‘Business-led IT’ spend creates opportunities but also potential security risks, finds 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.
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 IT 16% of organizations that don't formally involve IT in business-led IT decisions versus 7% for those that do., 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 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:
“In an age where anyone with a smartphone and credit card can set up an IT system, there are both incredible opportunities and major risks. Those enterprises that get the balance right between innovation and governance will be the winners,” said Albert Ellis, CEO of Harvey Nash. “At the same time, boards are asking their CIO and technology team to prioritize automation of jobs. How organizations adapt to automation will increasingly become a priority, and many are not at all ready.”
Steve Bates, Global Leader, CIO Advisory Centre of Excellence, KPMG International, said, “There is no longer business strategy and technology strategy, it's simply strategy with technology driving it. This research clearly shows that organizations putting technology in the hands of value-creators and connecting the front, middle and back office are winning in the market. The future of IT is a customer obsessed, well governed, connected enterprise.”
Digital leaders perform better
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:
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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.
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: technology recruitment, IT outsourcing and leadership services.
To learn more, please visit www.harveynash.com.
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.
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