Harvey Nash / KPMG CIO Survey 2020: Everything Changed. Or Did

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Harvey Nash / KPMG CIO Survey 2020: Everything Changed. Or Did NOW IN OUR 22ND YEAR CIO SURVEY 2020 SURVEY CIO EVERYTHING CHANGED. OR DID IT? HARVEY NASH / KPMG / NASH HARVEY Everything changed. Or did it? Over its 22-year history the CIO Survey is not of a revolution in data, artificial intelligence (AI) and unfamiliar with rapid disruption, or what in finance connectivity. Today, we still are. Before the pandemic, might be called a ‘black swan event’. Not long after understanding the customer was core to business Bev White the survey launched, we charted the bursting of the success. Now it is more necessary than ever. dot.com bubble. In 2008 we witnessed what we CEO, Harvey Nash Group thought would be the world’s greatest recession in To say these are unprecedented times is an overused living memory. phrase, and yet with so much of a yawning gap between what we know and what we need to know, And then a little over a decade later, this happened. A there is not a more appropriate phrase. These are flock of black swans landed on our lawn, and everything indeed unprecedented times. changed. The economy changed. Technology changed. Steve Bates Even the concept of ‘location’ changed. So, it is with this backdrop we bring you the 2020 CIO Survey. With over 4,200 responses recording Global Leader, CIO Advisory Center Or did it? As we piece together the new normal, we the before, the onset and the ongoing effects of the of Excellence, KPMG International will undoubtedly find a lot of the old normal still there. pandemic as they occurred across the world, this year’s @stevebatescio CIO Survey gives you unique, essential insights into the Before Covid-19, people valued face-to-face nature of technology today. conversation. Now, the prospect of meeting in person without asking ‘Are you on mute?’ has never been We hope the report helps you steer yourself and your more appealing. Before, we were at the beginning organisation to success in 2021 and beyond. HARVEY NASH / KPMG NASH HARVEY 5 THINGS TO DO WITH THIS REPORT Rethink See the Hear from Promote mental Compare CIO SURVEY 2020 CIO SURVEY your budget future your peers wellness your sector Read 5 things to consider when Find out what emerging What’s keeping fellow tech Read 5 tips for supporting Read our sector / location budgeting, or re-budgeting. tech is attracting the most leaders awake at night? the mental health of your league tables on page 40. Page 10. investment. Page 15. Page 20. team. Page 30. 2 Contents About the survey 1. Board Priorities and Investment 6 A surge of investment 6 Forecasting is proving hard 9 Remote working becomes a business imperative 9 A unique journey for every organisation 11 2. Managing Technology 13 Trust is the currency of the new reality 13 Emerging tech investments 14 A growing digital divide 15 $¼ trillion 3 million Replaced by robots? 16 Exotic new roles being created 16 combined IT budget* data points** Cyber-security: the attack surface now includes the kitchen table 18 Technology Leader Viewpoints 20 3. Driving Business Performance through Technology 22 Digital leadership is a moving target 22 Digital leaders perform better 23 Cyber-security at the heart of customer trust 24 4. Resourcing the Technology Team 25 Perennial shortages even in a pandemic 25 Making a new deal with employees 27 The mental health challenge 28 HARVEY NASH / KPMG NASH HARVEY 5. Being a Technology Leader 29 4,219 83 22 It can be tough at the top 30 Bringing out the best in people 30 respondents countries years of data The world needs female leaders 31 KPMG Special Report 32 IT in the New Reality *Combined IT budget of this year’s respondents MIT CISR Special Report 36 **From 22 years How to get more value from digital A note about the data in this survey NashTech Special Report 38 We launched the first iteration of this survey in late December 2019 before Creating a ‘talent cloud’ supported by automation Covid-19 was an issue outside mainland China. In March 2020 we paused the CIO SURVEY 2020 CIO SURVEY and data quality survey after collecting 2,791 responses and then launched a new survey that included questions relating to the pandemic, which received a further 1,428 League Tables 40 responses running from May to August. In this report you will see references We compare more than 20 countries and sectors across to both surveys – Pre-Covid 2020 and Covid 2020 – and together they give key data from the CIO Survey. How do you compare? us a unique insight into the before, the onset and the ongoing effects of the pandemic. If no specific data source is quoted in this report, it means the data is taken from the second survey, Covid 2020. 3 CIO Survey 2020 – 8 things you need to know An investment surge Each industry sector is A growing A wave of cyber-crime and budget headaches following its own path digital divide targeted at remote workers Global IT leaders reported a median Unlike previous recessions, where largely While few organisations would have planned Covid-19 caused the mass relocation of workers additional spend of 5% of IT budget to deal sectors ‘rose or fell’ with the tide, sector for something as significant as this pandemic, from the safety of their corporate network to with the Covid-19 crisis. This represents has played a significant and divisive role in some entered the crisis in much better studies, bedrooms and kitchen tables all over the around US$15bn per week during the first how organisations have fared during the shape than others. These digital leaders, world – and the attack surface of organisations three months of the crisis, as organisations crisis. Some organisations are faced with the three in ten organisations with the expanded exponentially. Our research shows pivoted their customer strategies, invested the challenge of finding a viable business most successful digital business strategies, that in addition to cyber-crime challenges in security, and moved a significant part model; for others, the challenge is to deal already had much of the infrastructure faced before the crisis, more than four in ten (41 of their workforce to remote working. The with a surge of demand. Power & Utilities, in place to deal with the crisis and were per cent) have experienced additional cyber- unexpected and unplanned-for spend in both Government, Healthcare and Technology further down the line with implementing security incidents, mainly from spear phishing capital (CapEx) and operating expenditure are investing heavily; Leisure, Non-profit, emerging technologies. When the crisis hit, and malware attacks. This challenge has (OpEx) has left many organisations with Education and Manufacturing are reining digital leaders continued to invest while caused security to become the top technology a headache. CIOs and CFOs are shining a back. Regardless, six in ten feel it will take at their peers cut back, and over time we are investment priority, and for the first time in this bright light on existing spend, keen to prove least three months before they can accurately likely to see a growing divide over digital survey’s history cyber-security expertise has return on investment or to make savings. forecast the future. Boards will need to get and business performance. become the most in-demand skill set. used to the discomfort of uncertainty. HARVEY NASH / KPMG NASH HARVEY A new1 deal for More2 proof that 3The new 4Everything changed. employees business needs diversity technology leader Or did it? With 43 per cent of technology leaders Participation of women in technology At the centre of all this lies the technology There is no doubting the pandemic’s dramatic expecting more than half their staff to leadership remains stubbornly low, although leader. Many of them emerge from this effect on almost every aspect of business and remain working predominantly from home, some headway appears to be happening exhausted, but excited, by the challenges life. But key fundamentals remain. The top organisations are beginning to realise how in Latin America which is benefiting from and opportunities of what has become a priorities for boards did not change with the different a world without location is. In specific programmes designed to get women technology-centric crisis. Over six in ten onset of Covid-19: operational efficiency and recruitment, their potential talent pool is into the world of technology. Looking at report feeling more influential as a result customer engagement, both long-standing CIO SURVEY 2020 CIO SURVEY worldwide. Ensuring that people are engaged, diversity more widely, our research adds of the crisis. This is not reflected in board priorities of the technology leader. While some rewarded and productive in a world where further proof that diverse teams promote membership, which for CIOs is down from organisations will have required a radical physical presence plays less of a role will be better business performance. More than two- 71 per cent in 2017 to 61 per cent now. This change in direction, for most it has served a key factor. Mental health is an issue; 84 per thirds of organisations feel that being diverse decline does not seem to be a concern; to accelerate what was already in place. For cent of technology leaders report they are has improved trust and collaboration in the what technology leaders want most of all some this has actually been useful: “More concerned about their team. Encouragingly, technology team. The survey also hints that the is influence, and this crisis has helped them innovation happened in the last six months our research shows that programmes are flexible nature of remote working may promote achieve that, at least for the moment.
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