New IDG Enterprise research looks at the evolving role of content in marketing strategies and the IT purchase process — and how making the right moves directly impact its success. As technology becomes central to business growth for organizations across all industries, more IT projects are being driven —and funded — by the business, than ever before. Some see this shift as a threat to the CIO and the rest of the IT team. Although some budgets may be shifting, the IT team’s influence on, and involvement in, technology purchases remains strong.
IDG’s CIO—the executive-level IT media brand providing insight into business technology leadership— reveals the CIO Tech Poll: IT Economic Outlook results for May 2014. The research indicates that the majority of organizations (87%) are increasing or maintaining IT budgets in the coming year, with an average budget increase of 4.9%. Technology budgets will be distributed across core and edge technologies, including mobile, social, CRM and marketing automation.
Edge Technologies Still Gaining Momentum
Core technologies, from infrastructure to network and storage, still receive the largest allocation of technology budgets, however in the past year spending on edge technology has increased by 5% to 32%. This increase is short of the 2012 estimate, where IT leaders anticipated edge spending would hit 39% in the next 1-3 years. One area that is seeing growth is applications. More than half of organizations are increasing spending on applications, which is a 6% increase year over year. Mobile investments are strong, with 47% of IT executives increasing spending followed by outsourced IT services, including cloud, at 40%.
Understanding the Budget Breakdown
New projects and emerging technology trends continue to impact the division of IT spending. In the coming year, 47% of IT leaders will increase spending on new projects. The focus on new projects aligns with overall business goals, with 36% allocating budget to projects that directly contribute to increasing topline revenue at their organization. Enterprises, organizations with 1,000+ employees, are more likely to focus new spending on customer interactions and experience compared to SMB organizations, organizations with less than 1,000 employees.
“Enterprises are not only spending on new projects to help advance their organizations’ goals, they are investing in solutions from new technology companies at a much higher rate than SMBs,” said Adam Dennison, SVP and publisher, CIO. “Enterprises are looking for the best solution and are not worried that those solutions are coming from new companies that could potentially be acquired. This provides new vendors a great opportunity to showcase their agile and innovate technology solutions to help exceed business results.”
IT in Purchase Process Across Organizations
No matter what department is driving the technology investment, 98% of CIOs surveyed reported IT involvement in technology purchases. When the purchase is funded outside of the IT budget, nearly a quarter of respondents categorize IT as the driver for identifying the business need and brings their recommendations to line of business (LOB). Forty-five percent of CIOs say that LOB identifies the technology opportunity and reaches out to IT for feedback and recommendations. It is extremely rare that IT receives zero contact until a problem arises (5%).
To schedule a meeting to review the full results, contact Adam Dennison, SVP/Publisher, CIO firstname.lastname@example.org.
About CIO Tech Poll: IT Economic Outlook Research
The CIO Tech Poll: IT Economic Outlook Research is conducted once a year, among heads of IT, to gauge how current economic conditions are impacting IT spending. The current CIO Tech Poll: IT Economic Outlook was conducted between April 9, 2014 and May 4, 2014 through the CIO Forum on LinkedIn and the CIO customer database. Results are based on 178 respondents who indicated they are the top IT executive at their company or business unit.
CIO is the premier content and community resource for information technology executives and leaders thriving and prospering in this fast-paced era of IT transformation in the enterprise. The award-winning CIO portfolio—CIO.com, CIO magazine (launched in 1987), CIO executive programs, CIO custom solutions, CIO Forum on LinkedIn, CIO Executive Council and CIO primary research—provides business technology leaders with analysis and insight on information technology trends and a keen understanding of IT’s role in achieving business goals. Additionally, CIO provides opportunities for IT solution providers to reach this executive IT audience. CIO is published by IDG Enterprise, a subsidiary of International Data Group (IDG), the world’s leading media, events, and research company. Company information is available athttp://www.idgenterprise.com/.
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Sr. Marketing & PR Manager
IDG News Service
IDG Enterprise—the leading enterprise technology media company composed of Computerworld, InfoWorld, Network World, CIO, DEMO, CSO, ITworld, CFOworld and CITEworld—reveals an enhanced design and greater functionality for CIO.com. The award-winning site incorporates responsive design technology to scale editorial and advertising content to the user’s screen size, whether they are accessing CIO.com with a smartphone, tablet or desktop.
“Technology decision-makers are mobile and want the flexibility to search for information no matter what tools they have access to at that moment,” said Matthew Yorke, CEO, IDG Enterprise. “This consistent experience allows our visitors to get the information they need from CIO.com to keep their businesses agile, no matter when or where a question arises.”
Website Enhancements Include:
- CIO.com enhanced through use of responsive design, including HTML5 and CSS3, to ensure usability and consistency for visitors using smartphones, tablets or desktops.
- High-quality content remains the key focus, while further showcasing the author. Additionally, hand-curated content pages will be incorporated on trending technologies such as Healthcare and Consumer Tech.
- Visually enticing design with more prominent graphics and less pagination for a smoother reading experience, while maintaining ad impression impact.
- Increased integration of social sharing tools for enhanced community building.
- New navigation tools to optimize reader time-onsite, including lists showing what’s trending at the moment, a drop-down menu showcasing what other visitors are reading, and the top stories as selected by CIO editors.
- Single, searchable “Resource Library” supporting all types of lead-generation content.
- Shared functionality across IDG Enterprise sites for seamless execution of banner ads, lead generation and native advertising, making promotions more effective.
CIO.com’s editorial voice, content and design remains unique to the brand, while functionality has been aligned across IDG Enterprise sites including back-end capabilities enhancing search functionality and digital asset management for displaying more images and video content. Navigation has migrated to a menu icon, next to the website logo, where visitors can navigate to key sections. Ads and promotional units are highlighted in a “deconstructed” right rail optimizing effectiveness and native advertising will be threaded intuitively throughout the site.
“The recent changes support the goals of CIO.com in that it is now more of a community for our readers to engage with our award-winning content as well as with their peers & industry leaders socially,” said Brian Carlson, editorial director/editor in chief, CIO.com. “The new site emphasizes our trusted, expert writers who our audience looks to when investigating technologies for their day-to-day needs.”
IDG Enterprise’s CIO—the executive-level IT media brand providing insight into business technology leadership— is proud to announce the 2014 CIO 100 Award winners. The 27th annual awards program recognizes 100 organizations that have distinguished themselves by creating business value through the innovative use of IT. The winners will be honored during a gala awards dinner and ceremony at the CIO 100 Symposium, being held August 17-19, 2014 at the Terranea Resort in Rancho Palos Verdes, California.
“For nearly three decades, our CIO 100 Awards have celebrated the innovative use of technology to deliver genuine business value,” said Maryfran Johnson, editor in chief ofCIO magazine & events. “Our 2014 winners are yet another outstanding example of the transformative power of IT to drive everything from revenue growth to competitive advantage.”
Award Winning IT Initiatives and Beyond
In addition to honoring and hearing from the 2014 CIO 100 Award recipients, more than 300 CIOs and senior IT executives will discuss proven strategies and best practices with other leaders, shaping their business agendas, IT strategy and executive career path for the year to come. Woven into sessions throughout the three day symposium are discussions on enterprise mobility, big data/analytics, risk management, cloud, social/collaboration tools, and disruptive technologies. Collaboration across the C-suite and the challenge of transitioning to a digital enterprise will have a special focus at this year’s event, which also features opening keynotes by Tom Davenport, author of “big data @ work,” and Forrester Research’s Ted Schadler, author of “The Mobile Mind Shift.” The symposium concludes with an awards ceremony recognizing the 2014 CIO 100 winners. The full 2014 CIO 100 Symposium & Awards Ceremony agenda can be viewed here.
“Disruptive technologies are drastically changing the technology landscape and CIOs are challenged to continue to drive business value and competitive advantage utilizing these technologies. The CIO 100 winners continue to impress me with their innovative vision and ability to execute,” said Adam Dennison, senior vice president & publisher of CIO. “CIO 100 attendees come to the CIO 100 event to learn from their peers and find solutions to drive their own innovations. CIO 100 sponsors find this a valuable environment to congratulate their customers, and to showcase a robust portfolio of solutions that can help bring technology vision to reality, solidifying and creating strategic partnerships.”
Click to see the full list of 2014 CIO 100 Honorees
CIO Dashboard, By Chris Curran
According to a survey by the research arm of The Economist, businesses are slightly more likely to be using the Internet of Things for internal operations and processes than in external products or services. It’s important to draw a distinction between forward-facing IoT and what I call the Internet of Business Things (IoBT). The knowledge, skills and alliances it will take to instrument the business are different than outfitting consumer products with connected technology.
The IoBT is adding sensors to people, places, processes and products across the value chain to capture and analyze information to advance the goals of the organization. By mapping different sensor outputs to enterprise events, companies can take “business activity fingerprints.” These data-driven, digital impressions will enable companies to match actual sensor outputs with pre-tested business scenarios to prioritize and direct resources, improve workplace safety, reduce wasted effort, streamline product and people flows, strengthen relationships with customers and increase revenue.
We’re already seeing companies use sensors to track the movement of customers and the employees who interact with them. Sensors are determining inventory levels so businesses can replenish supplies on the fly. Machines are being developed to detect when an employee isn’t properly trained and shut down in response. Businesses are even embedding sensors into the ID badges of employees to study the dynamics of their interactions to build better teams.
The CIO is the ideal executive in the enterprise to drive conversations with other C-Suite executives as well as business unit leaders about the opportunities and challenges of pursuing the IoBT. Capitalizing on the full promise of the IoBT will require a deep knowledge of the business, data science skills and emerging technology talent. Here are a number of issues that CIOs need to consider as they educate enterprises on how to tap the power of the IoBT:
Mapping Sensors to Actions to Model Behavior
The CIO needs to help enterprises understand which business activities to track and why and how to map sensors to those actions and events to gain insight into operations. For example, if I’m a beverage manufacturer, what can I learn from placing a sensor on a refrigerator door? Knowing that the consumer opened and closed the door is one layer of information. But, if I combine motion sensors, product sensors and temperature sensors, I can gain a much deeper understanding of what’s happening. I can know a customer grabbed a particular item, the temperature of the refrigerator fluctuated and how much time transpired as the activity took place. I can also know the exact moment the refrigerator begins to malfunction. When approached strategically, sensors can empower enterprises to fine-tune their operations like never before.
In our soon-to-be-released Digital IQ survey of over 1,400 business and technology executives, 20% of respondents say they plan to invest in sensors. We feel confident in predicting that the Internet of Things (IoT) or the Internet of Everything will finally begin to take off this year, as futurists have forecasted for years. What remains to be seen is whether or not CIOs will win their rightful place in product design planning and the development of business instrumentation strategy.
Slowly but surely businesses and governments will use sensors to digitize droves of everyday devices and extract infinite amounts of information and insights to gain a competitive edge and garner deeper relationships with customers. Here are a handful of examples we expect to materialize this year:
- Mobile devices will interact with the digital data that surrounds them, giving users the benefits of a true digital assistant
- Low cost sensors will track shopping traffic patterns to enable retailors to improve customer service, streamline operations and lower costs
- Motion and weight sensors will direct drivers to open parking spaces
- Manufacturers will track everything in their supply chains to streamline operations
- City governments will use gunfire locators to sense when a gun is fired and notify authorities
So many marketing solutions are available that it is very difficult for marketers, chief digital officers, and CIOs to have a holistic view of what they have, what they need and why. IDC has recently created a tool to help – The 2014 Marketing Technology Map. This tool provides a visualization of the different technologies needed to support different marketing organizations no matter how small or large, digital or non digital, modern or not. Pictured below is the whole map which presents solutions in four broad categories:
- Interaction: The primary function of these solutions is to be customer facing
- Content: The primary function of these solutions is to facilitate the production and management of marketing content
- Data and Analytics: The primary function of these solutions is to store and produce insights from customer, operations, and financial data
- Management and Administration: The primary function of these solutions is to provide internal communications, workflows, budgeting and expense tracking.
View the map now…
Technology used to be the exclusive realm of the CIO; now, it underpins the work of every facet of every organisation. CMOs want to use digital technology to power their campaigns and sales drives; HR wants to automate payroll and resource management; and so on. IT decision-making is now everyone’s responsibility – but rather than facing extinction, the CIO still plays a crucial role in making sure these decisions are sound.
CIOs need to play to their strengths – and in doing so, help their C-suite counterparts play to theirs. The CIO has deep technical expertise coupled with a holistic view of technology within the organisation; they’re used to ensuring that a new technology won’t wreak havoc across other parts of the system before they invest in it. This puts them in a unique position to both support other line-of-business initiatives, and also ensure compliance and internal control (so that one division’s rapid adoption doesn’t endanger another’s outcomes).
However, this doesn’t mean the CIO should be the policeman of IT; rather they should be partnering with their executive colleagues and seeking to understand their goals better. These goals are often more directly aligned with business growth and efficiency than IT’s, which have traditionally been more of the “keep the lights running” type. If you’re a CMO, the objective of your marketing and social media campaign directly impacts the business’ bottom line – but you also need technical leadership so that your campaign runs smoothly and without downtime.
Mobile/Wireless, Outsourced IT Services (including Cloud), and Hardware Investments Rise
Framingham, Mass. – August 2, 2013 – IDG’s CIO, the executive-level IT media brand providing insight into business technology leadership, reveals the CIO Tech Poll: IT Economic Outlook results for June 2013. The study indicates that IT leaders are seeing increased budgets over the next year, with an overall increase of 4.9%, and that mobile/wireless, outsourced IT services (including cloud) and hardware investments are on the rise. As tech investments continue to rise, IT remains a leader in the tech purchase process and collaborates with line of business (LOB) executives on determining the business need.
Spending on New Projects Rises
CIOs remain optimistic on IT spending in the coming year, with more than half expecting to increase their overall budget.