We asked CIOs to rate the factors affecting the success
of IT within their organisation, and found that many still feel
their firms lack the processes, understanding, training and
business-wide support to maximise the value of IT
investment
Thirty per cent of UK IT directors feel they are struggling to
demonstrate the business value of IT in their organisations. They
feel that their boards do not understand the importance of IT to
the business, end-users are insufficiently trained, and integration
of business processes with IT is inadequate, according to Computer
Weekly’s inaugural CIO Index.
With responses from more than 100 of the UK’s most senior IT
management, the research demonstrates the mood at the top of IT
departments in UK businesses.
Nearly all IT directors report that IT is providing more
business value this year than last year, and they expect the trend
to continue. However, 30% of IT directors feel it is hard to
demonstrate that value to their colleagues in other business
departments.
Furthermore, many CIOs feel their organisation lacks the
processes, understanding, training and business-wide support to
maximise the value of IT investment.
Buy-in from the board is one key precondition for IT project and
programme success, but 24% of IT directors surveyed consider that
their board does not understand the value of IT to the business,
and 29% do not feel sufficiently empowered by their board.
More positively, 35% of IT heads agree strongly that their board
understands the importance of IT, and 33% agree strongly that they
feel sufficiently empowered.
To achieve full value from IT, an organisation’s IT systems need
to align and integrate with its business processes. But 29% of CIOs
said that their IT systems still do not integrate well with
business processes. Only 19% of respondents were fully confident
that they had IT and business integration right.
Communication with the business is a major management challenge
for most IT directors, and the good news is that 90% said overall
communications between IT and the business were improving.
But close contact at all levels between IT staff and their
business counterparts is essential to unlocking business value, and
this is still not happening in many cases. In 35% of organisations,
IT directors feel end-users do not regularly advise the IT staff of
developing requirements. Also troubling is that just 12% of CIOs
agree strongly that end-users are sufficiently trained to use the
systems effectively.
Despite the continued trend to outsource IT, particularly
offshore, there is strong evidence that IT directors remain
uncertain about the value of this strategy. Of those surveyed, 75%
say that outsourcing has not provided the expected benefits.
And the prevailing mood at the top of IT departments suggests
suppliers could provide better value. Although 90% agree that their
relationship with IT suppliers is broadly satisfactory, 47% of IT
directors see no movement on better product interoperability, and
67% do not see IT suppliers becoming any more accommodating on
software licences.
However, the survey also reveals that 72% of IT directors
believe that third-party software has improved over a three-year
period.
Security and business continuity are a major concern for IT
directors, particularly in the supply chain, and 66% of IT
directors feel that security is not adequately funded.
Regarding business continuity, 36% of CIOs said that their
business continuity plans were not robust, and 46% do not think
that their supply chain’s business continuity plans are robust.
Despite the limitations and the challenges to be overcome, IT
directors still overwhelmingly (97%) believe that they deliver a
reliable service overall, although 38% have some reservations.
Some 91% believe that their own systems are robust and scalable,
and 89% foresee IT management getting onto a more professional
footing. This shows that the current IT professionalism initiatives
spearheaded by the BCS, the National Computing Centre and suppliers
group Intellect, are in tune with the mood of many IT
directors.
Overall – and despite many feeling they struggle to demonstrate
the value of their work to the business at large – senior IT
professionals continue to be optimistic that they are improving the
projects and services IT departments offer.
Click here for survey
figures
Methodology
In April, Computer Weekly initiated a confidential online survey
of IT directors in the Computer Weekly 500 Club. The research was
conducted by our parent company Reed Business Information’s market
research department, strictly adhering to the Market Research
Society’s code of conduct.
Respondents graded their replies to a statement according to
four categories: agree strongly, agree slightly, disagree slightly
and disagree strongly.
The survey resulted in 127 completed questionnaires, and an
additional 13 partially completed.
Computer Weekly’s CIO Index will be carried out quarterly and
will provide analysis of key metrics for IT expenditure, technology
adoption and business readiness.
Improving alignment of technology and business
strategy
Influencing and managing IT and business alignment is one of the
major management challenges for IT directors. Computer Weekly
research identified the following best practice.
Improve communications Communication is a
two-way process. Put a structure in place for effective
communication between IT and the business at all levels. Make sure
end-users advise IT of developing requirements and establish a
process for regular contact with end-users, rather than only
talking to them when there is a problem.
Get board-level understanding Communicate the
business value that you have identified using the language of your
business, and network closely with your business colleagues to
understand their agenda and priorities.
Business continuity plans Be bold in ensuring
that the business is aware of its responsibility to set the
priority levels for continuity plans, but at the same time work
closely with the business to ensure there is understanding and
agreement about the scale and nature of risks.
End-user training Build in end-user training
from the start of projects and keep that as an agenda item in all
project meetings with the business. However good the system, an IT
implementation will fail if the end-users are unable to use systems
properly.
Demonstrate business value from IT Make sure
that you communicate the business value of systems widely
throughout the organisation – for example, through internal
newsletters or an intranet – and on terms that the business
understands. Enter successful projects for awards to get your
success formally acknowledged outside your organisation. Work with
the public relations department on this.
Data quality Query all data and do not accept
poor quality data in your systems.
Software licences Work through user groups to
ensure a fair deal on licensing, as well as other issues such as
product interoperability or third-party software quality.