Survey Explores Global Differences in how CIOs Approach and Employ ITIL

Management (ITSM) best practice frameworks to improve their ITefforts, says a recent study commissioned by Dimension Data, a $3.8 billion leading IT solutions and services provider. The study targeted more than 370 CIOs from 14 countries across five continents. The results reflect the differences by region among CIOs who are still dealing with how to adequately capitalize on ITIL best practices.

In the U.S., 40% of CIOs from 100 enterprises overwhelmingly cited grass roots initiatives as the primary driver in their decision to evaluate and adopt an ITIL framework. The study showed that U.S. CIOs report business department initiatives as a secondary driver (20%) and regulatory compliance requirements as a third key driver (16%). In addition, U.S. CIOs were twice as likely as their EMEA counterparts to cite compliance as a strong motivator to evaluate and adopt IT Service Management, while only 5% of their APAC counterparts cited compliance as a motivator.

The survey shows increasing recognition for ITSM’s potential to align IT more tightly with the business’ strategic objectives, provide additional resources for innovation through more efficient dealing with routine tasks and facilitate communication by providing a common language.

When asked what the primary inhibitors are to the adoption of ITIL/ITSM best practices, U.S. CIOs overwhelmingly said that the costs associated with implementation – as well as the lack of resources to assess implementation readiness, training costs and certification – were principal obstacles. Based on worldwide responses, these restrictions were most keenly felt by U.S. CIOs compared to their EMEA and APAC counterparts.

Other statistics from the report showcase the differences and similarities of CIOs across the globe:

-- 30% of U.S. and APAC CIOs report a close link between innovation and IT efficiencies, while less than 20% of CIOs in EMEA believed that to be true. More than 20% of EMEA CIOs cited innovation as the best way to facilitate the alignment between IT and business departments.

-- In the U.S. and APAC, 30% of CIOs believe real business value is derived from ITIL when an organization develops an actionable roadmap for continuous process improvement based on ITIL best practices. In EMEA, 30% of CIOs queried are satisfied with the framework but need more explicit indicators or successes.

-- More than 50% of U.S. and EMEA-based CIOs believe that in order to retain strategic ownership and focus, IT must align to business and focus on key strategic needs of the organization.

Regional variations aside, the Dimension Data study confirms that CIOs around the globe demonstrate a growing recognition of the potential ITSM best practices (particularly ITIL) have to get IT functioning like a well-oiled machine and deliver real business benefits. However, some CIOs cite challenges with implementing ITIL due to the fact that much is open to interpretation, and often first-time ITIL implementations fall short. ITIL describes what best practices are, but doesn’t describe how to implement processes. CIOs in the U.S. are most comfortable undertaking ITIL initiatives when the result is an actionable roadmap based on ITIL suggestions.

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PC Market Is Expected To Continue Double-Digit Growth Despite Increasing Economic Concerns

Worldwide PC shipments are projected to grow by 12.8% in 2008 to reach 302 million units, according to IDC's Worldwide Quarterly PC Tracker. Growth will continue at above 11% in 2009 followed by high single-digit growth through 2012, boosting annual shipments to over 426 million in 2012. Overall volume growth, combined with a steady transition to Portable PCs, which generally cost more than Desktops, will help offset falling average prices. The total value of PC shipments is projected to grow by 7.4% in 2008 to nearly $280 billion. Shipment value will continue to grow by roughly 4% annually from 2009 through 2012, reaching nearly $330 billion by 2012.

Portable adoption remains the primary driver in all regions, nearly matching record quarterly growth in Q3 2007, and record annual growth in 2005. Increases of more than 50% in Asia/Pacific (excluding Japan) and Rest of World helped boost these regions to more than 36% of Portable volume, while the United States and Western Europe saw growth above 20% and continue to account for more than 50% of Portable volume.

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IDC's SMB Survey Reveals Unique Behaviors Driving Software Investment Decisions in Asia/Pacific Excluding Japan

IDC's “SMB IT Investment Trends Survey 2008 – Software and Services” revealed that a high level of expertise or support needed from the vendor is the most important factor affecting software investment decisions of mid-market companies, defined as companies with 500 to 999 employees, in the Asia/Pacific excluding Japan (APEJ) region. Relatively smaller companies, defined as companies with 100 to 499 employees, also viewed this as an important factor, but they were more concerned about Security. Small companies, defined as those with less than 100 employees, were even more concerned about the price (32% regarded it as the top factor).

Some other highlights of the study are as follows:

--The main compelling factor for the SMBs surveyed to move ahead with “software on demand” solutions was the lower cost to implement and maintain. The second most important factor mentioned was that it could ease IT staff workload. When asked why they would not use software on demand, the major factor mentioned was the concern about data security, hence their preference to have software and data on-site.

--More than half of the SMBs surveyed had full-time IT dedicated staff and viewed IT as strategic to their businesses. But still, more than 40% of the SMBs surveyed had their IT staff also handling non IT-duties.

--When buying IT Services, more than 64% of the SMBs surveyed preferred to deal with a local system integrator or service partner. Such a preference was even more important for small companies. Mid-market companies, on the other hand, preferred to deal more with the technology owners, and were more likely to use a multinational or global service provider.

--When deciding on an IT Services provider, small and medium businesses in general ranked price, local knowledge and local market experience as top priorities, while mid-market businesses viewed personal attention and the turnaround time a partner can offer them, as important decision factors.

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Green Is The New Gold, According to Aberdeen Group

Aberdeen, a Harte-Hanks Company, announced upcoming findings from "The 2008 Aberdeen Report: State of the Market." Over 4500 survey participants identified how their organizations are seeing the emergence of "Green" initiatives like never before fueled by social, ecological and economic implications. The increasing complexity of the global business environment, rising energy and transport costs, and mounting compliance challenges are driving a major focus on sustainability and green initiatives.

Forty-seven percent of the respondents in the 2008 Aberdeen Report revealed that they already have green initiatives in place. Of these firms, 74 percent cite Corporate Social Responsibility (CSR) as the main driver for their green initiative and 52 percent of the surveyed audience identified competitive advantage as the second top pressure for having a green initiative (see chart). Overall, green initiatives ranked in the top eight corporate strategic goals for organizations in 2008.

In 2008 "Green" is more than just politically correct; it is a path to sustainability and to a more competitive position in the global market. Companies have also found innovative ways in which to successfully implement Green initiatives into their organizations such as green product development, green technology infrastructure, and green server architecture, to name a few. Green Marketing is also an emerging notion as companies seek targeted, lower volume direct mail solicitations stemming from environmental awareness. Green Supply Chains are also cropping up in companies with global operating requirements, increasing environmental challenges, and supply chain cost pressures which are rapidly driving the need for improved sustainability and social responsibility programs and solutions.

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Tech and Telecom Companies Continue to Rely on Traditional Recruitment Methods Despite Talent Shortage

With technology and telecommunications companies still looking to lure talent using traditional compensation-based approaches, there is a disconnect between HR practices and candidates’ priorities, according to a new Deloitte survey.

The study, “Competing For Talent,” found that the vast majority of companies in these sectors are relying on financial incentives to attract and retain employees. In contrast, the study found that today’s workforce values greater freedom in schedules and control of where and how they work over financial compensation.

The survey also found that creative and other critical talent that generates greater-than-average value for customers and shareholders is most difficult to attract, and the problem is expected to increase over the next three to five years.

Deloitte surveyed more than 150 technology and telecommunications companies in North America to understand their most significant talent issues and what they are doing to address them.

Key findings of the survey include:

--Two-thirds of respondents expect their workforce to grow by at least 6 percent over the next 12 months, and only 6 percent expect their workforce to shrink.

--Technology and telecommunications companies surveyed are generally less worried than companies in other industries about a prolonged global labor crisis. This may be due to the fact that technology and telecommunications companies are considered “sexy” and, therefore, have an easier time attracting talent. It may also be attributable to their younger workforces, which are less affected by Baby Boomer retirements.

--Respondents that fail to address their talent management challenges over the next three years will feel the pain where it really hurts: in limited growth, increased time to market, reduced innovation, damage to customer relationships, and more.

--Forty-four percent of respondents have either not defined a list of critical skills for future growth or are in need of updating their list to meet current needs.

--Roughly a third of respondents regularly discuss the talent shortage at board meetings, while another third discuss it once or twice a year. Moreover, nearly half of the surveyed companies have started to conduct workforce planning to identify critical skills and talent gaps.

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Improving Web-Based Support is Crucial to Good Customer Service

InQuira, Inc., a provider of integrated software applications for intelligent search, knowledge management, analytics and user experience, announced the publication of a study it sponsored from independent research firm ServiceXRG that examines the current state of online shopping and customer service. The study, entitled "Influencing the Online Experience," reveals that in order to maintain customer mindshare and loyalty, companies must improve available content and provide a superior web-based service experience.

ServiceXRG surveyed nearly 1,000 companies and online shoppers to gain insights from both the consumption and supply sides of the online experience to learn how the web is changing the way businesses engage with customers, and in turn how it impacts consumer perceptions of companies. Specifically, ServiceXRG examined how consumers use search for online support, conduct product research and engage in shopping activities; and then explored the investments, tools and resources the "supply side" provides to encourage Web use, drive successful online transaction and deliver a positive customer experience.

Key findings from the study include:

--Content quality and the ability to find information remains a top concern for consumers: 74.5% indicate that they use a company's web site to get information about a product or service, but only 44% of consumers surveyed felt that the information met their needs;

--Only 38.9% of the surveyed companies say they're currently able to provide a powerful advanced search function to their site visitors. In addition, 31.2% say they specifically plan to implement enhanced search in the future;

--97% of companies surveyed plan to make future investments to enhance customer's ability to find the service information they need, with content enhancements topping the list; and

--Less than 20% of companies provide a form of escalation through live chat to help customers during their shopping experience.

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IT Leaders Must Place IT Modernization at the Core of Their 2008 Objectives

IT management teams must place modernizing strategic planning at the core of their 2008 objectives and immediately apply this capability to IT modernization efforts, according to Gartner, Inc. By year-end 2010, more than one-third of all application projects will be driven by the need to deal with technology or skills obsolescence.

Gartner defines IT modernization as a movement that includes market forces, strategies and approaches to manage the ongoing, coordinated evolution of the business process, application and supporting technology portfolios to achieve an optimized value, cost and risk objective.

There are three major contributing factors to why IT modernization is needed now:

Lack of agility of IT systems and services in responding to business requests for change. As the IT environment becomes more crowded and more complex, it simultaneously becomes less able to respond in a timely manner to business demand for change. Every CIO struggles with this backlog of demand, which cannot be addressed simply by working harder with the artifacts that constitute the IT environment. The IT architecture was not designed or built for agility, so working harder is not going to close the agility gap.

Increasing integration among portfolios. Integration is capable of delivering real value to the business, reducing latency and increasing the throughput capacity of the organization. However, there is increased complexity in managing service delivery and maintaining the portfolios of assets needed to support the integrated organization. These benefits come at a price with increased complexity in managing service delivery and maintaining the portfolios of assets needed to support the integrated organization.

Increased obsolescence of deployed assets. The recession in 2000 and 2001 caused many enterprises to take a hiatus for a year or two from investing in IT. IT teams learned the disciplines of placing systems on life support, squeezing the last possible value from sunk costs. Although IT management teams may well be able to keep systems on life support for some time, there is a finite limit to the willingness of business users to keep on using solutions that fail to deliver modern standards of functionality and agility.

Skills crisis. Enterprises worldwide are operating under circumstances in which a significant portion of the people who understand their mission-critical systems are eligible to retire during the next five years. Organizations should not be surprised to find that 25 percent to 30 percent of their employees with legacy skills will be eligible to retire in the next three years.

Gartner recommends that CIOs identify the key asset portfolios across the IT domain, and assign management responsibility across the IT management team for each asset portfolio. The staff should be certain that the CIO will hold them individually responsible for participation in the activity. CIOs must also identify the best individual available to take responsibility for comprehensive IT planning across all portfolios, and make this individual a direct report.

CIOs should also organize a planning session where all the asset owners can explain the maturity and modernization issues inside their own portfolios to all the other asset owners. This will expose opportunities for synergy in all the interactions between each of the portfolio strategies.

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