At Forrester’s North America CIO Forum two weeks ago, Frank Gillett, Chris Mines, and I presented a point--counterpoint debate on “The CIO’s World in 2020.” We debated and analyzed four key dynamics regarding IT and the CIO’s role in the future, and asked the 325 attendees to vote on the outcome they think is most likely to occur. The audience members’ votes were extremely telling:
80% believed that technology would still be differentiating. To set the stage for the audience vote, Frank argued that technology would be so commonplace and readily available via the cloud that a company’s ability to set itself apart via technology would be fleeting at best. I took the opposite side, saying that while much of today’s transaction-based systems will be nothing more than table stakes, systems of engagement-based systems and technologies around analytics and smart products would be central to a firm’s ability to set itself apart in the eyes of customers. The audience overwhelmingly agreed with our call that systems of engagement and other technologies would be differentiating.
85% agreed that most technology would be delivered via the public cloud. I kicked off this point by arguing that technology was too important not to be centrally designed, deployed, and managed by IT. Frank came at it stating that the velocity and variability of change required the use of public cloud-based services. The Forrester call was that companies will architect and deploy business solutions from a growing pool of external as-a-service resources, with IT playing the role of orchestrator.
In Forrester’s latest report, “Tracking The Renegade Technology Buyer,” we uncover the motivations and technology spending priorities of over 1,000 North American and European business executives. The data from the Forrsights Business Decision-Makers Survey was collected in Q4, 2012. Of the 891 respondents that had a budget over US$1 million, 824 spent their own money on hardware, software, telecom or services. Twenty-four percent of the 891 spent over 21% of their budget on technology, accounting for over $US 31 billion in expenditures. Senior management and sales and marketing were the top spending business functions and financial services/insurance and telecom/utilities lead the pack from a vertical perspective.
So why are business leaders carving out part of their own budgets for technology? It’s contrary to what you think. The high business spenders are not doing it because it is faster or cheaper than central IT – they are doing it because they see technology as too important to their success not to be involved. In parallel, senior management is more relaxed in dealing with the technology – 33% of the high spenders say there technology IQ has increased and they are more comfortable working with IT. Another 20% say that their use of consumer technology has changed their expectations of how technology should be used. The consumerization of IT is not just about younger Gen Y staff wanting to bring their own Macs and iPhones to the office; just as or more importantly, it’s also changing the way senior managers drive business and technology strategy.