THE C-SUITE TECHNOLOGY AGENDA
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1 THE C-SUITE TECHNOLOGY AGENDA WSJ. INSIGHTS THE TECHNOLOGY THOUGHT LEADERSHIP SERIES JUNE 2016
2 STUDY OBJECTIVES Understand companies transformation initiatives and technology priorities as well as perceptions of tech companies An online survey was fielded among The Wall Street Journal Readers using the WSJ Opinion Leaders, an insights research panel. Field dates: March 8 May 6, 2016 This research also examined: Types of business transformations taken and reasons driving them Technology priorities and budget for 2016 Companies level of preparedness for the digital economy; perceived challenges Importance of factors when selecting a new vendor and companies decision-making journey Evaluation of tech companies on key metrics: familiarity & innovation 2
3 RESPONDENT PROFILE Total of 1,669 Business Executives Across U.S., Europe and Asia PRIMARY OFFICE CEO/ CORPORATE STRATEGY CIO/CTO/CISO TECHNOLOGY CMO/DATA ANALYTICS MARKETING CFO/AUDIT FINANCE 36% 22% 17% 15% ALL HAVE DECISION-MAKING POWER SPECIFICALLY WITH TECHNOLOGY Source: WSJ. Insights: The C-suite Technology Agenda Base: Remaining 10% of respondents report to other offices (e.g., Chief Talent, Chief Scientist); data not shown. 3
4 MAIN FINDINGS 4
5 CHANGE IS THE NEW NORM CONFLUENCE OF FACTORS DRIVING CHANGE 91% OF GLOBAL BUSINESSES ARE IN SOME PHASE OF CHANGING THEIR BUSINESS MODELS MARKET SHIFTS/ COMPETITIVE PRESSURES LEGACY SYSTEMS CUSTOMER DEMANDS Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669. Q5. Please select one statement from the list below to best describe your organization s perspective on business transformation. Q7. And, what are the main triggers driving these transformation(s) in your organization? 5
6 WHAT S ON THEIR CORPORATE AGENDA? Every business across all industries is focused on technology adoption ahead of financial growth & security MAJOR TRANSFORMATION INITIATIVES FOR YEAR AHEAD 50% NEW TECHNOLOGY ADOPTION 38% 40% FINANCIAL GROWTH 38% CUSTOMER EXPERIENCE 34% SECURITY Source: WSJ. Insights: The C-suite Technology Agenda Base: Among those who are planning or have started a transformation initiative, n=1,519. Q6. What are your organization s top five transformation initiatives for the year(s) ahead? Please select up to five (5) responses. 6
7 TECH PRIORITIES FOR 2016 Consensus across executives; however for CMOs, main focus is CRM (ranks #1 at 55%) TECHNOLOGY PRIORITIES FOR THE YEAR AHEAD IT Infrastructure/Legacy Modernization 51%* Mobile/App Economy 49% Cybersecurity 38% Customer Relationship Management 38% Big Data, Machine Learning & Predictive Analytics 31% E-commerce, m-commerce 29% Internet Of Things/Wireless-based Products 24% Collaboration/Virtualization Platforms 21% Automation/Robotics 17% Artificial Intelligence 16% *#1 Among Manufacturing, Financial Services & Healthcare Source: WSJ. Insights: The C-suite Technology Agenda Base: Total, n=1,669. Q9. Thinking specifically about technology, which of the following best describes your organization s technology priorities for 2016? 7
8 PREPAREDNESS FOR THE DIGITAL ECONOMY IS MODEST CEOs are less likely to believe their organization is well-prepared for the digital economy PREPAREDNESS FOR DIGITAL ECONOMY ALL RESPONDENTS CEOs CIOs/CTOs/TECHNOLOGY 41% 63% 37% 53% 8-10 on 10 point scale 1=Not at all prepared, 10=Completely prepared Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669 Q8. Based on what you know or believe about the digital economy, how would you rate your organization s preparedness for the digital economy on a scale of 1-10? 8
9 GLOBALLY, TECH AND MANUFACTURING AHEAD OF OTHER INDUSTRIES; MEDIA AND HEALTHCARE LEAST PREPARED PREPAREDNESS FOR DIGITAL ECONOMY % VERY PREPARED (rated 8-10 on a 10-pt scale) 52% 43% 39% 38% 36% 29% TECHNOLOGY MANUFACTURING RETAIL FINANCIAL SERVICES MEDIA & PUBLISHING HEALTHCARE Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669 Q8. Based on what you know or believe about the digital economy, how would you rate your organization s preparedness for the digital economy on a scale of 1-10? 9
10 CHALLENGES VOICED BY C-SUITE EXECUTIVES 10
11 THIS BRAVE NEW WORLD ALSO BRINGS SEVERAL CONCERNS 1 OUR ORGANIZATION FINDS IT CHALLENGING TO KEEP UP WITH ALL THE NEW TECHNOLOGIES 72% AGREE (STRONGLY/SOMEWHAT) Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669 Q11. We d like to better understand how technology is impacting your organization. Looking at the statements below, how much do you agree or disagree with the following? 11
12 VOLUME AND VELOCITY OF BIG DATA IS HUGE CHALLENGE Media (65%) and manufacturing (63%) more likely to struggle with big data than others 2 OUR ORGANIZATION STRUGGLES TO MAKE SENSE OF BIG DATA 60% AGREE (STRONGLY/SOMEWHAT) Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669 Q11. We d like to better understand how technology is impacting your organization. Looking at the statements below, how much do you agree or disagree with the following? 12
13 WHILE BENEFITS OF CLOUD ARE IMMENSE, CONCERNS ARE TREMENDOUS Security concerns especially high among CFOs jumps to 74% 3 RELYING MORE ON ENTERPRISE CLOUD SERVICES 65% AGREE (STRONGLY/SOMEWHAT) HESITATE PUTTING KEY DATA IN THE CLOUD BECAUSE OF SECURITY RISKS 65% AGREE (STRONGLY/SOMEWHAT) Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669 Q11. We d like to better understand how technology is impacting your organization. Looking at the statements below, how much do you agree or disagree with the following? 13
14 TECH BUDGETS AND FOCUS ON TECH VENDORS
15 TECH BUDGET POISED FOR GROWTH IN % average growth estimated; 95% estimate the same or bigger IT budgets in 2016 TECH BUDGET IN 2016: CHANGE FROM PREVIOUS YEAR INCREASE MORE THAN 10% Disconnect between CEOs and CTOs: 39% vs. 50% Manufacturing, retail and media all cite an increase of more than 10% INCREASE BY MORE THAN 10% INCREASE BY 1-10% REMAIN SAME DECREASE BY 1-10% DECREASE MORE THAN 10% Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669 Q10. How do you expect your overall technology budget in 2016 will differ from your technology budget in 2015? 15
16 WHO S INVOLVED IN TECH DECISION MAKING? CEOs and CTOs are most involved in the purchase decision process with the CEOs having final say PURCHASE DECISION JOURNEY Identify Need For New IT Initiative Select Criteria(s) Recommend IT Vendors Evaluate IT Vendors Build Financial Justification Final Purchase Authorization % CEOs 51% CTOs/CIOs 49% CFOs 37% CMOs 49% CTOs/CIOs 46% CEOs 40% CFOs 29% CMOs 49% CTOs/CIOs 45% CEOs 33% CFOs/CMOs 49% CEOs 47% CTOs/CIOs 35% CMOs 34% CFOs 45% CTOs/CIOs 42% CEOs 41% CFOs 27% CMOs 41% CEOs 25% CTOs/CIOs 18% CFOs Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669 Q17. Now, we d like to better understand your level of involvement in deciding which technologies to implement within your organization. Looking at the list below, which of these processes are you personally involved with? 16
17 TRUST IS COST OF ENTRY Cited by 70% of CEOs 13% pt. difference IMPORTANCE OF ATTRIBUTES WHEN SELECTING A TECH VENDOR % VERY TRUST SUPERIOR CUSTOMER SERVICE REPUTATION TEAM KNOWLEDGE/EXPERTISE 57% 52% 51% 50% PRIMARY ATTRIBUTES CUSTOMIZED SOLUTIONS FEES 41% 44% RANGE OF TECH PRODUCTS/SERVICES 36% SECONDARY ATTRIBUTES PRIOR EXPERIENCE W/ VENDOR OPERATES GLOBALLY 29% 28% Source: WSJ. Insights: The C-suite Technology Agenda Base: 1,669 Q19. How important are the following attributes to you/your company when evaluating a technology vendor to partner with? 17
18 BESPOKE OFFERINGS MOST VALUED AND WILLING TO PAY For CEOs, customized service is paramount so much so they re willing to consider paying for it; reputation less important MOST VALUED ATTRIBUTES WHEN SELECTING A TECH VENDOR BY EXECUTIVES CUSTOMIZED SOLUTIONS TRUST 16% 21% 25% among CEOs and 18% CIOs/CTOs REPUTATION RANGE OF TECH PRODUCTS/SERVICES 14% 13% 22% among CFOs vs. 9% of CEOs FEES SUPERIOR CUSTOMER SERVICE OPERATES GLOBALLY 10% 9% 9% TEAM KNOWLEDGE/EXPERTISE 6% PRIOR EXPERIENCE W/ VENDOR 2% Source: WSJ. Insights: The C-suite Technology Agenda Base: n=1669. Q20. And, which one attribute do you value the most such that you may consider paying more for it? 18
19 WSJ REACHES TECH INFLUENCERS Across all platforms, WSJ reaches more than 1 in 3 decision makers WSJ BRAND REACH OF KEY PROFESSIONALS 35% C-suite/ Top Managers 34% B2B Tech/ Telecom PDMs 38% CIOs/ CTOs 65 % 7.2 MILLION 6.0 MILLION 1.7 MILLION Source: 2016 Spring Ipsos Affluent Study; brand reach reflects past 30 day use across all measured print and digital platforms. 19
20 APPENDIX
21 RESPONDENT PROFILE Across a range of company sizes and industry sectors REGION U.S. 29% Europe 34% Asia 37% TOP INDUSTRIES Manufacturing 21% Technology/Computers/Software 18% NUMBER OF EMPLOYEES 24% 36% 39% COMPANY REVENUE UNDER Banking/Finance/Insurance 13% Retail 11% Healthcare/Pharmaceuticals 6% Marketing/Media 5% 14% 22% 29% UNDER $10MM $ MM $ MM 36% $1B OR MORE 21
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