The Insiders – Enterprise IT Decision Making in the Adriatics | Media | IDC Adriatics

Major topics:

- Most companies do plan some investment in new IT solutions, but only 1 in every 5 is able to follow a long-term IT strategy and invest accordingly. This essentially tactical approach to IT investments is reflected in the relative position of the CIO within the organizational structure and the the way IT decisions are made.

- The position of the CIO in the IT investment decision making is fairly strong, however it could be more strategic. Only 46% of them are members of the board, reflecting an operative, rather than strategic role of IT at slightly more than half of the large companies in the Adriatics. Accordingly in case of these companies, the IT investment decisions are made by the CEO and the CIO without much involvement or formalized influence of other stake-holders. Since the CIO is not part of the board in these cases it has limited opportunities to position the IT beyond an operative, support function and drive the organization to become more digitally innovative or more reliant on the business value IT can deliver.

- 59% of the large companies in the Adriatics have formalized processes and group decision making for IT investments (Steering Comities). These are typically made up by the CIO, the CEO and the CFO, but CIO's are part of the final decision only in 3 out of 4 cases. While IT is becoming more and more a business issue and more and more IT projects are defined and initiated by the business, line of business directors are still underrepresented in IT investment decisions.

77% of the CIO's claim they have budget entirely delegated to the CIO for which they have independence to decide upon. These budgets make up 44% of the external spending of these companies. This reflects that CIO's continue to play the key role as budget holders and decision influencer despite the increasing role of the business stake-holders.

The overall conclusion is that companies tend to stick to old-school IT investment planning and decision processes. While this approach keeps decisions simple and effective and is in line with the currently typically tactical approach to the role of IT investments and the role of IT in the organization, it deprives the company from the possibility to capitalize more on the business values IT can delivery, such as driving efficiency and increasing innovation. It also limits the opportunity of the CIO to have a closer and more formalized cooperation with the business, which usually yields benefits for the business on a longer run as it creates agility and better response of the IT to the needs of the business.

Question: .Which of the following statements best describes the appetite of your company for IT related investments in 2015?

 

Source: IDC Adriatic IT Buyer's Pulse Survey, 2015

 

 

Question: Which positions are part of your group of decision makers on IT spending?

 

Source: IDC Adriatic IT Buyer's Pulse Survey, 2015