Nearly three-quarters (70 percent) of organisations across Australia now allow technology to be managed outside the IT department, a shift that brings with it both significant business advantages and increased privacy and security risks, reveals the 2019 Harvey Nash/KPMG CIO Survey.
The largest technology leadership survey in the world, analysing responses from organisations with a combined technology spend of over US$250bn, reveals for Australian organisations where the IT team is formally involved in decision making around business-led IT, business advantages include improving time to market new products (24 percent more likely to be ‘better than competitors’) and employee experience (30 percent more likely to be ‘better than competitors’)
However, four in ten (41 percent) companies in Australia are not formally involving IT in those business-led IT decisions. These organisations are twice as likely to have multiple security areas exposed than those who consult IT , 41 percent less likely to be ‘very or extremely effective’ at building customer trust with technology, and 12 percent more likely to have been targeted by a major cyber-attack in the last 2 years. These risks are uncovered at a time when cyber security reaches an all-time high as a board priority (64 percent vs 56 percent last year).
The huge opportunity to capitalise on the value of business-led IT, but also manage its risks, comes at a time of significant change for the business, the CIO, and the IT department, as the survey found:
“Business led IT is creating more value than ever before. More Australian technology leaders reported increases in IT budgets under their control than at any time in the last 15 years, demonstrating the scale of the opportunities and risks facing CIOs. Those that get the balance right between innovation and governance will be the winners,” said Bridget Gray, MD Australia of Harvey Nash. “At the same time, boards are asking their CIO and technology team to prioritise automation of jobs. In a market characterised by skill shortages in key areas, how organisations adapt to automation will increasingly become a priority, and many are not at all ready.”
Guy Holland, Partner in Charge, KPMG Digital Delta, said, “Technology has rapidly emerged from the IT department to become the key driver of business strategy. But this research shows the IT team is often excluded, at a great cost to security and governance. In this world, a holistic approach is key to success. Organisations that put technology in the hands of value-creators while simultaneously connecting the front, middle and back office will be the ones that win in the market. The future of IT is a customer obsessed, well governed, connected enterprise where the CIO plays a key role in supporting transformation.”
Digital leaders perform better
Digital leaders, which are organisations who consider themselves ‘very effective’ or ‘extremely effective’ at using digital technologies to advance their business strategies, performed better than their competitors on every aspect surveyed:
Gender diversity initiatives are failing big tech
First signs of Quantum Computing
IT leaders reporting budget increases – highest for 15 years
In its 21st year, the 2019 Harvey Nash/KPMG CIO Survey is the largest IT leadership survey in the world in terms of number of respondents. A total of 254 respondents in Australia were included in the global survey of 3,645 CIOs and technology leaders, which was conducted between 13th December 2018 and 4th April 2019 across 108 countries.
For more information about the survey and to request a full copy of the results, please visit www.hnkpmgciosurvey.com.
Harvey Nash has helped over half the world's leading companies recruit, source and manage the highly skilled talent they need to succeed in an increasingly competitive, global and technology driven world. With over 2,500 employees in 36 locations, we have the reach and resources of a global organization, whilst fostering a culture of innovation and agility that empowers our people across the world to respond to constantly changing client needs. We work with clients, both large and small, to deliver a portfolio of services: executive search, professional recruitment and IT outsourcing.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 153 countries and have 207,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
+61 411 020 680
©2021 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.