Capgemini Consulting the way we see it

Global CIO Survey 2007 – IT Agility

Enabling Business Freedom

Table of Content

Foreword 3

Participating Companies and Organisations 4

Executive Summary 6

Agility 7

Change – Taking the Proactive or Reactive Route 8

Agility – Securing a Competitive Future 10

Agile IT – The Agile Alliance 14

People – The Heart of an Agile IT Organisation 16

Point of View 20 Survival of the Fittest – in Pursuit of Agility

About the Survey – Intention and Method 26

About Capgemini Consulting 27

Design: Fresh Design © 2007 Capgemini Consulting. All rights reserved. Print: Åtta 45 Tryckeri AB

2 the way we see it

Foreword

The escalating rate of business change the world, with representation in all poses a serious challenge to any industries. It is the latest in a series organisation. Proactive businesses able of international CIO surveys under- to manage this changing business cli- taken by Capgemini Consulting. The mate are steaming ahead, watched by 2006 CIO survey (Views on Future their envious peers. These are compa- IT Delivery) was a detailed investiga- nies clearly equipped to react to the tion into sourcing trends, including changing environment in a competi- off-shoring, which provided valuable tive way, capable of turning threats insights to the mind-set of CIOs and into opportunities. Agility, the ability managers of organisations in different to adapt and refocus the business, is regions and industries. The results of the difference between success and this year’s survey suggest that not only failure. is agility a hot topic across the globe but that, even in the IT space, people The purpose of this survey is to with the right mind-set are the key to explore the views of CIOs of major unlocking agility. companies and organisations on the subject of agility and its impact on IT. We thank all the participating CIOs How does the changing environment for taking the time to share their opin- affect companies and organisations? ions with us. Our report offers ideas What does agility mean for a busi- on strategies CIOs might consider ness? How does IT contribute to the when discussing how the changing needs of the business? Is there such a environment is affecting their busi- thing as agile IT? How do IT functions ness and IT operations. We hope that become, or plan to become, more this publication helps you understand agile? current key concepts, opportunities and challenges and that it stimulates The survey is based on one-to-one thoughtful discussion. interviews with over 300 CIOs across

Gilles Camoin Ulf Larson Vice President Vice President Global Practice Leader Sweden

Julie Metelko Kestutis Ivinskis Vice President Principal United Kingdom Germany & Switzerland

Cyril Francois Eric Kruidhof

Design: Fresh Design Vice President Vice President Print: Åtta 45 Tryckeri AB France Netherlands

Global CIO Survey 2007 – IT Agility 3 Participating Companies and Organisations Capgemini Consulting would like to thank all 301 participating CIOs and top managers who gave time to be interviewed for this CIO survey. Besides the organisations listed below, 20 additional companies participated in the survey but requested to remain anonymous.

Business Services • Schuitema • Folksam • ADAC e.V. • Swedish Match Nordic • GE Money Bank • Capio • Systembolaget • Global Payments Europe • Chemia.com member of the Grupa • Tesco Stores • Hypo Group Alpe Adria Chemiczna Ciech Group • TomTom • IGS • Compass Group Europe • Ubid.com • ING Group • Dassault Systèmes • KBC Group Energy & Utilities • Descours et Cabaud • KEVA – Local Governments • Det Norske Veritas • Aare Tessin für Elektrizität Pension Institution • Elior • Aker Kværner • Komerční banka • Atlantic Cooper • Gedas ČR spol. • MAIF • Groupe Vedior France • Direct Energy • Moneris Solutions • JC Decaux • Energinet.dk • Monitise (Morse Group) • La Poste Courrier • E.ON • Mutua Madrileña • Rentokil Initial • Essent • Nasta Insurance • Sitel Iberica Teleservices • EVN • Raiffeisen Bank Romania • Hydro • Robeco Consumer Products & Retail • Lyonnaise des Eaux • SCOR • Ace • MVV Energie • SG Finans • Adidas Group • Neste Oil • Shanghai Pudong Development • Ahold • Petrom Bank • Black & Decker • RTE • Swedbank • Canadelle • Sibelga • TD Meloche Monnex • Coca-Cola • SPIE • Tryg • Conair • Total RM • Unibanka • Coop • Transelectrica • Volkswagen Bank • Crate and Barrel • Ultramar Canada • NCSD Group • DaimlerChrysler • Vattenfall • VÚB • Danone • WestLB Financial Services • Electrolux • Wiener Allianz Elementar • Euromaster • ABN AMRO Services • Fazer Russia • AGF Management Manufacturing • Friesland Foods • Agis • Alfa Laval • Gustav Paulig • Alm. Brand • Alliance One international • Heineken International • AMF Pension • Andritz • Jan Becher - Karlovarská • ATP • Arc International Becherovka • Axa France • Astellas Pharma U.S. • Karl Fazer • Banca Comerciala Romana • Astra Zeneca • KIK Custom Products • Bayerische Hypo – und • Bayer MaterialScience • Marine Harvest Vereinsbank • Boiron • Maxeda • Cardif • Bridgestone Europe • Nestlé • Crédit Agricole Group Belgium • C&D Technologies • Office Max • Crédit du Nord • Canon Europe • PepBoys • Equens • Celestica • Phoenix Pharmahandel • Erste Bank Group • DFAC • Premier Farnell • Experian • Faurecia

4 the way we see it

• Findus Sverige Public, Government & Social • Sykehuspartner Helse Sør • Galderma • AFPA • UNEDIC • Gambro • AGEFIPH • UWV • GEA Group • Amsterdam Dienst Werk en • Vasakronan • Glatfelter Inkomen • Västra Götalandsregionen • Graham Packaging • Buckinghamshire County Council • VTS Police Netherlands • Holmen • Bundesagentur für Arbeit Telecom, Media & Entertainment • Implenia • Bundesministerium des Innern • Interface Europe • Bundesministerium für Finanzen • Dagens Nyheter • IPSEN • Caisse Nationale d’Assurance • Economia • J&J Maladie • Entertainment UK • Kemira • Centraal Bureau voor de Statistiek • Ericsson • Komatsu Europe International • CWI Public Employment Services • Guangdong Telecom • Kverneland • Erasmus University Medical • Microsoft • Lafarge Center • NetCom • Lennox Europe • Försvarsmakten • NMPP • MAHLE International • General Teaching Council for • Orange • McKesson Pharma England • Radio-Canada • Merck • Göteborgs Stad • Sanoma Corporation • NCC Roads • Hessisches Ministerium für • Søndagsavisen • NXP Finanzen • Sony Ericsson • Océ • ICTU Dutch ICT Unit • SUN Media Corporation • Philips • Information Management Group, • Teletext/DMGT • PKN Orlen. the Association of 28th largest • TeliaSonera • Plastic Omnium Dutch Cities • T-Mobile • Renault Trucks • Malmö Stad • Wegener • Messe München • Royal Cosun Travel, Transports & Logistics • RUAG • Ministère de la Justice • ANWB • Saab • Ministère des Affaires Etrangères • Berliner Verkehrsbetriebe • Saint-Gobain • Ministère de l’Economie, des • CargoLine • SAP Finances et de l’Industrie • Finland Post Corporation Itella • Severstal-Avto • Ministerie van Binnenlandse Zaken • GEFCO • SGCI en Koninkrijksrelaties • Hellmann Worldwide Logistic • Skanska Sweden • Ministerie van Economische Zaken • Inex Partners • SKF • Ministerie van Onderwijs, Cultuur • NSB • SNR en Wetenschappen • Posten • Stora Enso • Ministerie van Verkeer en • RATP • ThyssenKrupp Waterstaat • Scandinavian Airlines • UPM-Kymmene • NAV • Schweizer Post International • Virbac • Ofsted • SNCF Fret • AB Volvo • Region Skåne • Stena Line • Volvo Trucks • Rikspolisstyrelsen • Torvald Klaveness Group • Yutong Group • Scottish Parliament • Skatteverket • Transavia • Sociale Verzekeringsbank • Tuko Logistics • Stockholms Läns Landsting • Vopak • Stockholms Stad

Global CIO Survey 2007 – IT Agility 5 Executive Summary

There is clear evidence in the Our findings suggest that agility does We have been a very Capgemini Consulting Global CIO exist and that an organisation is far static company in the past Survey 2007 that the business more likely to succeed if it leads the “ environment continues to change change rather than simply taking a so agility has not been with increased intensity, affecting reactive approach. Equipping both the important. Now we see companies on all levels. 97% of the business and IT for change can give major changes ahead, and organisations in the survey have an organisation a distinct competitive the role of agility is getting experienced major change that forced advantage. them to alter their way of doing more and more important. business during the last three years. But what makes an agile organisation? Increasing uncertainty poses a seri- It should come as no surprise that ous threat to competitiveness in the a significant number of respondents market. Ill-prepared organisations are believe that the ability of the IT func- being forced to change at great effort tion is critical for achieving business and expense. The survey also reveals agility and that central to it all is that companies who are proactive and employee capability. Your people will plan ahead, adapting to ways of doing be the decisive factor in the achieve- business that reflect the uncertain ment of not only business agility but business environment, can success- also agile IT, and in your ability to fully turn threats into opportunities. compete in a fast changing business The Capgemini Consulting Global environment. CIO Survey 2007 suggests that creat- ing agility is the determining factor for how well organisations manage the changing environment.

6 About the Survey – Intention and Method

Methodology and Structure This survey is based on face-to-face interviews with CIOs and other IT executives in 301 companies and organisations in Europe, North America and Asia. 21 countries are represented and the respondents are spread over a wide range of industries. The interviews were conducted between August and November 2006 by senior consultants from Capgemini Consulting.

The average revenue of the surveyed companies is approximately 8 billion euros and the average IT budget is approximately 100 million euros (average IT budget measures 1.25% of total revenue).

Figure 13 Number of interviews per industry

Travel, Transport & Logistics Business Services Telecom, Media & Consumer Products Entertainment 22 15 & Retail 22 46

Public, Government & Social 43 30 Energy & Utilities

71 52 Manufacturing Financial Services

Figure 14 Number of interviews per country

UK & I Central Europe China Spain 32 32 5 6 Eastern Europe North America 33 35

48 68 France Nordic 42

Netherlands & Belgium

26 the way we see it

About Capgemini Consulting

Capgemini, one of the most world’s foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. Through commitment to mutual success and the achievement of tangible value, the company helps businesses implement growth strategies, leverage technology, and thrive through the power of collaboration.

Capgemini employs approximately 68 000 people worldwide and reported 2006 global revenues of 7.7 billion euros. More information about individual service lines, offices and research is available at www.capgemini.com

Capgemini Consulting is the management consulting discipline of the Capgemini Group. We offer transformational excellence through understanding specific customer needs in all business sectors. Based on our strong functional expertise and our ability to accelerate change, we collaborate with customers to design the best strategies and execute the transformation, impacting both business results and growth. Across the globe, Capgemini Consulting has 5,000 management consultants.

Contact us Global Gilles Camoin +33 (0) 1 49675579 Belgium Sanjay Jhamb +32 (02) 708 1111 Canada Marc Finkelstein +1 (416) 365 4512 China Lou Xianghui +86 021 6105 3883 Denmark Daniel Paetsch +45 3977 8594 Finland Jukka-Pekka Riihelä +358 (9) 4526 7337 France Cyril François +33 (0)1 4967 5780 Germany, Switzerland Oliver Bittner +49 3088 7030 Kestutis Ivinskis +49 3088 703257 Austria, Eastern Europe Alexander Kun +43 (1) 21163 8419 René Weichselbaum +43 (1) 21163 8143 Netherlands Eric Kruidhof +31 (30) 689 7545 Rene Schellekens +31 (30) 689 5349 Norway Tore N Hegna +47 2412 8000 Eiulf Lian +47 24127392 Spain Christophe Jean Marc Mario +34 (91) 657 7828 Sweden Ulf Larson +46 (8) 5368 5427 Nicolas Moch +46 (8) 5368 4152 UK & Ireland Julie Metelko +44 (0)870 238 2605 Ivar Sinka +44 (0)870 366 0702 USA Steven Patton +1 (312) 395 8200

Project team Malin Dyrvall (Project Manager), Valérie Brisac, Susan Donaldson, Hans Holmquist, Thorsten Mieze, Nicolas Moch, Ivar Sinka, Alistair Smith, Raphaël Thollot.

Global CIO Survey 2007 – IT Agility 27