2017 CIO Agenda: CIO priorities for the next year, based on Gartner’s global survey

The leading analyst firm Gartner Inc, survey over 2500 CIOs around the world every year to track what the CIO priorities are for the coming year. They publish their findings as a report titled “CIO Agenda” every year. Here are the top findings from Gartner’s 2017 CIO Agenda.

  • Enterprise IT budgets are increasing, on average 2.2% globally
    • EMEA: 1.4%, APAC: 4.3%
    • EMEA: Formal IT spend is 76% of this budget, while Business Unit spend in IT is 17% and Shadow IT makes up the remaining 7% of budgets.
    • Shift is more towards IT owning less of IT but playing the role of supporter and enabler of IT systems around the company.
  •  Digitalisation spend is increasing: From 18% in 2016 to 28% in 2018 
    • EMEA: 19% in 2016 to 29% in 2018
    • Top performing companies spend on average 33% today on digitalisation and will spend up to 43% in 2018 on similar efforts
  • Digital Ecosystem participation is growing:
    • Average: 49% of respondents participate in an digital ecosystem.
    • EMEA: 50%
    • Top performing companies: 79% of respondents report digital ecosystem participation
  • Digital Ecosystem partners are becoming numerous
    • From 38 in 2016 to 78 in 2018 (CAGR of 43%)
    • EMEA: 63 in 2016 to 127 in 2018 (CAGR 43%)
    • Top perfomers: 78 in 2016 to 143 in 2018 (CAGR 35%)
    • Trailing performers: 19 in 2016 to 62 in 2018 (CAGR 81%)
  • Leaders Run, Buy and Sell through Ecosystems:
    • 70% of leaders run ecosystems, 36% buy through them and 36% sell through them.
    • In EMEA: 64% run, 40% buy and  31% sell through ecosystems
  • Digital Ecosystems are driving more in-house development
    • On average 31% of critical components of a digital ecosystem is built in-house
    • For leaders, this figure goes up to 40% while in EMEA the figure is around 32%.
  • Leaders are investing in BI not ERP:
    • Leaders invest 47% in BI but only 8% in ERP.
    • EMEA: 31% in BI and 30% in ERP
  • Key technlogies will deliver change: The top four technologies that drive change over the next five years are: Advanced analytics (81%), IoT (48%), Digital Security (43%) Business Algorithms (40%)
  • Expect to engage more startups:
    • 78% of leaders engage startups while only 6% ignore them. 65% of those in EMEA engage startups and 21% ignore them.
    • Trailing performers by contrast 45% engage with startups while 45% ignore them.
  • Bimodal IT adoption is increasing, and it has benefits and costs:
  • Adoption is increasing: 68% of leaders use a bimodal approach and in EMEA the figure is around 41%. Only 17% of trailing performers use a bimodal approach.
  • Bimodal IT has benefits and costs: More Innovation is cited by 71% of leaders as a top benefit while additional head count is the top cost cited by 47% leaders. In EMEA Close engagement between business and IT is the top benefit (64%) while technical debt is the biggest cost (41%) .
  • The biggest barrier to success is skills cited by 26% of respondents
  • Analytical skills are in short supply cited by 34% on average, 29% by leaders and 34% by EMEA respondents.
  • Business priorities:
    • 28% of leaders as well as EMEA respondents cite digital initiatives as top business priority while only 6% of trailing performers have this as top priority.
  • Involvement and attitude are key to success:
    • In top performing companies, the CIO, CEO and CFO are well aligned on digital initiatives. On a scale of 1-5 with 5 being most support for digital initiatives, the CIO is at 5, CEO at 4.8 and the CFO at 4.1 in top performers.
    • These three roles are not aligned in trailing companies. On a scale of 1-5, the CIO is at 4.7, the CEO at 3.8 and the CFO at 3.3 showing that CIOS have little support from the CFO or CEOs for driving digital initiatives.
  • Cost and value
  • Leaders prioritize value over cost: Supporting digital business initiatives is more important (approx 90%) than optimizing costs (approx 10%). For trailing performers, optimizing costs is very important (approx 60%) than supporting digital business initiatives (approx 40%).
  • Leaders drive cost efficiencies: 
    • 55% of leaders have cost reduction targets and 76% are close to achieving them. 48% of trailing performers have cost reduction targets and 68% are close to achieving them. In EMEA 56% have cost reduction targets and 70% are close to achieving them.

Here is quick infographic from Gartner summarising this report:http://www.gartner.com/smarterwithgartner/top-organizations-create-digital-ecosystems-infographic/