Survey of CIOs on cloud, consumerisation of IT/BYOD, big data and social media/collaboration http://www.technology-perspectives.com/

1. Fujitsu Technology
Perspectives
CIO Research
Office of the CITO, International Business
COMMERCIAL IN CONFIDENCE © Copyright 2012 Fujitsu Services Limited

2. www.technology-perspectives.com
1 COMMERCIAL IN CONFIDENCE

3. We asked CIOs…
To provide an assessment of the
business impact of four „mega trends‟:
Cloud Computing
IT Consumerisation
Big Data
Social and Collaboration
Their opinion of how the role of the CIO
and business functions will change in
driving the adoption of these
technologies
Their reaction to the trends presented in
Fujitsu Technology Perspectives

4. Method of study
Interview based research, conducted with CIOs on a one-to-
one basis in March and April 2012
Interviews followed an intimate, conversational format
conducted by business peers, based on a set of guidelines
designed to get real, honest and insightful responses (and
deliberately not a questionnaire format)
Respondents selected from a representative sample of
business sectors, a variety regions in UK, Europe and the US
Respondents from major blue chip organisations responsible
for IT budgets from tens of millions dollars to billions of dollars
Research conducted completely independently of any
customer relationship to Fujitsu (mostly organisations are not
Fujitsu customers)
The study deliberately used a small sample in order to „deep
dive‟ into the views and opinions of the CIOs

5. Respondents
Sector Region
Automotive Europe
Financial Services USA
Government UK
Legal UK
Manufacturing (1) Germany
Manufacturing (2) Global
Media USA
Retail Europe
Telecom Global
Utility (1) UK
Utility (2) UK
Note CIOs sampled all represent major blue chip organisations / household names.

6. The findings
1. Assessment of the business impact
of the four „mega trends‟
2. How the role of the CIO and business
functions will change
3. Reaction to the trends presented in
Fujitsu Technology Perspectives

7. „Megatrend‟ 1: Cloud Computing
Pay-as-you-go services that transform the delivery of
infrastructure and applications within the enterprise
and its external channels
6 Copyright 2012 FUJITSU

8. Cloud Computing common themes
All bar one of the sample are already engaged in
some form of cloud activity
All expressed a view that cloud is vendor hype
Cynicism that tier 1 vendors can be fully
supportive of cloud when it breaks their own
business models
Many have private clouds, one in the sample is
acting as a cloud provider
Nobody willing to put customer data, new product
details or personnel information in the cloud
Loathe to use cloud for anything other than „non-
core‟ apps
A vendor that could establish confidence in a
„totally secure‟ global offer would be unique and
attractive

9. Cloud Computing individual comments
Sector Response
Manufacturing (1) Cloud is “old hat”
Media “Do people really talk about cloud anymore?”
Utility (1) Enjoy the vendor independence that comes from cloud
and switch frequently
Financial Services “Bankers don‟t trust IT vendors”; only one of sample not
currently consuming from cloud but plan to do so over
next 2-3 years
Manufacturing (2) See vendors conflicted between cloud offerings and
traditional hardware & services
Government Acting as a cloud provider to other government
departments
Telecom Have found cloud cuts implementation time for new
business initiatives by 80%

10. Cloud Computing in summary
Corporate take up is now a reality
Not yet mainstream across the board but
specific offers within cloud are attractive
Private cloud rather than public cloud and only
for non-core applications or platforms
CIO and business are working together to
implement these technologies
CIOs claim the real business benefits are speed
to implement, lower costs and location
independence
Concerns are security issues, loss of control,
loss of IP, compliance and internal governance
Major opportunity for vendor who can
demonstrate and deliver guaranteed secure
services

11. „Megatrend‟ 2: IT Consumerisation
The rise of the mobile device and the changing
relationship between the end user and the IT function
by introducing greater degrees of freedom
10 Copyright 2012 FUJITSU

12. IT Consumerisation common themes
All bar one of the respondents have developed
„Bring Your Own Device‟ (BYOD) policies
CIOs perceive this as the fastest moving of the
mega-trends and a major area of focus
Adapting to the trend seen as key to the
survival of the central IT function
In many cases employees are given a one
time payment and guidelines issued over
range of devices
Path of evolution identified starting with the
simplest apps first, and desktop ahead of
remote devices
Central IT no longer has the overhead of
monitoring and evaluating new equipment

13. IT Consumerisation individual comments
Sector Response
Manufacturing (1) BYOD has made integration of new companies (M&A) much
easier and are seeing benefits from economies of scale
Utility (1) iPads are standard equipment for field engineers, who take
better care of them and therefore been able to replace
„ruggedised‟ laptops
Financial Services Only one of sample not to implement BYOD
Legal With BYOD, they now depreciate hardware over 4 yrs instead of
18 months, dramatic savings
Manufacturing (2) IT strategy retracts perimeter back to the data centre, „Apple-
style‟ lockdown of user devices the new philosophy
Government View IT consumerisation as both an opportunity and a threat
Telecom Insist on their own devices, have „solved‟ security issues with
encryption and remote delete functionality

14. IT Consumerisation in summary
Majority of sectors are embarked on a BYOD
strategy
Consumerisation has largely been forced on
IT by the business
Some security concerns exist, but most have
implemented in-house monitoring technology
Key to success is well defined standards
Savings are realised from the central
functions, as well as from the overall cost of
the estate
Consumerisation is revolutionising the way
the enterprise works
Fastest moving trend; 5 years ago this was a
„no-go‟ area for CIOs

15. „Megatrend‟ 3: Big Data
The application of new analytical techniques to large,
diverse and unstructured data sources to improve
business performance
14 Copyright 2012 FUJITSU

16. Big Data common themes
Some CIOs regarded as a hyped term,
others were unfamiliar with it, a mixed view
Responses very sector specific –
manufacturing & utilities embracing, retail &
financial services ambivalent
Structure and format of corporate data is a
major barrier to exploiting
Fear there will be too much data and
duplication of data from SaaS and CIOs
will be saddled with fixing the mess
Mixture of strategies from ignore to buy in
from outside to build in-house & exploit
new business
Most CIOs are happy to „sit this one out‟
and leave to others

17. Big Data individual comments
Sector Response
Manufacturing (1) Exploring advanced BI techniques & looking to acquire tools
to exploit vast corporate information
Media Cynical about the business value in return for what would be
a substantial investment
Utility (1) Already thriving on data, maintain masses of data for
forecasting supplier demand
Financial Services Their data is already structured, no need for „big data‟ apps
Legal & Government See the challenge as how to connect experts and collate data
from plethora of regulatory sources; buy not build
Utility (2) Interested in exploiting source and operating data together
but don‟t see as a game changer
Tobacco manufacturer Concerned about unstructured data and multiple data sets
and are monitoring developments in this area closely
Clothing retailer Ambivalent, don‟t see the need for interpretation of mass data
Mobile network View as a potential source of revenue; regulated to store 22
petabytes of data, exploring possibility of selling analytics

18. Big Data in summary
Not yet fully understood by the CIO
community
Some CIOs view Big Data as a threat rather
than a benefit
Most agree that more BI analytics would be
beneficial to the business
Some scepticism about the availability of tools
Larger organisations view analytic data as a
source of additional revenue
Fears exist about the authenticity of
consolidated data
Retail and finance sectors not convinced of
benefit
Not a „show stopper‟ in terms of business
change

19. „Megatrend‟ 4: Social and Collaboration
Exploiting the power of social networks and virtual
collaboration tools to enable new dialogues and
insights both externally and internally to the business
18 Copyright 2012 FUJITSU

20. Social & Collaboration common themes
Respondents in various stages of policy and
strategy regarding social media
Having previously fought, most now allow
Facebook, Twitter, Ebay, YouTube and are
quick to cite successes
CIOs feel they can‟t contain the march of social
media in face of „user power‟
Significant business risks, some reported losses
from negative social media coverage
CIOs are beginning to exploit collaboration tools
to good effect
Telco and manufacturing are using collaboration
for 24 hr design around globe in 8hr shifts
Least hyped of the trends with many sectors
now just „getting on with it‟

21. Individual comments on Social Media…
Sector Region
Media Have experienced revenue loss from negative
Twitter campaign; but product marketing moving
strongly into social space
Utility (2) Views media strategies and tools as means of
increasing communications and broadening access
to knowledge to partners
Manufacturing (2) Exercising restraint after Facebook campaign drew
criticism from public & media
Retailer Yet to be convinced of business value and have
blocked Facebook & Twitter internally, but are
engaged in a series of trials to develop a strategy
Automotive Recently appointed a head of social media, used
Facebook to launch new car and encourage Twitter
comments on their products

22. Individual comments on Collaboration…
Sector Region
Manufacturer (1) Believe that virtual teaming, mobility and global
working will dramatically improve business operation
in emerging markets such as Asia
Media Little or no reason to deploy these tools at present
Utility (1) Make use of Yammer and have developed an in-
house tool called to enable virtual working
Financial Bases much of its operation around collaborative
Services working, but only internally
Legal & Acknowledge there are great business efficiency
Government gains and are experimenting internally
Automotive Make use of Yammer
Telecom Enable global collaboration of teams of experts to
solve problems or project work through in-house tools

23. Social & Collaboration in summary
Sector variance, some say „do as you wish‟
some say „never‟
Change is being led by the business
Recognise opportunity for product research
and product launch, but also risky
Conscious of underlying security risk
Many see social, mobile & cloud as linked and
a single opportunity
Opportunity to use collaboration tools to
globalise the business, break silos and bridge
diverse culture
Technology has delivered internal benefits of
time, location independence and optimised
skill-sets, but belief is that tools are still
immature

24. CIO ranking of the „mega-trends‟
IT Consumerisation: the fastest
Higher moving trend, most have now
take-up / embarked on a BYOD policy
maturity
Cloud: corporate take up a now
reality, but not across all offerings,
specific offers are attractive
Social and Collaboration: some
sector variance, change is being led by
the business
Big Data: A mixed view, some see
as hyped, some are unfamiliar; sector-
specific take-up

25. The findings
1. Assessment of the business impact
of the four „mega trends‟
2. How the role of the CIO and business
functions will change
3. Reaction to the trends presented in
Fujitsu Technology Perspectives

26. The trends challenge traditional CIO KPIs
Challenges
CIO KPI 1
To provide the functionality the „Pay as you go‟ enables the
business needs to time, spec, business to find and purchase
budget its own solutions
CIO KPI 2
Cloud, BYOD and the opening
To ensure the security and
of social media challenge
integrity of IT is up to the mark
traditional security models
across the enterprise
CIO KPI 3
Control of IT budget no longer
To demonstrate to management, an excuse as business units
business users and shareholders buy direct from vendors
that IT budget is under control
2 out of 3 is not good enough, and results in dismissal of the CIO

27. Four styles of maturity of the IT function
Technology can enable the business
Dynamic IT to achieve new objectives, for
example a move to another sector
NEW
Increasing maturity
Functionality can be easily added,
Cost Efficient IT reduced and measured enabling
businesses greater flexibility and
freedom
Multiple point solutions implemented
Chaotic IT to address individual business
requirements; tech silos difficult to
integrate and manage
TRAD
80% of resources spent „keeping
Legacy IT the lights on‟, IT viewed as a
„necessary evil‟ and impacted by
annual budget cuts

28. Modeling the IT organization
Cost Efficient Dynamic IT
Strong IT The CIO is a
empowerment business value
The CIO is a
commodity provider enabler
Mandate
Chaotic IT Legacy IT
Weak
The CIO is a failing The CIO is a failing
empowerment
commodity provider business partner
IT as a cost centre IT as a business enabler
Objective

29. New technologies enable progression
 By applying new
technologies there is a
Strong natural pull from the
empower- legacy to chaotic and to
Cost Efficient
ment Dynamic IT cost-efficient and even
IT the dynamic state
 New technologies
enable interim steps to
Mandate be bypassed and for
the first time desired
state is attainable
Weak  As corporate IT is seen
empower- Chaotic IT Legacy IT to be providing cost-
ment
effective joined up
solutions it will be
granted greater
empowerment
IT as a cost centre IT as a business enabler
 Not all sectors aspire to
Objective reach the dynamic state

30. Plotting our respondents
Key
AM Automotive
Strong FS Financial
empower- Cost Efficient Services
ment Dynamic IT G Government
IT
L Legal
AM U T MD Media
MF Manufacturing
Mandate
R Retail
MF T Telecom
MD U Utility
Weak Chaotic IT Legacy IT
empower-
ment
L
R FS
G
Note with the small
IT as a cost centre IT as a business enabler sample size, these
may not be indicative
Objective of wider sector trends

31. Individual comments on the CIO role (1)
Sector Region
Manufacturing (1) Expect to remain a cost centric centralised function providing
services to the business, no change anticipated in future
Media Inevitable shift in power from central IT to business units over a
2-3 year period with technology at the backbone of the business
Utility (1) Acknowledge that „old style‟ IT is gone forever, and view the
CIO role as an „orchestrator‟ rather than service provider
Financial IT function perceived as defenders rather than leaders;
Services perception that as confidence returns to the sector a business
person will take on the role of CIO in orchestrating and
managing resources
Legal Recognise the role of CIO as managing multiple vendors while,
in parallel delivering business change; express apprehension
over skill availability within their preferred timescale
Utility (2) All matters relating to operation of technology will be outsourced
as policy, the new role of the CIO will be as a business partner
with responsibility for business process and investment planning

32. Individual comments on the CIO role (2)
Sector Region
Manufacturing (2) Does not foresee outsourcing as a viable strategy for their
business, instead prefer to pursue a centralised integrated in-
house capability
Government See the role of CIO changing from policeman to facilitator and
from being risk averse to being a risk manager; before this
status is reached a large amount of chaos needs to be
overcome
Retailer Technology must be applied to speed up processes rather than
force major change; focus on investments in tools that improve
timelines and the quality of decision making
Automotive Their challenge is to be perceived as bringing harmony to a
disconnected business where IT is viewed as an enabler
rather than an inhibitor
Telecom CIO mission is simple: “to lead the business from behind”; CIO
role will become that of an orchestrator of resource in a 50/50
relationship with the business

33. Challenges, fears and ambitions
CIOs unanimous in their greatest
challenge of planning and implementing
change in complex environments
Failure to demonstrate competence
leads to loss of empowerment and real
anarchy within business units
Universal fears around guaranteeing
security and business continuity
Biggest threat is the impact on the
business of accidental disclosure or loss
of information
General perception is the role of the CIO
will become a 50/50 orchestrator of
prime IT vendors and business units

34. 2002 – „The Peacetime CIO‟
2002 Priorities – ERP, off-shoring,
ecommerce, outsourcing, refresh,
consolidation
CIOs pursuing similar strategies

35. 2012 – „The Wartime CIO‟
2012 Priorities – Mobile? Cloud?
Social? Big Data? BYOD?
Shadow IT? Security threats?
Disruptive technologies, inconsistent strategies

36. The changing role of the CIO
Provider Orchestrator
(builder & (integrator &
operator) co-ordinator)
From Technology Controller… …to Business Enabler
Policeman Facilitator
(controller & (enabler &
enforcer) innovator)

37. The findings
1. Assessment of the business impact
of the four „mega trends‟
2. How the role of the CIO and business
functions will change
3. Reaction to the trends presented in
Fujitsu Technology Perspectives

38. CIO ranking of Technology Perspectives
Higher
Importance
Business Choice: The New
Big ‘I’ Little ‘T’ Social Working
without borders One-size-fits-all
Mobile is Dead,
People First Real-time Insight Crowding Out
Long Live Mobile
Every ‘Thing’ Reshaping
Trading Places Crowding Out
Connected Organisations

39. Want to hear more?
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_1?ie=UTF8&qid=1335255077&sr=8-1

40. For further information
For more information on this survey and the issues it raises or
on Technology Perspectives generally, please contact:
David Gentle (david.gentle@uk.fujitsu.com)
or Mark Locke (mark.locke@uk.fujitsu.com)
Office of the CITO, International Business