2018 State of the CIO

CIOs Continue to Report to CEO

60%

50% 47%
41% CIO Reports to CEO
43% 51%
40%

30%
CIO Reports to CFO
23%
20%
CIO Reports to COO
13% 15%
14%
16% 14%
14% 15%
10%
CIO Reports to Corp. CIO 9%
16% 2%
7%
0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Q: To whom do you report?

Source: State of the CIO, 2018 2

 CEO Adds to Innovation/Operations Challenge

Upgrade IT and data security to

avoid cyber attack
36%
Help reach specific goal for
corporate revenue growth
35%
Leading digital business
initiatives
35%

Lead a product innovation effort 21%

Simplify IT 20%

Reduce IT spending 20%

Enable new plan for customer
acquisition & retention
18%
Lead merger integration or due
diligence on a potential…
15%

Q: What are the CEO's top three priorities for you in the coming year?

Source: State of the CIO, 2018 3

 Struggle for IT Talent – Especially in Data & Security

Experiencing Skills Shortages? Security/Risk Management 39%

Business Intelligence & Data Analytics 36%

Cloud Integration 21%

Application Development 20%

Not Sure
16% Enterprise Software (ERP, CRM) 19%

Yes Artificial Intelligence (AI) 18%

No 59% DevOps 17%

25% Cloud Services 16%

Enterprise Architecture 16%

2017
60% Internet of Things 16%

Mobile Technologies 15%

Project Management 14%

Q: Will your organization experience any IT skills shortages during the next 12 months? AND Q: In which areas do you anticipate your organization
will have the most difficulty in finding appropriate skillsets?
Source: State of the CIO, 2018 4
 IT/LOB Tech Budget Collaboration Remains Consistent

55% 57%
2017 54% 2017 57%

Q: What percentage of the total dollars your organization invests in technology products
and services is directly controlled by IT currently? In the next 3 years?

Source: State of the CIO, January 2018 5

 Differing Views on IT’s Role In New Initiatives
Heads of IT LOB

Recommends technology solutions to address business initiatives 73% 1 29% 3

Develops technical requirements 61% 2 31% 1

Collaborates with the functional area/LOB to build business cases

61% 2 26% 5
for new technology initiatives
Negotiates IT supplier contracts 54% 4 19%
Provides the functional area/LOB with project management support
52% 5 28% 4
when implementing a new technology
Recommends ways the business processes can run more efficiently 49% 25%
Performs systems testing and QA for new technology 46% 30% 2

Introduces new use cases for emerging technology 36% 15%

Provides the functional area/line of business with a short list of IT
31% 16%
suppliers for a given solution

Q: When the IT department and the functional area/LOB work on a new initiative, what role does IT typically play?

Source: State of the CIO, 2018 6

 CIOs Wear Many Hats in Digital Transformation
Help us identify which parts of the
37% business could be digitally transformed
Innovation
19% through the use of digital technologies.

22% Identify emerging technologies that could

Technology
25% accelerate our digital transformation.

13% Integrate our digital innovations in to the

Integrate
7% enterprise business systems.

12% Mitigate the security risk of digital technologies

Security
16% by providing a secure IT infrastructure.

Project 10% Manage our digital project

Management 22% implementations.

Technology 6% Identify and vet emerging

suppliers 11% technology vendors.

Heads of IT LOB

Q: What is the single most important role your IT organization could play in your organization’s digital transformation?

Source: State of the CIO, 2018 7

 IT Helping to Prioritize Tech Projects
Improves IT/Business Relationship
IT works with the business units to develop 54%
consensus around prioritization of IT projects 27%
The IT leadership team spends the 38%
majority of its time with the business 20%

IT has improved its IT governance framework

29%
21%
IT employs more agile development 27%
techniques to deliver projects faster 29% Heads of IT LOB
IT requires IT professionals who are assigned to a business unit to 23%
know the business process as well as their business partners 22%
IT helps the business to source technology 23%
outside the organization when appropriate 19%

None of the above

3%
13%

Q: What are the top 3 steps the IT organization has taken to improve its IT/Business working relationship in the past year?

Source: State of the CIO, 2018 8

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