Tech spend outside IT department creates opportunities, but opens back door to potential security and consumer trust risks, finds world’s largest technology leadership survey.
Almost two-thirds (63%) of organizations 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. When IT spend is managed away from the direct control of the CIO companies are twice as likely to have multiple security areas exposed, and more likely to become a victim of a major cyber-attack.
“Cyber Security is now a top priority for business leadership and is an area of increasing importance for Boards who are dedicating more time to this objective,” says Logan Simpson, Cyber Security Lead, KPMG Bahrain. “Those that deal with Cyber threats with a proper risk optimization mindset, rather than a compliance or ‘tick-box’ exercise, will be better prepared to respond and recover appropriately and ensure their reputation and customer trust remains intact.”
“Cyber Security continues its stellar rise in importance in this year’s survey with 56% of respondents stating that Cyber is a Board Priority. Boards and CEOs are placing customer trust at the center of their strategy, hence protecting data and systems from cyber threats is paramount. 91% of those surveyed agreed that Data Privacy and Trust will be as important as Product/Service offering in attracting customers”, added Manav Prakash, Partner, Advisory, KPMG Bahrain
The largest technology leadership survey in the world, analyzing responses from organizations with a combined technology spend of over US$250bn, reveals for those organizations where the IT team is formally involved in decision making around business-led IT, business advantages include improving time to market new products (52% more likely to be ‘significantly better than their competitors’) and employee experience (38% more likely to be ‘significantly better than their competitors’).
However, four in ten (43%) companies are not formally involving IT in those business-led IT decisions. These organizations are twice as likely to have multiple security areas exposed than those who consult IT2, 23% less likely to be ‘very or extremely effective’ at building customer trust with technology, and 9% more likely to have been targeted by a major cyber-attack in the last two years. These risks are uncovered at a time when cyber security reaches an all-time high as a board priority (56% vs 49% last year).
The huge opportunity to capitalize 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:
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About the Survey
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. The survey of 3,645 CIOs and technology leaders was conducted between 13th December 2018 and 4th April 2019, across 108 countries.
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