1. 2015 SOCIETY OF INFORMATION MANAGEMENT (SIM) IT TREND STUDY Dr. Vess L. Johnson 1 Contact Information: Vess L. Johnson Assistant Professor / MIS Coordinator University of the Incarnate Word vljohnso@uiwtx.edu

2. AGENDA  The Society of Information Management (SIM) IT Trend Study  Most Important IT Management Concerns  Largest IT Investments  Skills / Capabilities  Budgets  Staffing  University of the Incarnate Word - Institute for Advanced Data Analytics  Rationale  Vision  Education  Research  Collaboration  Questions 2

3. TREND STUDY  Joint project between academia and industry  Goal is to identify key issues, spending priorities, and identify challenges facing the IT leaders and the industries as a whole  Study began in 1980  This year emails were sent to over 5300 SIM members  1218 individuals responded  486 CIOs  785 unique organizations 3

4. MOST IMPORTANT IT MANAGEMENT CONCERNS OF ORGANIZATIONS 4

5. ORGANIZATION’S MOST IMPORTANT IT ISSUES 5 IT Management Concerns/Issues 20152014201320122011201020092008200720062005 Alignment of IT and/with the Business 11121321211 Security/Privacy22798998632 Speed of IT Delivery/IT Time- to-Market 35 Combined with “Velocity” in 2013 and “Agility” through 2012. Innovation48 Introduced in 2014. Productivity/Efficiency (Business) (a) 543141174 IT Value Proposition to the Business 66 Introduced in 2014. Agility/Flexibility (IT) (b)713 Introduced in 2014; “Architecture Agility” in 2008 (23) Cost Reduction/Controls (IT) (c) 817551085745 Agility/Flexibility (Business) (b) 932322313177 Cost Reduction/Controls (Business) (c) 1094 Combined with “Business Productivity” in prior years.

6. IT LEADER’S TOP 10 PERSONALLY MOST IMPORTANT IT MANAGEMENT ISSUES Most Important/Worrisome Concerns to the IT Leader201520142013 Security/Privacy 1 12 Alignment of IT and/with the Business 2 31 IT Talent/Skill Shortage 3 23 Speed of IT Delivery/IT Time-to-Market 4 49 Agility/Flexibility (IT) (b) 5 16 Credibility (IT) 6 18 Business Continuity (c) 7 134 IT Value Proposition to Business 8 5 CIO Leadership Role 9 1410 Disaster Recovery (IT) (c)9104 6

7. COMPARING PERSONAL & ORGANIZATIONAL CONCERNS 7 IT Management Issues Most Important or Worrisome to IT Leaders (2014) Most Important to their Organizations (2014) Security/Privacy1 (1)2 (2) Alignment of IT and/with the Business2 (3)1 (1) IT Talent/Skill Shortage3 (2)14 (18) Speed of IT Delivery/IT Time-to-Market4 (4)3 (5) Agility/Flexibility (IT)5 (16)7 (13) Credibility (IT)6 (18)20 (30) Business Continuity7 (13)15 (22) IT Value Proposition to Business8 (5)6 (6) CIO Leadership Role9* (14)31 (34) Disaster Recovery (IT)9* (10)23 (27) Innovation11 (12)4 (8) Cost Reduction/Controls (IT)21 (30)8 (17) Agility/Flexibility (Business)25 (17)9 (3) Productivity/Efficiency (Business)32 (24)5 (4) Cost Reduction/Controls (Business) 40 (33)10 (9)

8. LARGEST IT INVESTMENTS 8

9. LARGEST IT INVESTMENTS OF THE ORGANIZATION 9 Information Technologies 20152014201320122011201020092008200720062005 Analytics/Business Intelligence/Data Mining/Forecasting 11111112223 ERP (Enterprise Resource Planning) 2343333146 5 Security/Cybersecurity3714 118 8 1 Application/Software Development 44611 CRM ( Customer Relationship Management ) 56255913 Data Center/Infrastructure62 Cloud Computing (e.g., SaaS, PaaS, IaaS) 75322517 Network/Telecomm89812 Legacy Applications91516 Virtualization1011131572

10. MOST WORRISOME TO IT EXECUTIVES 10 Information Technologies 201520142013 Security/Cybersecurity112 Analytics/Business Intelligence/Data Mining/Forecasting221 Disaster Recovery/IT Continuity Planning333 Cloud Computing (e.g., SaaS, PaaS, IaaS)464 Innovation/Disruptive Technologies57 Data Center/Infrastructure610 ERP (Enterprise Resource Planning)799 Integration847 Application/Software Development9515 Legacy Applications1078

11. COMPARING INVESTMENT AREAS 11 Information Technologies Largest IT Investments ITs That Should Get More Investment ITs Most Personally Worrisome Analytics/Business Intelligence/Data Mining/Forecasting 112 ERP (Enterprise Resource Planning) 2137 Security/Cybersecurity 321 Application/Software Development 479 CRM (Customer Relationship Management) 5814 Data Center/Infrastructure 6166 Cloud Computing (e.g., SaaS, PaaS, IaaS) 734 Network/Telecommunications 82520 Legacy Applications 93210 Virtualization 103431 Integration 11148 Collaboration Tools 131021 Disaster Recovery/IT Continuity Planning 1443 Big Data 16613 Master Data Management 20915 Innovation/Disruptive Technologies 2355

12. SKILLS / CAPABILITIES 12

13. TOP TECHNICAL SKILLS / CAPABILITIES 13 Technical Skills or Capabilities Percentage Selecting n = 785 unique organizations Most Difficult to Find Most Important to Organization Analytics/Business Intelligence/Big Data/Data Scientist 12 Security/Cybersecurity 21 Data/Information Architecture 33 Functional Area Knowledge 44 Enterprise Architect 56 Application/Solution Architecture 65 Agile software development 78 ERP (Enterprise Resource Planning) 88 User Interface/User Experience/Usability Architect 911 IT Project Manager 106 Cloud 1310

14. TOP SOFT SKILLS / ATTRIBUTES 14 Soft Skill or Personal Attributes Percentage Selecting n = 785 unique organizations Most Difficult to FindMost Important to Organization Strategic Thinking/Strategic Planning12 Leadership/Providing Leadership21 Systems Thinking/Holistic Thinking37 Business Analysis43 Change Management (Organizational)54 Innovation/Innovative65 Problem Solving78 Emotional Intelligence/Empathy813 Communication (Written)914 Decision Making911 Project Management129 Collaboration with Others136 Customer Service1510

15. BUDGET 15

16. FINANCIAL OVERVIEW  The average annual revenue of the responding organizations was $6.23 billion (median $500 million)  Total revenues reported were nearly $5 trillion  On average, IT spending accounts for 5.3% of revenue 16

17. PERCENTAGE OF REVENUE ALLOCATED TO IT BUDGET 17

18. SPENDING TRENDS – BY COMPANY 18

19. IT SPENDING CATEGORIES 19

20. STAFFING 20

21. PERCENT OF ORGANIZATIONS REPORTING CHANGES IN NUMBER OF INTERNAL IT EMPLOYEES 21

22. OUTSOURCING / OFFSHORING 22 Offshore IT spending that is Outsourced Outsourced IT spending that is offshore vs domestic

23. PERCENT OF ORGANIZATIONS REPORTING CHANGES IN TOTAL IT SALARIES 23 Average Increase 2014: 2.13% 2015: 4.32% 2016: 4.59% (projected)

24. CHANGES IN AVERAGE IT SALARIES  Average increase in IT salaries for 2015 was 3.37%  Projected increases for 2016 are 3.72% 24

25. FULL-TIME IT EMPLOYEE TURNOVER RATE 25

26. INSTITUTE FOR ADVANCED DATA ANALYTICS 26

27. RATIONALE: GROWING NEED  #1 in investment for the last 7 years  Most difficult skill to find for employers  #2 – most important to the organization 27 Information Technologies 20152014201320122011201020092008200720062005 Analytics/Business Intelligence/Data Mining/Forecasting 11111112223 Technical Skills or Capabilities Percentage Selecting n = 785 unique organizations Most Difficult to Find Most Important to Organization Analytics/Business Intelligence/Big Data/Data Scientist12

28. OVERWHELMED WITH DATA Data impacts just about everything that we do. 28 Data Deluge Hospital Patient Registries Electronic Point-of- Sale Data Stock Trades OLTP Telephone Calls Catalog Orders Bank Transactions Remote Sensing Image Processing Tax Information Airline Reservations Credit Card Transactions, etc. We are drowning in data, but starving for knowledge!

29. APPLICATION AREAS  Customer Relationship Management  Effectiveness of marketing campaigns, churn analysis, cross/up-selling, time-variant associations between products/services, etc.  Banking / Financial  Automate loan approval, fraud detection, optimizing cash reserves/cash flow forecasting, forecasting market fluctuations, identifying fraudulent trading activities, etc.  Retail and Logistics  Inventory/supply chain management, store layout optimization, effectiveness/tuning of sales promotions, seasonal and environmental impact on product consumption, etc.  Manufacturing / Maintenance  Enabling condition-based maintenance, optimize manufacturing capacity, continuous product quality improvement, etc.  Insurance  Claim forecasting, market segmentation / optimization, identification of fraudulent claim activities, etc. 29

30. APPLICATION AREAS  Computer hardware and software design  Preventative maintenance, identification/filtering of web content, detect/predict security breaches, etc.  Healthcare / Medicine  Lifestyle management, cost-benefit analysis, resource allocation, improving survivability, genomics, diagnostics, pharmaceutical testing, etc.  Other areas  Entertainment Industry  Government and defense  Travel industry  Homeland security and law enforcement  Sports  Science and engineering  Education  Etc. 30

31. EXTRACT INFORMATION TO EFFECTIVELY AID IN DECISION MAKING?  Amazon Cloud – Cyber Monday 2013: 36.8 million items were ordered (426 items per second)  You Tube – More than 1 billion users and 300 videos uploaded every minute  Twitter – Typical posting volumn exceeds 500 million tweets per day (5,700 per second)  August 2013 – 143,000 tweets were posted in 1 second  US – Debit / Credit Card Transaction (2012)  Credit Card transactions (total) – 26.2 billion  Debit Card transactions (total) – 41.4 billion  2013 Inside of Ebay  500 million active live auction listings  Split into 50,000 categories  More than 100 million active users generating 100 TB of new data per day  90 Petabyte Data Warehouses 31

32. INSTITUTE OF ADVANCED DATA ANALYTICS VISION  Education  Added a Business Intelligence / Data Analytics component to our undergraduate, MBA and DBA programs  Certificate program for working professionals in Business Intelligence / Data Analytics  Research  Work with businesses in San Antonio and south Texas on problems related to big data and advanced analytics  Provide students with the opportunity to solve real problems and gain real world experience  Collaboration  Community where people can come together to share ideas and find solutions to problems 32

33. QUESTIONS 33