55 per cent) is the largest we’ve seen, with the one exception of 2010, when organisations were still clawing their way out of the global recession.


Your own response to the CIO Survey indicates you are enjoying budget increases, like a significant proportion of your peers. Technology is increasingly becoming central to business strategies, and organisations are ramping up investment to stay ahead.

You can see how budget changes differ per sector, as well as a breakdown what proportion of revenue is spent on technology, in the chart section of the CIO Survey microsite. www.hnkpmgciosurvey.com/charts.

Section 05

An age of transformation

Our Question Was

To what extent will your products and services transform over the next 3 years?

Your response

Some changes e.g. new products/services introduced, existing ones still dominant

Almost half (44 per cent) of organisations are undergoing some kind of major digital change that will fundamentally change their organisation. This is either through introducing new products and services that will be equal to or more dominant than existing ones (38 per cent) or – more radically – fundamentally changing their business model, for instance moving from selling products to selling services (6 per cent).


Your own organisation is going through a certain amount of transformation, but not in a radical way. Perhaps you are already transformed or you are digital native that requires little change, or perhaps you haven’t seen a case for investing more significantly. Either way, 44% of organisations are more ‘transformational’ than you.

The organisations most affected by transformation are ones where their product is most easily digitised; more than half of Technology Leaders in the Telecommunications (57 per cent), Broadcast / Media (57 per cent) and Technology (56 per cent) sectors are reporting either ‘major’ or ‘radical’ transformation.

Our research paints a picture of great change, and this should be no surprise. It is well documented how the average life expectancy of organisations has more than halved in the past century, and enterprises are recognising that transformation, sometimes constant transformation, is the key to staying ahead of the game.

Section 06

Technology adoption

Our Question Was

How would you characterize your organization's usage of the following technologies?

When it comes to investing in technologies, be they emerging or well-established, CIOs are not short of options. But with so many being positioned as the ‘next big thing’, it’s easy to see how making choices becomes difficult. Some organisations are driven by a desire to lead, others driven to be fast followers, and the rest – quite possibly – driven to madness.

Cloud is, unsurprisingly, the most widely adopted technology listed here.


Your organisation, like 44% of your peers, reflects this trend and has adopted it widely.

Looking further down the table we can see the latest waves of technology investment include: the internet of things, on-demand platforms, robotic process automation and artificial intelligence (AI). At least one-fifth of organisations have at least a small-scale implementation of these technologies. Over time we can expect these to grow and we expect much of this to be driven by business-led investment.

It is interesting to see that 4 per cent of organisations have implemented quantum computing to at least some degree. This technology is so early stage that some commentators don’t even believe it will have a commercial application, so this figure feels surprisingly high. That said, we are seeing big pharmaceuticals, financial services and energy organisations making bets in this area.

Section 07

AI – the rise of the robot

Our Question Was

What proportion of your organization’s workforce do you believe could be replaced by AI or automation in the next five years?

Your response was

20%

Typically, respondents believe around 10 per cent of their workforce will be replaced within five years, but for a third of respondents that figure goes up to 20 per cent. Either way these figures are significant.

While much has been made of how AI will replace humans, the majority of CIO Survey respondents (69 per cent) believe that new jobs will appear to compensate. AI will allow employees to engage in richer interactions with others and perform work that requires more brainpower. The world is not short of problems to solve.

Looking forward, we can only expect more. While AI right now is in the domain of high investment and highly skilled people, those barriers are quickly lowering, and cloud-based AI will quickly take it further still.

Section 08

Business IT, the end of shadow

Our Question Was

What is your approach to business managed IT spend / Shadow IT?

Your response

It is allowed but not encouraged

Over the years, the CIO Survey has been tracking the inexorable rise of technology expenditure controlled outside the IT department. This apparent eroding of power and influence of IT was not something traditionally the CIO supported. The dark name given to this phenomenon – ‘shadow IT’ – says it all.

But things are changing. Almost two-thirds of organisations (64%) at least allow it, and approximately one in ten actively encourage it. Younger, perhaps more digitally native, organisations are almost twice as likely to encourage business-managed IT as the global average.


In your own organisation it is allowed, but not actively encouraged like 54% of your peers.

For many organisations there has been a radical rethink in their approach to business-managed IT, increasingly seeing it as a useful tool for empowering the business, removing bureaucracy and getting closer to the customer. The supporting evidence is quite clear – organisations that actively encourage business-managed IT are much more likely to be significantly better than competitors in a whole host of factors, including customer experience and time to market for new products (50% more likely), and employee experience (75% more likely).

Business-managed IT isn’t going away. Even for those organisations that completely disallow it, 62% report it still exists. It requires the business and technology team to collaborate and, at least for the Technology Leader, it needs a supportive CEO who understands that budget and influence are increasingly two different things.

Section 09

It’s all about privacy and trust

Our Question Was

Agree or disagree: The way organizations manage and use customer data will become just as important as product/service quality when attracting customers.

Your response was

Disagree
Almost all Technology Leaders (91 per cent) agree that data privacy and trust will be as important as their product/service offering in customer attraction, something you appear to disagree with.

Marketeers often talk about the four ‘P’s that drive customer purchases – product, price, promotion and place; does this add one further ‘P’ to the mix – privacy?

In an increasingly complex world of data and security, Technology Leaders need to consider how to place trust and security at the heart of their development and design. For many, factoring this in may actually help progress innovation and improve speed to market. Technology Leaders tell us that involving cyber and data specialists early enough helps create ‘trust by design’ and saves the costs associated with retrofitting these factors at a later stage.

We’d love to get your feedback

We hope you are enjoying reading through your Personal Benchmark Report and that you are finding the Insights valuable. They take some effort to develop, so any feedback you can give us is very welcome.
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Section 10

Who are the leaders?

Organisations are complex; and, for many, new technology investments often take a very long bumpy journey before they even have a chance of having a measurable impact on business performance.

And yet some organisations are making a success of it. As you can see from the chart, Digital Leaders – the 30 per cent of organisations that are ‘very or extremely effective at using digital technology to advance their business strategy’ – are significantly more likely to be better than their competitors on a whole host of business performance factors, including time to market, customer experience and – most importantly, and CEO-pleasing – profit growth.

Digital leaders are different from other organisations in a number of ways:

  • Expecting transformation - Digital Leaders are more likely to be introducing ‘major new changes to products and services’ in the next 3 years (55% versus 28% for the rest).
  • Outward looking - The No.1 issue their board wants IT to address is ‘new products and services’, compared with ‘IT consistency and stability’ for the rest.
  • Making money is the priority - 76% of their CEOs want their technology projects to ‘make’ rather than ‘save money’, compared with 58% for the rest.
  • Report to CEO – The Technology Leader is more likely to report to the CEO (44% versus 38%).
  • Sit on the executive team – the Technology Leader is more likely to be on the executive team (66% versus 57%).

For further analysis around digital leadership read KPMG’s special report

Section 11

Skills crisis, big is not beautiful

Our Question Was

Does a skills shortage prevent your organization from keeping up with the pace of change?

Your response was

No

This year’s research shows that skills shortages are at an all-time high since 2008 and that these shortages can’t fail to act as a bottleneck to growth.


You own organisation is one of the lucky few where skills are not holding you back. Perhaps you have a particularly good approach to retaining people, or a strong employer brand or resourcing partner network.

Those organisations that are most strong at retaining their best people are less likely to have a skills shortage (only 56% do, compared to 67%).

The CIO Survey suggests that the skills shortage is a tale of two types of organisation. Younger and smaller organisations are less likely to have a skills shortage, older and larger ones more likely. Larger organisations, ones with budgets over $250m, also appear to be the least able to retain their staff for the duration that they would like: only 26 per cent retain key staff within their technology talent compared with 44 per cent of smaller organisations with budgets of under $50m. This poses a particular problem when large organisations are most likely to benefit from transformation and do not have the skills to support their plans.

Section 12

Skills most in demand

Our Question Was

Which functions do you suffer from a skills shortage in?

Your response was

Technical architecture, Enterprise architecture, Business analysis, Development, Change management, Big data or analytics, Artificial intelligence, Automation or robotics, Agile methods, DevOps, Cloud

We report in the CIO Survey how Cyber security, AI and transformation are driving technology investment; here we see how that demand is affecting the employment market. Skills in these areas are becoming scarce.

Section 13

Influence not control

Our questions were

Is the CIO/IT Director becoming more strategic?

Your response was

More

There are few senior roles within organisations today where the direction of travel is as uncharted as that of the CIO. While most executive roles will have different challenges now than ten years ago, it is the role of the Technology Leader that appears to be uniquely disrupted. And like all disruption, it can have positive and negative results, sometimes at the same time.

It’s no surprise then that this year’s survey reveals a mixed message around the profile of the CIO. Last year we tracked how influence had dropped, and we asked: is this a blip or the beginning of a long-term trend? This year we see influence step up a little, but at the same time membership of the executive team continues its marked decline since 2017.

Many Technology Leaders are very relaxed about whether they sit on the board. What they care more about is having the appropriate access and influence, and a supportive CEO to help them see their vision through.

Section 14

CDO appointments flatten out

Our questions were

Does your organization have a Chief Digital Officer or someone serving in that capacity?

Your response was

Yes, we have someone else serving in this role

In many ways the fortune of the Chief Digital Officer (CDO) role has been entangled with the fortune of the CIO. For some organisations the CDO role was created to fulfil a need that was not being met by the executive team, and in particular the CIO. In 2015, an incredible one in ten organisations appointed a CDO; we have never seen a new job role adopted more quickly than this. However, we are now seeing CDO role adoption level out.

This is certainly not through dissatisfaction with the role. Organisations with dedicated CDOs are more likely to be Digital Leaders than organisations that do not have CDOs (13 per cent versus 11 per cent). But what we are seeing are more CIOs taking responsibility for the CDO remit. This combined role doesn’t tend to be exactly the same as a ‘pure’ CDO, but organisations are adopting whichever approach works for them: appointing a CDO where they need new external skills, or integrating it into an existing role where it’s appropriate. CIOs who are also CDOs tend to be different from their CIO peers – for instance, they are more encouraging of business-managed IT and more likely to be on the executive team.

Section 15

Salary against budget

Our questions were

Salary against budget

You answered

Base: $200,000 - $219,999
Total Comps: $52,500
Budget: $50m-$99m

Of course budget size is only one factor when it comes to salary; your sector plays an important role too (with Broadcast / Media, Oil & Gas, Financial Services and Healthcare CIOs at the top, and Charity, local / state Government, Telecommunications and – perhaps surprisingly – Pharmaceutical towards the bottom).

Section 16

Job satisfaction

Our questions was

How fulfilling is your current role?

Your response

Quite fulfilling

Being a CIO remains a highly fulfilling job, but the last two years have seen fulfilment (those who are ‘very’ or ‘quite’ fulfilled, drop a little). This year sees those numbers grow again.


You own response puts you in the most commonly chosen category of ‘quite fulfilled’. You enjoy your job mostly, but there are areas where things can improve. One third of IT leaders are happier than you, but 20% less so!

It’s never easy being a Technology Leader. But most didn’t take on the role for an easy life. Indeed no other executive role has the opportunity to be truly transformational, both for the organisation, and for the person occupying it.

That’s it from us for the moment. The next you will hear from us is when we send you the full CIO Survey report in early summer.

We hope you take part in next year’s CIO Survey, but in the mean time we’d love to get your feedback on this Personal Benchmark Report. They take some effort to develop, so your views are very welcome.

The CIO Survey Team.

We’d love to get your feedback

We hope you take part in next year’s CIO Survey, but in the mean time we’d love to get your feedback on this Personal Benchmark Report. They take some effort to develop, so your views are very welcome.
Feedback now