The report is the result of 490 face to face interviews with global CIOs representing all industries. The report highlights that despite a 15%average cut in IT budgets, CIOs see the economic context as an opportunity to show the true value of IT and to further improve IT industrialisation. Their industrial model will nevertheless be challenged by growing technologies and business models around Cloud Computing and Software/Infrastructure as a Service. Information Lifecycle Management is the next innovation challenge for CIOs and their corporation. CIO’s will have to invent a new model and governance to lead the charge on getting value out of the information assets of their corporation. The report also identifies 3 types of IT organisations among which “Digital winners” have been at the forefront of the new industrialisation challenges, have a significant impact on the innovation of their corporations and have addressed the information challenge across their organisation.

2009: IT budgets shrink, expectations grow

The 2009 economic downturn had a significant impact on IT budgets, with almost three quarters of CIOs (70%) reporting a decrease. On average, IT budgets dropped by 15%. Perhaps more surprisingly, CIOs say they are using the crisis to show the value of IT for their companies, by giving priority to projects that contribute more to the business or taking advantage of new market conditions.
Digital Winners suffered less from the economic downturn

Three quarters of CIOs surveyed believe their company is positioning their IT function as more than a technology utility, whose primary objective would be to roll-out technology components at a low cost. The Global CIO Report 2009 distinguishes three different profiles of IT functions, according to their level of maturity:
• Technology Utility (24%): IT is managed as a pure utility;
• Service Centre (39%): IT assets are packaged to provide a service to the business;
• Business Technology (37%): IT is a key asset for information leadership. Industries where the Business Technology profile is most widespread are banking, insurance,media/entertainment and telecommunications. According to the survey, to become DigitalWinners companiesmust adopt the Business Technology profile. CIOs who adopt the Business Technology profile have proven the value of bringing IT closer to the business. Unsurprisingly, they also suffered less fromthe economic downturn than the two other profiles: Service Centre and Technology Utility. Industrialisation at the core of IT practices but challenged by newbusinessmodels and technologies
According to the participants, industrialization is beingmanaged effectively. Amajority of CIOs (91%) said IT projects are prioritized according to business strategy and economic impact, while 93% said IT functions use indicators to follow up the availability of IT infrastructure and business applications and 87% said IT functions set up a strategic IT plan for 3 years.
This increased focus on IT industrialisation is expected to be challenged by the developments around cloud computing, infrastructure and Software as a Service (SaaS) which provide new alternatives to traditional architectures and disrupt the ‘make or buy’ policies CIOs have developed for years.