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In March, the KPMG CIO Advisory practice in Management Consulting launched a quarterly webcast series, The Evolution of IT. The program is facilitated client panel discussion centered on strategic issues facing CIOs. The CPE questions from the inaugural webcast were published as a poll, What’s Really Holding IT Back? The poll features infographics coupled with relevant panelist quotes from the program.
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What’s really holding IT back?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
KPMG recently held a Webcast entitled “Evolution of IT: Creativity, Flexibility and Operational Discipline.” The Webcast featured a discussion with IT executives who shared their thoughts on innovation and disruptive technologies. Throughout the program, more than 600 IT leaders were polled on their views. Here are some of their insights.
Evolution of IT: What’s really holding IT back?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Q: Which trend is the most disruptive?
Insight: “We are a B2B company, but with the Affordable Care Act, we see our industry going to products for individuals very quickly. People are wanting to buy insurance on mobile phones and iPads. So it’s important to know where you’re going to go.” Patrick Steele Delta Dental of California, Vice President & CIO
CLOUD
SOCIAL MEDIA
UNKNOWN
A COMBINATION OF TWO OR MORE OF THE ABOVE
MOBILE
BIG DATA
Evolution of IT: What’s really holding IT back?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Q: How interested are your business leaders in embracing new technologies?
Proactively pursuing a two-way dialog with IT
Unknown
Waiting for IT to deliver ideas
Hesitant to explore new
ideas
Insight: “It’s important to be on time and under budget. But today, we look at business outcomes versus a specific technology—did we make an operational contribution to the organization?” Michael Rhymes Vice President of Information Technology & Business Systems Eaton
Evolution of IT: What’s really holding IT back?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Q: What is the biggest driver for your organization to explore new technologies?
Insight: “We have a new role in IT where one of our people sits at the table with the business leaders’ organization to drive new solutions, new thinking, and innovation rather than trying to innovate in a vacuum.” Robert Lux Senior Vice President and CIO Freddie Mac
IMPROVING PRODUCTIVITY
LOWER COST
ENABLING BETTER MANAGEMENT DECISIONS
BETTER CUSTOMER INTERACTION
IMPROVING ROI IN IT INVESTMENTS
OTHER
Evolution of IT: What’s really holding IT back?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Q: Are you using predictive analytics?
To some extent
Unknown
Have not started
thinking about this
To a great
extent Insight: “We used to use brokers to assess a property’s value. Now we also use predictive analytics. By getting homes on the market quicker and more accurately priced, we’ve created significant value for our company and our country.” Robert Lux Senior Vice President and CIO Freddie Mac
Not something it should focus on
Evolution of IT: What’s really holding IT back?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Q: How will your organization source most of its new technology in the future?
Blend of outsourcing and cloud (public/private‒ infrastructure and SaaS)
Continued use of traditional IT
outsourcing
Bring more outsourcing
back in house
Buy it as a packaged service
(provider manages process,
technology, people) Insight: “Hybrid sourcing,
SaaS, and cloud will predominate, but some will continue with traditional outsourcing while others, taking a lead from GM, will bring it back in-house.” Matt Bishop Partner, CIO Advisory KPMG
Majority use of cloud (public/private‒
infrastructure and SaaS)
Evolution of IT: What’s really holding IT back?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Evolution of IT: What’s really holding IT back?
Q: Is the IT organization innovative?
Insight: “The pace of change is going to be the challenge. It’s not only about what matters, but more importantly, helping the organization understand why it matters.” Michael Rhymes Vice President of Information Technology & Business Systems Eaton
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Q: What is the greatest inhibitor to IT innovation?
It’s structure, processes, and standards
IT management does not create the environment for personnel to innovate
Lack of innovative personnel
within the IT organization
It’s reluctance to take risks
Analysis: Systemic issues are the primary cause for a lack of IT innovation, with 66% citing environment or structure, processes and standards. Less than 20% blame a lack of innovative personnel. 16% cite a reluctance to take risks.
Evolution of IT: What’s really holding IT back?
Please join the ongoing series—and the conversation. www.kpmg.com/us/CIOagenda To register for Webcasts and read related insights
Next in the series: July 16, 2013: The Business of IT: The Need for Change Replay (and the source for this poll): Evolution of IT: Creativity, Flexibility, and Operational Discipline
Evolution of IT: What’s really holding IT back?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
Contact Us Matthew T. Bishop
Partner, CIO Advisory [email protected]
+1 (214) 840-2749
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.