2010 SIM IT Trends Survey Jerry Luftman Executive Director and Distinguished Professor Stevens Institute of Technology

Society for Information Management 2 8 HEADLINES State of IT is Resilient 1. State of IT is Resilient Cautious Improvements in IT Spending 3. Cautious Improvements in IT Spending Judicious Increases in Hiring & Salaries; Minimum Downsizing 4. Judicious Increases in Hiring & Salaries; Minimum Downsizing Progressing Towards Pre-Recession Levels 2. Progressing Towards Pre-Recession Levels Working Effectively With Business Partners 5. Working Effectively With Business Partners HR Not a Major Focus Area 6. HR Not a Major Focus Area Do IT Professionals Possess the Right Skills? 7. Do IT Professionals Possess the Right Skills? Offshore Outsourcing Trending Upward 8. Offshore Outsourcing Trending Upward

Society for Information Management 3 Top IT Management Concerns 1 Business productivity and cost reduction 2 Business agility and speed to market *3 IT and business alignment 4 IT reliability and efficiency *5 Business Process Reengineering *6 IT strategic planning 7 Revenue generating IT innovations 8 IT Cost reduction *9 Security and privacy 10 Globalization * Persistent

Society for Information Management 4 Priority of Time Allocated for IT Business Alignment Considerations (2009)

Society for Information Management 5 Priority of Time Allocated for IT HR Considerations (2009)

Society for Information Management 6 1 Business intelligence Business intelligence 2 Virtualization* Virtualization* 3 Enterprise resource planning (ERP) systems 4 Continuity planning/disaster recovery 5 Cloud computing* Cloud computing* Top 5 Application & Technology Investments 2010 * New to top 5

Society for Information Management IT budget in comparison to 2009 (Actual) 65% (48%) (25%) (23%) (52%) 66% ( 75%) (2009)

Society for Information Management IT budget will be in comparison to 2010 (Projected) 73% (*Getting back to pre recession range of >50%) 62% (66%) (65%) (2010)

Society for Information Management IT Budget Allocation (Actual) (2009)

Society for Information Management IT Staff Turnover Rate 2007 Average: Average: Average: Average: Average: Average: Average: Average 5.50

Society for Information Management IT Budget Allocation (Projected) (2010)

Society for Information Management 12 IT Budget allocation for Offshore Outsourcing (Projected) 7.0

Society for Information Management 13 IT budget divided between running existing systems and building/buying new systems (Projected) 2011 (Projected) Percentage allocated to running existing systems Percentage allocated to building/buying new systems

Society for Information Management 14 Anticipated percent of your IT budget allocated for education/training (2011) (2010) 2011 Avg: Avg: Avg: 3.19

Society for Information Management 15 IT Budget As Percent of Corporate Revenue 2010 Average: % 48% (2009: 58.3%) (2009: 41.7%) (2009: 3.83) (2005-9: 3.67)

Society for Information Management 16 IT Budget as % of Revenue by Industry Average: 3.87 Education/Publishing Wholesale/Retail/Distribution (non-computer) Construction/Architecture/Engineering/Utilities Executive Placement/Search Business Services External Services Provider (ESP)/Data Processing Services Finance/Banking/Financial Services/Insurance R & D/VAR/VAD/Systems or Network Integrator Real Estate/Legal Non-Profit Government-Federal/State or Local Hospitality/Restaurants/Travel / Entertainment Computer/Network Consulting Healthcare/ Pharmaceutical/ Medical/ Dental Aerospace Transportation Manufacturing/Process Industries

Society for Information Management IT Staff Salaries in Comparison to 2009 (Actual) 83% (2009: 81%) (2009: 34%) (2009: 47%) (2008: 19%) 58% (2009 : 66%)

Society for Information Management IT Staff Salaries in Comparison to 2010 (Projected) 91% (*Back to pre recession range) (2010: 45%) (2010: 46%) (2010: 9%) 39%

Society for Information Management 19 CIO or Senior IT Executive Reports to Other: Board of Directors, CAO, Deputy CEO, Provost, Executive Vice President, VP Strategy) (2009) [Alignment Maturity]

Society for Information Management 20 How long has your CIO (or senior IT executive) held their position? 48% =< 3 Years 52% > 3 Years (2009: 52%) (2009: 48%) 2010 Average: 5.1 Years 2007 Average: 4.1 Years 2008 Average: 4.3 Years 2006 Average: 3.6 Years 2009 Average: 4.6 Years

Society for Information Management 21 #new entry in the list *75% time non-technical (2009 >74%) How CIOs spend their time

Society for Information Management 22 Your current CIO was hired from Outside of IT (8%): General Management 3%, Marketing 2%, CFO 3% IT: 92% Outside your company: 58%

Society for Information Management IT Organization 2010 IT Organization [ 18.4%;22.2%; 18%; 15.7%] [ 70.4%;67.5%;77%; 74% ] [ 9.5%; 8.8%; 5%; 10.3% ] [2009;2008; 2007; 2006 findings] *2.87 *3.03 *2.64 * Alignment Maturity

Society for Information Management 24 Next Steps Assimilate the data from Europe & Asia Further analysis Publish results (e.g., SIM News, MISQE) Use findings as input for future SIM meetings (Local & National) Consider findings for new Working Groups or Communities of Interest PLEASE FILL OUT NEXT YEARS SURVEY!!!PLEASE FILL OUT NEXT YEARS SURVEY!!!