The 3rd Platform disruption — cloud, mobility, Big Data/analytics, and social business — increases pressure on most businesses to transform. While IT organizations have worked hard over the years to learn how to cope with changes, the current rate of acceleration and the order-of-magnitude increases in every measure of volume present the CIO with a seemingly impossible challenge. With traditional approaches, IT organizations are too slow, while business organizations need speed. Line-of-business (LOB) executives are taking charge of their destiny, and the CIO needs to think about aligning to the 3rd Platform to drive agile, innovative, and real-time value to the business.
A recent IDC Business Technology study of 1,227 technology buyers in the business shows that business leaders are taking control of their technology because it is integral to their outcomes; 43% of the business managers IDC surveyed reported that they are driving their own tech projects because they are comfortable with technology. Business funds 61% of technology projects — with or without the participation of IT.
Source: IDC North American Line of Business Technology Survey, April 2015
Q: When thinking about the total money your functional areas will spend on external technology initiatives in 2015, how would you divide these expenditures?
IT is currently accountable for 39% (IT Projects 19% and Joint IT and Business Projects 20%) for the purposes of IT infrastructure. The remaining 61% on the right hand side of the graphic is largely spending on technology services and applications by the business directly, with minimal consultation with the IT department.
From both the IT and LOB perspectives, there is strong confirmation that Line of Business will be controlling much more of the IT budget within 2 years, or by 2017.
This is a time of great challenges and opportunities for CIOs, who find themselves at a crossroads. Once again, the future of the company is at stake, and the role of the CIO and future of the IT organization are also in question. CIOs must decide how each of the 5 key decision imperatives explored in this iView will shape their future. To make the best possible decisions, CIOs will have to understand the IT impacts and find the necessary insights.