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The 2016 CIO Agenda
Building The Digital
Platform
Lee Weldon
Dave Aron
Graham Waller

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2,944 CIOs
84 Countries
$11T Revenue
$250B IT Spend

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Insurance
7%
Healthcare
5%
Manufacturing
21%
Education
7%
Retail
6%
Transportation
5%
Communications
3%
Services
11%
Government
13%
Banking
10%
Energy/ Utilities
8%
Wholesale Trade
2%
Media
2%

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13 Case Studies

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42%
60%
77%
Now In 2 years in 5 years
CIO survey (n=344)
16%
25%
37%
22%
31%
41%
Now In 2 years in 5 years
CIO survey (n=609)
Digitalization is Intensifying; The Stakes Are Rising
Private Sector Public Sector
What % of your revenues are digital? What % of your processes are digital?

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Digitalization Is Still Quite Operational;
The Potential Is Much Greater
941 CIO respondents selecting top 3 digital impacts on their business, in order
More Revenues From Better Operations
More Business Through Digital Channels
Tighter Partnerships
Creating New Markets
Engaging and Empowering Employees
Changing the Basis of Competition
Cost Reduction
Expanding to New geographies
Crossing Industry Boundaries 2%
3%
6%
6%
7%
10%
10%
21%
34%
Number 1
9%
11%
39%
20%
40%
26%
37%
48%
66%
In Top 3

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The Technology Opportunity:
Monetize Big Data, Underpinned by the Cloud
No. No. Priority 2016 2015 2014
1 BI/Analytics 39% 41% 50%
2 Infrastructure and Data Center 27% 31% 37%
3 Cloud 25% 27% 32%
4 ERP 21% 26% 34%
5 Digitalization/Digital Marketing 21% 17% 11%
6 Mobile 20% 24% 36%
7 Security 15% 13% 11%
8 Networking, Voice and Data Communications 10% 12% 12%
9 Legacy Modernization 10% 7% 7%
10 Industry-Specific Applications 9% 9% 10%
11 CRM 9% 11% 8%
Note: Percentages represent the proportion of CIOs citing each priority as one of their top three areas of new IT spending.
%

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The Threat Matrix Is Evolving
Choose the Scenario You Feel Is the Greater Threat to Your Business
Security and
Cyber-Risk Threats
Digitally Driven
Competition From
Traditional Industry
Competitors
New Competitive and
Commercial Threats
Digital-Enabled
Companies Entering Your
Industry From Other
Industries
41%
53% 47%
n = 961
n = 928
59%

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+3.5%
Latin
America
+1.5%
EMEA
+4.1%
APAC
+2.3%
North
America
Global Weighted Average: 2.2%
The Purse Strings Are Loosening, but Only a Little
Represents growth in spending inside IT organization, in nominal terms

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The World Is Moving Toward Platforms
Business as a Platform
Moments
Products
Services
Markets
Business as a System
Products &
Services

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Digital Visionaries Are Building Platforms Throughout
Their Businesses
#GartnerSYM
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Ecosystem
Enterprise
IT

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Create a Bimodal Delivery Platform
Exploit
and
Explore

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Build the Dual Capability to Exploit and Explore
Refactor to
Industrialize
Unlock for
Innovation

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Bimodal Is Becoming Increasingly Real
Of those who have
Bimodal IT, the
average proportion
of investments in
Mode 2 is 25%
Adoption of Bimodal Tools by Those On The Journey (n = 360)
38%
of CIOs are on
the Bimodal IT
journey
76%
72%
53%
36%
28%
27%
25%
25%
23%
8%
Agile methodologies
Multidisciplinary
teams
Adaptive sourcing
Different funding
Mode 2 outside IT
Different metrics
Work with
startups/SMBs
Bimodal subcultures
Formal innovation
management
Crowdsourcing

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The Most Impactful Bimodal Tactics Are Not the Most Used
Average
Digital
Performance
5.00
4.75
4.50
4.25
0% 10% 20% 30% 40% 50% 60% 70% 80%
Crowdsourcing
Different Metrics
Work With
Startups/SMBs
Formal Innovation Mgmt.
Bimodal Subcultures
Mode 2 Outside IT
Different Funding
Adaptive Sourcing
Agile Methodologies
Multidisciplinary
Teams
% of CIOs Using
7.00
n = 360

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Examples of actions CIOs need to take when creating their
Delivery Platform Action Plan
HOW CAN
YOU HELP
THEM?
ASAP
Build a bimodal business and IT structure
Adopt adaptive sourcing strategies
Experiment with crowdsourcing in Mode 2
Try working with startups/smaller partners

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Evolve the Talent Platform
Ignite
Talent
from Inside
and Out

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Talent Issues Are the Biggest Barrier to CIO Success
What is your biggest barrier to achieving your objectives as a CIO?
n = 555
22%
15%
12%
11%
9%
8%
Skills Money Culture Alignment Technology Change Relationships
8%

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O
1. Information/Analytics 40%
2. Business Knowledge/Acumen 18%
3. Security & Risk 17%
4. Digital 15%
5. Project Management 13%
6. Software Development 13%
7. Architecture 12%
8. Leadership 9%
9. Attract/Retain 8%
10.Technical Skills 8%
The Biggest Talent Gaps Are Information and Business Knowledge
2016 CIO Survey n = 937

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Examples of actions CIOs need to take when creating their
Talent Platform Action Plan
HOW CAN
YOU HELP
THEM?
ASAP
Make more hires from the rest of the business and
developmental rotations
Build closer relationships with universities
(internships, developing existing talent)
Consider "Techquisitions" to capture talent
Assess current and potential partners as digital
inhibitors versus accelerators

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Build Your Leadership Platform
Digital
Leadership
as a Team
Sport

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19%
45%
33%
3%
24%
51%
24%
1%
Trusted Ally Partnering Transactional At-Risk
2014 2016
CIO Power and Influence Up from 2014, And Increasing
n=1356 n=482
Nature of current
CIO-CEO Relationship
Expected changes in CIO power
and influence in next year
2014 2016
Decreasing significantly 0% 0%
Decreasing somewhat 1% 0%
Decreasing slightly 3% 2%
Remain about the same 20% 16%
Increasing slightly 31% 29%
Increasing somewhat 31% 34%
Increasing significantly 14% 18%

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Many CIOs Are Leading Digital Transformation
and Innovation
30%
2%
2%
7%
9%
13%
18%
19%
22%
34%
39%
None
CFO
HR
COO
Risk (CRO)
Business Strategy
E-Commerce
Shared Services
Enterprise Change
Innovation
Digital Transformation (CDO)
CIO Leadership Roles
2016, n = 952

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Examples of actions CIOs need to take when creating their
Talent Platform Action Plan
HOW CAN
YOU HELP
THEM?
ASAP
Extend your leadership focus beyond the
boundaries of the business to the ecosystem
Build a plan to develop the digital savvy of the
business leadership and IT teams
Consider getting mentoring from a digital-
centric company and/or reverse mentoring
Find a way to make time and space to actualize
the plan and play a digital leadership role

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