Using cloud is not a sin, digital leaders do it as well - KPMG Slovakia
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Using cloud is not a sin, digital leaders do it as well

Using cloud is not a sin, digital leaders do it as well

Almost two-thirds (63%) of organizations now allow business to procure and use cloud solutions. It is typical especially for digital leaders which are organizations that consider themselves ‘very effective’ or ‘extremely effective’ at using digital technologies to advance their business strategies. Technology managed outside the IT department brings with it both significant business advantages and increased privacy and security risks, reveals the 2019 Harvey Nash/KPMG CIO Survey. Technology leaders are as well struggling to find the right talent with skills shortages at their highest level since 2008. The three most scarce skills are big data/analytics, cyber security and AI.

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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. 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). IT department is moreover being tasked by its board to use AI/automation to improve efficiencies (up 17% this year as a board priority).

Leading CIOs to expect that up to 1 in 5 jobs will be replaced by AI/automation within 5 years. However, 69% of CIOs believe that new jobs will compensate for job losses to AI/automation.

More technology leaders reported increases in IT budgets under their control than at any time in the last 15 years. The jump in those reporting increases (from 49% to 55%) is the largest seen, with the one exception of 2010, when organizations were still clawing their way out of the global recession.

„This year we have seen the largest proportion of organizations increase their investment in technology in all the years we have been tracking it. Even with enterprises where the emphasis is on efficiency and saving money, investment in technology is increasing. Whatever the problem, technology seems to be part of the answer", said Pavol Adamec, Executive Director, Risk consulting, KPMG in Slovakia.

There has been only minimal growth in women on tech teams, 22% this year compared to 21% last year, and no change in the percentage of female technology leaders at 12%.

Digital leaders, which are organizations that 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. It includes time to market (53% vs 34% for the rest), customer experience (65% vs 49%), revenue growth (55% vs 43%) and profitability in the last year (50% vs 37%).

Digital leaders are also more likely to introduce ‘major new changes to products and services’ in the next three years (55% vs 39% for the rest), and focus on making money - 76% of CEOs in digital leader organizations want their technology projects to ‘make’ rather than ‘save money’, compared to 58% for the rest.

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. For more information about the survey and to request a full copy of the results, please visit www.hnkpmgciosurvey.com.

© 2019 KPMG Slovensko spol. s r.o., slovenská spoločnosť s ručením obmedzeným a člen KPMG, siete nezávislých firiem pridružených ku KPMG International Cooperative, švajčiarskej právnickej osoby. Všetky práva vyhradené.

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