Three Key Takeaways from the 2016 State of IT Report

As 2015 winds down, IT leaders and their teams are looking at internal needs and external conditions in formulating plans and setting budget priorities for the coming year.

The recently released 2016 State of IT Report from Spiceworks provides a wealth of information about how IT teams are formulating plans for the year ahead.

The report covers IT budgets, spending and staffing plans; the trends and concerns keeping IT pros up at night; and a look forward at technology adoption trends.

Among the abundance of facts and stats presented, here are three noteworthy findings, along with additional observations.

IT pros will “need to keep doing more… with less.” (Here’s one strategy to help.)

One of the key top-level conclusions reported by Spiceworks is: “IT pros don’t expect their IT staff to increase in 2016, which means they’ll need to keep doing more… with less.”

How IT can do more with less

At the same time, more than half of IT organizations say “end-user need” is a key purchase driver.

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Higher Ed Service Catalogs: Six Top Questions Answered

While CIOs across industries are grappling with new threats and opportunities presented by revolutionary technological change, those who work in college and university settings face unique challenges.

Top questions about higher ed service catalogsWriting on LinkedIn Pulse, Tracie Bryant notes than in addition to common CIO challenges like budgeting, strategy, and training, higher ed CIOs must also address issues like scaling up bandwidth to handle “the booming popularity of online classes,” and implementing an advanced technology infrastructure to attract the best and brightest students and faculty (as well as donations).

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How Service Catalogs Help Enterprise IT Innovation

Over the past few decades, organizations have applied technology primarily to reduce costs. Faster computers, instantaneous global communications, and specialized software for every business function have dramatically improved productivity and driven costs out of the value chain.

But the days of cost reduction as the primary focus of IT may have ended. As noted here a year ago, “improving the effectiveness of business processes” has replaced reducing costs as the top concern of IT leaders.

BPI IT innovation report - accelerating business transformationNow, fresh research from the Business Performance Innovation (BPI) Network reinforces and builds on this trend. Across enterprises, business leaders are looking to IT and new technologies to help “increase agility, improve customer experience, and make their companies more competitive.”

As the mission of IT is transformed from driving out costs to driving business model innovation, IT’s profile is raised as well. Per the BPI research, almost two-thirds (65%) of enterprises “say technology has become ‘far more important’ to their organizations in the past five years. Another 28% see it as ‘somewhat’ more important.”
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The CIO’s Role in Stellar Customer Experience – Hunter Muller

The role of the CIO has shifted dramatically in the past few years, from the traditional focus on “keeping the lights on” to playing a more strategic part in aligning IT with the business, as well as embracing trends like the consumerization of IT.

Yet in his new book The Big Shift in IT Leadership, author Hunter Muller “contends that many CIOs remain focused inward, only concerned with technology,” according to Anita Bruzzese on The Fast Track blog.

The Big Shift in IT Leadership: How Great CIOs Leverage the Power of Technology for Strategic Business Growth in the Customer-Centric EconomyAs Bruzzese writes, “The best CIOs, (Muller) says, know that results beat out technology. Having great technology doesn’t mean much if customers aren’t having a good user experience.”

Muller believes CIOs should not only contribute their expertise to efforts aimed at providing a great customer experience (for both internal and external “customers”), but to take a leadership role in this area.

He views IT leaders as uniquely positioned for this task, because CIOs “have total visibility across the organization,” and with that access, “have a golden opportunity to help develop innovative strategies and spur collaborations that will have a big impact on the organization’s overall success.”

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Three More Key Findings About the Future of IT Service Management from EMA Research

The consumerization of IT, digital business model disruption, and the need for greater speed in technology development are combining to dramatically change the role of IT service management. According to Dennis Drogseth of Enterprise Management Associates (EMA), “Both the ‘rules’ and the ‘roles’ governing IT Service Management (ITSM) are evolving” as the relationship changes “between IT and its service consumers.”

Cloud computing, mobile, and the future of ITSMIn The Future of ITSM: How Are Roles (and Rules) Changing? Part 2, Drogseth details several conclusions from the organization’s research, expanding on previously reported findings. Here are three observations that stand out, with additional commentary.

Service management isn’t just for IT anymore.

Among EMA’s findings, “89% of respondents had plans to consolidate IT and non-IT customer service.”

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Agile, DevOps Feed the Need for (Business) Speed

Remember the story of the tortoise and the hare? “Slow and steady wins the race”? Econ 101 lectures about economies of scale? Business truisms like “Nobody ever got fired for buying…” (insert any large, established vendor name here)?

Such nuggets of business wisdom seem to no longer apply. Today, in the words of author Jason Jennings, “It’s not the big that eat the small, it’s the fast that eat the slow.” Competitive advantage comes from reworking business processes and service delivery models to improve speed not by 10% or even 100%, but by multiples. Consider:

  • How Agile, Scrum and DevOps meet need for business speedAccording to a recent Financial Times story by Lisa Pollack, “A Berlin company, founded in 2013, built an online service that allows new customers to open a bank account in under eight minutes…The company, Number26, has signed up more than 30,000 customers after launching what it deems ‘Europe’s most modern bank account’ in January.”

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New CIO Role: Eight Ways to be a Chief Integration Officer

The confluence of disruptive business models, emerging technologies (cloud computing, IoT, wearables) and the consumerization of IT has dramatically redefined the role of the CIO. While there’s no question the CIO’s job description is evolving (a Google search for “changing role of the CIO”–in quotes–yields more than 30,000 results), there’s no clear consensus on exactly what that means.

The CIO as Chief Integration OfficerBut a recent research report from Deloitte and accompanying summary suggest a new twist on the title: the CIO as “chief integration officer.” In this role, the CIO “integrates” technology, ideas, and processes across business functions to drive innovation and improve business performance.

The full report is well worth investigating, though it runs to 150 pages; the summary is an informative, quicker read. Continue reading “New CIO Role: Eight Ways to be a Chief Integration Officer”

Happy Employees, Happy Customers, Higher Profit: How to Get It All With Proactive IT

The link between employee happiness and business results is clear, according to recent research from the Russell Investment Group, Deloitte and others. Happy employees make for happy customers, leading to higher profitability and stock price.

Summarizing the studies in Forbes, Blake Morgan affirms that happy workers mean higher profits, noting “publicly traded companies in the Fortune ‘100 Best Companies to Work For’ list have gained an average 10.8% a year since 1998” (versus 6.5% for the DJIA and 5.3% for the S&P 500 over the same period).

How happly employees mean higher profitsShe further observes that “The same companies invest in employee happiness year after year. The rest continue to not invest. There’s a clear line between companies that get it and companies that don’t.”

While numerous factors impact employee happiness, a proactive IT support strategy can play a key role. Continue reading “Happy Employees, Happy Customers, Higher Profit: How to Get It All With Proactive IT”