Corporate CIOs in emerging markets an evolving role

Corporate CIOs in emerging markets An evolving role A report from the Economist Intelligence Unit Sponsored by Corporate CIOs in emerging markets An evolving role Contents  Foreword About this research Executive summary I The broadening remit of the CIO Alkhorayef Group: Speedy repairs in the field 11 Dubai Aluminium: The 24/7 customer portal 11 MOL: Understanding targets 13 Holicon: Introducing the “chief process officer” 14 Drivers of change 14 II The overhang of the past 16 18 Obstacles to change III A regional comparison 19 Conclusion 22 Appendix: Survey results 23 © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role Foreword E conomists have long identified information technology (IT) investment as a driver of productivity and operational efficiency, and hence of economic growth This is nowhere more apparent than in emerging markets, where effective use of IT can help to catapult a company from small local player to international competitor As companies in emerging markets sharpen their focus on what IT can contribute to their efficiency, they are giving their chief information officers (CIOs) a broader remit and increased responsibility for ensuring profitability and growth Corporate CIOs in emerging markets is an Economist Intelligence Unit report that examines the expanding role of corporate CIOs in the emerging markets of Central and Eastern Europe, the Middle East and Africa The research was sponsored by Oracle The Economist Intelligence Unit bears sole responsibility for the content of this study; the findings and views not necessarily reflect the views of the sponsor Terry Ernest-Jones was the author, and Aviva Freudmann and Stephanie Studer were the editors October 2011  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role About this research I n August and September 2011, the Economist Intelligence Unit surveyed over 360 senior executives of companies in Central and Eastern Europe (CEE), the Middle East and Africa The sample is split roughly evenly between the three regions, with a slight predominance in CEE Nearly two-thirds are C-level executives and above; the majority are CEOs, CFOs or other non-CIO board members The job functions are mainly general management, strategy development, business development, finance and IT Respondents represent a wide range of industries, with the largest group from financial services, followed by professional services, manufacturing, construction and real estate, and energy and natural resources As regards company size, 43% of the sample has an annual revenue of $100m or less; 18% $100m to $500m; 14% $500m to $1bn; 13% $1bn to $5bn; and the remainder includes corporations with annual revenues of $5bn or more Within each region, the sample is about evenly divided between large companies (defined as having annual revenue above $500m in CEE and the Middle East, and above $100m in Africa) and smaller ones The Economist Intelligence Unit would like to thank all survey respondents, as well as the following executives (chosen for their hands-on experience of the evolving role of CIOs), who participated in our programme of in-depth interviews: l Fahad Al Muttairi, chief information officer, Al Faisaliah Group (Saudi Arabia) l Ahmad Almulla, vice-president IT, Dubai Aluminium (UAE) l Krzysztof Chylinski, chief information officer, Holicon (Poland) l Bryan Cruickshank, global head of IT advisory, KPMG (UK) l Brett Magrath, chief technology officer, Mobile Transactions (Zambia) l Zoltán Attila Tóth, chief information officer, MOL (Hungary) l Yugo Neumorni, IT director, Vimetco Management and president, l Romania CIO Council l Darryl Thwaits, chief information officer, Tiger Brands (South Africa)  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role Executive summary A s emerging-market companies increasingly compete for international market share, they are relying more and more on their information technology (IT) functions for a competitive edge This is elevating chief information officers (CIOs) into leading positions, which in turn is accelerating the introduction of sophisticated IT systems into a broad range of corporate functions This study is based on a survey of 366 senior executives in Central and Eastern Europe (CEE), the Middle East and Africa, as well as eight in-depth interviews with emerging-market CIOs and other experts The research explores the ways in which the CIO’s role is evolving The study looks not only at the rise of CIOs in their respective company hierarchies and their broadening remit—including their efforts to introduce sophisticated IT systems—but also at the factors that inhibit such developments, and at the ways in which the three regions differ from one another in this regard Here are the key findings of the research: l During the past three years, CIOs in emerging markets have raised their profiles and broadened their remits within their companies A majority of emerging-market CIOs are by now members of their companies’ boards and are specifically tasked with helping to formulate and meet strategic objectives l A growing number of CIOs have general management and financial backgrounds in addition to IT and technical skills, and are increasingly called upon to explain the uses of advanced IT to colleagues in other departments l As part of introducing complex IT systems company-wide, many emerging-market CIOs are becoming “chief process officers”—responsible for streamlining business processes, standardising procedures and improving efficiency “The CIO is the single person with a clear picture of all the processes,” says one CIO interviewed for this report l The changing role of CIOs is helping companies to harness IT to broader company goals Three years ago, only 36% of emerging-market executives thought IT was well aligned with their company strategy, compared with 62% today But the added responsibility comes at a price: CIOs tend to find that their day-to-day IT skills decline l These changes have occurred most rapidly among smaller companies (those with an annual global  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role revenue of below $100m), where CIOs can more easily gain a company-wide purview, and in sectors that rely heavily on sophisticated IT, such as telecommunications, banking and other financial services, and professional services, such as outsourced IT and human resources (HR) services l Of the three regions under study, Africa seems the most advanced in terms of expanding the role of the CIO, followed by the Middle East In general, CEE lags behind in terms of modernising internal processes and broadening the remit of the CIO l CIOs in emerging markets often have to wrestle with tougher issues than those faced by counterparts in Western countries They generally have to operate in less stable environments, and experience frustration in having to educate fellow executives on basic IT issues, especially security However, they are less encumbered by legacy systems and tight budget controls l CIOs’ budgetary control over major IT investments typically lags behind their broader responsibilities In general, emerging-market CIOs struggle against regular financial setbacks, which cause companies to focus on immediate survival, the limitations of the CIOs themselves in terms of background, difficulties in recruiting sufficient IT talent, and a strong legacy of viewing IT as mainly an enabler of other corporate functions, rather than a profit contributor in its own right l Although CIOs’ control over IT expenditure is relatively weak, corporate budgets for IT expenditure are growing strongly Of the various IT investments that companies make to gain an edge in volatile markets, respondents cite business intelligence as the most important, followed by customer relationship management systems  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role I The broadening remit of the CIO I n fast-growing emerging markets, CIOs are moving out of back offices and into corporate boardrooms, as their companies try to gain a firmer foothold in international markets Our survey of 366 senior executives of emerging-market companies shows in a variety of ways that, on the whole, CIOs are rising to leadership positions within their organisations The most telling finding in this regard is that in 61% of the firms surveyed, the CIO is either already a board member or is expected to be within three years (The ratio is significantly lower in firms with annual revenue of more than $10bn.) Moreover, by 2014, only 17% of our respondents expect their CIOs to be responsible for IT only, with no broader remit The presence of CIOs on the board, and their involvement in wider corporate strategy setting, is particularly evident in smaller companies, and in industries such as banking and telecommunications, where IT sophistication is crucial to the company’s success in the market However, as their remit widens, CIOs in emerging markets often face more severe challenges than their counterparts in Western economies All too often, CIOs are surrounded by executives who have an inadequate awareness of IT capacity Still regularly perceived by senior management as peripheral to the business, CIOs in emerging markets also typically have to operate in a more volatile, faster-growing environment than their Western counterparts, with less developed infrastructure, both in terms of IT and governance However, opportunities abound, especially in terms of “greenfield” benefits, and many are taking advantage of cloud applications to accelerate growth “We don’t have old systems – there were none!” as one CIO interviewee puts it The emergence of CIOs in leadership roles within these tough environments is confirmed by indepth interviews with CIOs in the three regions under study For example, in Mobile Transactions Zambia, which provides payment services via mobile phones, Brett Magrath, chief technology officer, advises on such fundamental business issues as “at what stage we expand into new markets, and which products to add to the offering” Similarly, when Holicon, a Polish IT services company, came under new ownership in 2010, a condition of purchase was that the CIO be made a board member “They think the head of IT understands how the business runs, and wanted me to be more integrated [into senior management],” says Krzysztof Chylinski, chief information officer “Now, I focus on new systems that will make a difference to the wider business; that wasn’t the case three to four years ago.”  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role Is your company's CIO currently a member of the Board? please select one answer only (% respondents) Yes 35 No, but he/she will be within the next three years 26 No, and the company has no plans to make him/her a member within the next three years 39 To what extent is the CIO/CTO currently involved in setting overall company strategy, now and in three years' time? Select all that apply (% respondents) Now Three years ago The CIO runs IT, but is not more widely involved 34 17 This trend towards greater involvement appears strongest in the IT-driven professional services industry, where 51% of respondents expect their CIO to be a full board member, with all the responsibilities that brings, in three years’ time—up from 34% today For the sample as a whole, the proportion giving each response is 38% and 27%, respectively Furthermore, no respondent from the professional services sector expected their CIO to be running IT but not to be more widely involved in setting overall company strategy in three years’ time, down from 28% today This compares with the full-sample result of 17% in three years’ time, and 34% today To what extent is the CIO/CTO currently involved in setting overall company strategy, now and in three years' time? - The CIO runs IT, but is not more widely involved (% respondents) Now Three years time Full sample 34 17 Professional services 28 Consistent with their new leadership roles, CIOs now report to managers at higher levels of their respective organisations In 78% of companies, the CIO reports directly to the board, to the CEO or to the managing director A telling legacy of the past, however, is that in a further 18% of companies, CIOs report to other C-level executives, such as the chief operating officer or chief financial officer To whom does your organisation’s CIO/CTO report? (% respondents) Board of directors 25 CEO/President/Managing director 53 CFO/Treasurer/Comptroller COO 10 Other, please specify There is no central locus of responsibility for IT: it is spread throughout the company Don’t know  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role Nevertheless, with the majority of CIOs now on a par organisationally with other C-level executives, the trend is clear As one CIO, who is among those not yet reporting to the CEO or board, noted: “After the next business transformation, I may be reporting to the CEO.” As might be expected, CIOs of small companies are more likely (86%) to report directly to the board of directors or the CEO/president than are CIOs in large companies (72%) This is likely owing to the closer collaboration with senior management fostered by smaller company size To whom does your organisation’s CIO/CTO report? - Board of directors and CEO/President/Managing director by size of company (% respondents) Board of directors CEO/President/Managing director $100m 27 45 $500m 26 44 $100m or less 23 63 $100m to $500m 28 49 $500m to $1bn 33 $1bn to $5bn 30 39 45 $5bn to $10bn 64 $10bn or more 51 Beyond hierarchy, CIOs enjoy greater prominence for the simple reason that they are overseeing larger expenditure on IT IT budgets are rising rapidly across the three regions under study, and the increase is expected to continue Specifically, over the past three years, IT budgets have increased by more than 15% at 44% of respondents’ companies More tellingly, over the next three years, fully 60% expect to see this rate of budgetary growth Major IT budgetary increases, of more than 15%, reflect the overall expected growth patterns of the regions under examination So, in CEE, 43% of firms will experience a rise of this magnitude, compared with 66% in the Middle East and 75% in Africa The drivers of the emergence of the CIO as a prominent player in emerging-market companies go beyond a seat on the board and growing corporate IT budgets They constitute a fundamental shift in the CIO’s role, from providing technical support, to using IT in creative ways throughout the organisation in order to boost competitiveness This makes IT an integral part of corporate strategy, and tasks the CIO with contributing to both the formulation and the implementation of strategic goals  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role How has the IT budget of your company changed within the past three years, and how you expect it to change over the next three years? (% respondents) Past three years Next three years Increase of 25% or more 21 26 Increase of 15-25% 23 34 Increase of 5-15% 23 30 Stay(ed) about the same 14 22 Contract(ed) Operationally, this means that CIOs are now more likely to be directly involved with business decisions of operating divisions and support services, to ensure that all these are operating as efficiently as possible It also means they are more likely to be developing key performance indicators (KPIs) in conjunction with operating divisions and support functions, and to be introducing systems to track progress towards meeting KPI targets Along the road to introducing such systems, CIOs are being tasked with persuading operating divisions and support services to adopt these systems and to implement the data-gathering processes necessary to make them work All this takes time, however, and some CIO interviewees admit that their day-to-day IT skills suffer as a result Are there, then, any signs yet of the impact the new role of the CIO is having on emerging-market firms? Is it turning out to be a profitable exercise? While impossible to quantify at this stage— especially as this is likely to have been a matter of survival for some rapidly growing firms—there is a clear indication that the changed role of CIOs is paying off for companies by harnessing IT to broader company goals Three years ago, only 36% of emerging-market executives thought IT was well aligned with their company strategy, compared with 62% today In the words of Fahad Al Muttairi, chief information officer of Al Faisaliah Group, a Saudi Arabian conglomerate: “By sitting with management in executive meetings, the CIO is consulting and assisting in driving their business, not just his own Now IT is seen a key enabler to maintain or improve competitiveness.” Ahmad Almulla, vice-president of IT, Dubai Aluminium, adds: “I don’t look at systems directly; I’m more involved with looking at KPIs and developing roadmaps, as well as looking after people.” Our survey confirms that technical innovation is becoming a shared responsibility of business units and CIOs The proportion of companies where technological innovation is likeliest to originate within business units is roughly equivalent to the proportion where innovation tends to originate within the IT function This indicates that innovation is no longer strictly the remit of operating divisions or IT, but rather a shared responsibility for both, and for senior management As the interest of operational divisions in top-line IT increases, the CIO also has to consider technological innovation in a strategic context This is particularly true in professional services firms, where CIOs are more likely to initiate technological innovation (34%) than either the board of directors (30%) or individual business units (28%)  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role III A regional comparison N ot only are there variations between the role of CIOs in emerging markets and Western economies, but also in the three different regions under review in this report Some of this is due to cultural differences, but equally to factors such as the rate of business growth and the relative advances in technology environments The head of IT may be moving a system literally from typewriter to Internet in a remote African location, or deploying a cloud application to refine some element of customer service in a Middle Eastern country But of the three regions, where are the winds of change the strongest? Although all three regions offer examples of both rapid transformation and persistence of legacy systems, the region with the strongest indicators of change appears to be Africa This could be explained in part by the inclusion of respondents from South Africa, a relatively advanced economy As noted in Part II above, only 45% of African respondents, compared to 60% of CEE respondents, see IT as a support function within their organisation Stated more positively, 55% of African respondents, compared to 38% of CEE respondents, see IT as mainly a strategic function within their organisations Is the IT function in your organisation primarily regarded as a strategic function? (% respondents) Total sample 46 Africa 55 Middle East 44 Central and Eastern Europe 38 The same regional pattern holds in responses to other survey questions dealing with the CIO’s role In Africa, 38% of respondents say their CIOs have primary responsibility for major IT investment decisions, compared with 30% in CEE, 26% in the Middle East, and 32% in the sample as a whole Who has the primary responsibility for major IT investment decisions at your company, now and three years ago? (% respondents) Now Three years ago The CIO or head of IT 31 19 © The Economist Intelligence Unit Limited 2011 32 Corporate CIOs in emerging markets An evolving role African CIOs have also made the greatest strides over the last three years in terms of responsibility for improving cost efficiency, from 24% to 38% This 14-percentage-point increase compares to an increase of eight percentage points for the sample as a whole In your organisation, what are the principal roles of the IT department, now compared with three years ago? - Improving cost efficiency (% respondents) Now Three years ago Total sample 34 26 Africa 38 24 Middle East 25 27 Central and Eastern Europe 28 36 Similarly, when asked whether they expect the CIO’s role to expand to include business-wide strategic elements over the next year, 49% of African respondents rate this possibility as “highly likely”, compared to 16% in CEE and 32% for the total sample Do you expect the CIO’s role to expand to include business-wide strategic elements over the next year, in addition to managing day-to-day IT operations? - Highly likely (% respondents) Africa 32 49 Middle East 34 Central and Eastern Europe 16 Some of this discrepancy may be due to the faster average pace of growth in African economies compared to CEE ones It may also be due in part to relative freedom of emerging African companies from legacy IT systems and procedures, which would need to be dismantled to make room for new ones A third factor may be a still-developing framework of corporate governance and oversight, which might allow for relatively faster decision-making on large investments and major changes in strategic direction The survey data lend some credence to the “fast-growth” scenario with respect to Africa When asked how their companies’ IT budgets have changed over the past three years, and how those budgets are expected to change over the next three years, African respondents were consistently more likely to report both higher growth to date and higher growth expectations Thirty-two percent of African respondents reported growth of 25% or more over the past three years, compared to 13% in the Middle East and 19% in CEE When asked about the next three years, 40% of African respondents expected ITbudget growth of 25% or more, compared to 21% in the Middle East and 17% in CEE 20 © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role Is the IT function in your organisation primarily regarded as a strategic function that increases competitiveness, or a support function? (% respondents) Total sample 53 Central and Eastern Europe 60 Middle East 57 Africa 45 21 © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role Conclusion A lready under greater pressure than IT chiefs in Western economies, the trends identified in this report suggest that CIOs will continue to strengthen their positions as information becomes an increasingly valuable (and available) asset in emerging-market firms The transformation of the CIO from implementer to decision-maker has occurred rapidly so far, and is expected to continue to so; 76% of our survey respondents expect the CIO’s role to broaden to include business-wide strategic elements over the next year One of the interviewees for this study suggested that an IT background is a big career asset in a time of rapid technological change: “Someone with a technical background can adapt better to business than the other way around,” he said As the role shifts, versatility will become the touchstone for the emerging-market CIO Indeed, some see the information function taking on new dimensions, with IT as “the reporting hub of the company” and the CIO as “chief process officer”, responsible for ensuring clarity and efficiency throughout the business Clearly, that is a tall order, and CIOs cannot all this alone To be effective, they require the active support of business unit heads and the backing of senior management This survey shows that this has begun, with the fastest change occurring in Africa, in small companies, and in IT-dependent sectors such as financial and professional services Experts generally reckon it will take several years for emerging-market firms to develop the same structure to incorporate IT in way that Western companies have done How well and how thoroughly all types of companies in emerging markets embrace the IT revolution will influence their competitiveness in the digitalised economy of the future 22 Taking the reins service to financial reporting—including the details of their business processes “CIOs today can’t wait for the business to ‘come and ask’,” says the CIO of one emerging-market company Here are some of the measures that our interview participants recommend to broaden the remit of the CIO: l – Develop: CIOs should seek out IT architecture that is scalable and flexible enough to accommodate further growth l – Integrate: CIOs should standardise and integrate data that support executive decision-making, including creating dashboards l – Act: At a time of repaid IT advances and fast economic growth, CIOs have a unique opportunity to play a pivotal role in upgrading their companies’ capabilities l – Connect: CIOs should endeavour to speak the language that business executives recognise l – Inquire: CIOs should actively deepen their understanding of multiple aspects of the business, from marketing and customer l – Inform: CIOs should keep abreast of technology developments and keep fellow executives informed © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role Appendix: Survey results Is the IT function in your organisation primarily regarded as: (% respondents) A strategic function, which increases the firm’s competitiveness 46 A support function 53 Other, please specify What is the career background of the CIO/CTO at your company? Select all that apply (% respondents) IT/technical 75 General management 18 Operations 17 Financial 14 Sales/marketing R&D Manufacturing Don't know Other, please specify Which of the following is most likely to initiate technological innovation within the company? (% respondents) The IT function 30 Business units 29 The Board of Directors 24 Customers External consultants or system integrators Suppliers Don’t know Other, please specify 23 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role Who has the primary responsibility for major IT investment decisions at your company, now and three years ago? Please indicate who this was three years ago, and who this is now (% respondents) Now Three years ago The CEO/the Board of Directors 47 48 The CIO or head of IT 31 32 Business unit 12 The CFO 7 An outside contractor or integrator Don’t know Other, please specify In your organisation, what are the principal roles of the IT department, now compared with three years ago? Please select the top three as they were three years ago, and the top three now (% respondents) Now Three years ago Enabling system and network security 49 54 Training staff in the effective use of IT 17 24 Improving cost efficiency 26 34 Enabling revenue generation 24 16 Ensuring compliance with regulatory requirements 21 23 Enabling the use of social networks to support corporate functions 12 Optimising supply-chain operations and/or purchasing 13 10 Providing IT support to all departments 45 Facilities maintenance/planning 11 14 Document/records management 15 17 Improving interaction with customers 13 18 Providing customer intelligence data 13 Other, please specify 24 0 © The Economist Intelligence Unit Limited 2011 62 Appendix Survey results Corporate CIOs in emerging markets An evolving role Do you expect the CIO’s role to expand to include business-wide strategic elements over the next year, in addition to managing day-to-day IT operations? (% respondents) Highly likely 32 Somewhat likely 44 Somewhat unlikely 14 Highly unlikely None of the above The CIO’s role is already central to formulating company strategy To what extent is the CIO/CTO currently involved in setting overall company strategy, now and in three years' time? Select all that apply (% respondents) Now Three years time The CIO offers advice, but the business makes the decisions 45 34 The CIO is consulted, but he/she is just one of a number of stakeholders 37 30 The CIO is a full board member, with all the responsibilities that brings 27 38 The CIO runs IT, but is not more widely involved 34 17 The CIO drives innovation and often initiates business change 21 32 Don’t know None of the above 1 Other, please specify 0 Is your company's CIO currently a member of the Board? Please select one answer only (% respondents) Yes 35 No, but he/she will be within the next three years 26 No, and the company has no plans to make him/her a member within the next three years 39 25 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role How would you rate the alignment of the IT department's activities with overall company strategy now versus three years ago? (% respondents) Perfectly aligned Not at all aligned Now 16 46 28 Three years ago 28 37 21 Please rate your level of agreement with the following statements (% respondents) Strongly agree Strongly disagree The CIO has a major say in decisions on overall company strategy 16 29 26 19 10 The CIO has a major say in decisions on risk, compliance and governance 12 29 36 18 The CIO has a major say in decisions on budgets and cost cutting 13 26 28 24 10 29 10 The CIO has a major say in decisions on training and human resources 21 30 The CIO has a major say in decisions on significant capital expenditure 10 24 33 25 The CIO has a major say in decisions on company operations 10 29 35 20 The CIO is not consulted on most aspects of company strategy or operations 22 24 10 27 In your view, how will the IT department interact with other parts of the company over the next three years? The IT department will… (% respondents) Strongly agree Strongly disagree Focus closely on understanding the needs of other departments 35 43 16 51 Provide business units with relevant metrics and regular reports on those metrics 30 35 23 10 Implement major new projects based on company-wide objectives 24 38 27 Proactively look for ways to make business processes more efficient 31 34 19 12 Educate senior management about the impact that new technologies can have on their operations 30 31 24 13 Gain more senior-management support for implementing new technologies 28 26 34 25 10 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role How has the IT budget of your company changed within the past three years, and how you expect it to change over the next three years? (% respondents) Past three years Next three years Increase of 25% or more 21 26 Increase of 15-25% 23 34 Increase of 5-15% 23 30 Stay(ed) about the same 22 14 Contract(ed) To whom does your organisation’s CIO/CTO report? (% respondents) Board of directors 25 CEO/President/Managing director 53 CFO/Treasurer/Comptroller COO 10 Other, please specify There is no central locus of responsibility for IT: it is spread throughout the company Don’t know Which kinds of technology are most important in enabling the CIO to play a significant strategic role in managing volatile emerging markets? Select up to three (% respondents) Business intelligence 51 Customer-relationship management 49 Enterprise resource planning (ERP) 34 Software-as-a-service 31 Cloud computing 26 Supply-chain management 26 Service Oriented Architectures (SOA) and middleware 25 Open source 12 Other, please specify Don't know/Not applicable 27 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role How is the performance of IT measured in your organisation? Select all that apply (% respondents) Response time 51 Return on investment in IT 35 Uptime 30 Contribution to the revenue growth of the business 30 Contribution to the firm’s ability to control or cut costs 30 The IT department is measured purely as a cost centre 25 Effect on corporate profit margins 15 IT’s performance is not measured 10 Don’t know Other, please specify Which of the following best describes your job title? (% respondents) Board member CEO/President/Managing director 34 CFO/Treasurer/Comptroller 11 CIO/Technology director CRO/Chief risk officer Chief compliance officer Other C-level executive SVP/VP/Director 10 Head of business unit Head of department Manager Other, please specify 28 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role In which region are you personally based? (% respondents) Central and Eastern Europe 38 Africa 31 Middle East 30 What are your main functional roles? Choose up to three (% respondents) General management 46 Strategy and business development 38 Finance 30 IT 23 Marketing and sales 17 Operations and production 17 Customer service 13 Risk 13 Information and research Human resources Supply-chain management Procurement R&D Legal Other 29 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role What is your primary industry? (% respondents) Financial services 24 Professional services 13 Manufacturing Construction and real estate Energy and natural resources Retailing Transportation, travel and tourism Education Government/Public sector Consumer goods Logistics and distribution IT and technology Telecommunications Healthcare, pharmaceuticals and biotechnology Agriculture and agribusiness Automotive Chemicals Entertainment, media and publishing Aerospace/Defence 30 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role What are your company's annual global revenues in US dollars? (% respondents) $100m or less 43 $100m to $500m 18 $500m to $1bn 14 $1bn to $5bn 13 $5bn to $10bn $10bn or more 10 31 © The Economist Intelligence Unit Limited 2011 While every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in this white paper GENEVA Boulevard des Tranchees 16 1206 Geneva Switzerland Tel: +41 22 566 24 70 E-mail: geneva@eiu.com LONDON 25 St James’s Street London, SW1A 1HG United Kingdom Tel: +44 20 7830 7000 E-mail: london@eiu.com FRANKFURT Bockenheimer Landstrasse 51-53 60325 Frankfurt am Main Germany Tel: +49 69 7171 880 E-mail: frankfurt@eiu.com PARIS rue Paul Baudry Paris, 75008 France Tel: +33 5393 6600 E-mail: paris@eiu.com DUBAI PO Box 450056 Office No 1301A Thuraya Tower Dubai Media City United Arab Emirates Tel: +971 433 4202 E-mail: dubai@eiu.com [...]... towards ensuring clarity and timeliness in reporting results “Transparency and control are becoming more important issues for IT,” he says Beyond transparency and controls, IT tools that allow companies to streamline processes and to 14 © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role Which kinds of technology are most important in enabling the CIO to... is a resistance to overhauling processes and implementing new systems to replace the known and familiar This has nudged CIOs in many emerging- market companies into the role of “chief IT trainer”, responsible for explaining the benefits and the workings of new systems and persuading other departments to embrace them CIOs participating in our in- depth interview programme point to progress in this regard... Providing IT support to all departments 45 Facilities maintenance/planning 11 14 Document/records management 15 17 Improving interaction with customers 13 18 Providing customer intelligence data 7 13 Other, please specify 24 0 0 © The Economist Intelligence Unit Limited 2011 62 Appendix Survey results Corporate CIOs in emerging markets An evolving role Do you expect the CIO’s role to expand to include... development 38 Finance 30 IT 23 Marketing and sales 17 Operations and production 17 Customer service 13 Risk 13 Information and research 7 Human resources 6 Supply-chain management 5 Procurement 4 R&D 4 Legal 3 Other 1 29 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role What is your primary industry? (% respondents) Financial services... Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role III A regional comparison N ot only are there variations between the role of CIOs in emerging markets and Western economies, but also in the three different regions under review in this report Some of this is due to cultural differences, but equally to factors such as the rate of business growth and the relative advances... actively deepen their understanding of multiple aspects of the business, from marketing and customer l – Inform: CIOs should keep abreast of technology developments and keep fellow executives informed © The Economist Intelligence Unit Limited 2011 Appendix Survey results Corporate CIOs in emerging markets An evolving role Appendix: Survey results Is the IT function in your organisation primarily regarded... Limited 2011 Corporate CIOs in emerging markets An evolving role Holicon: Introducing the “chief process officer” When a company is growing quickly, business processes are often developed on the fly—and not necessarily in the most efficient way Polish IT services provider, Holicon, which provides customerservice call centres and outsourced human resources administrative services, is a case in point When... are clear: emerging- market growth is rapid, and so is technological progress To keep up with modern methods and remain competitive, many companies in emerging markets are deciding they must put advanced IT at the heart of their operations The IT tools themselves are helping CIOs to persuade their managements to invest in modernisation CIOs cite business intelligence, customer-relationship management... l – Integrate: CIOs should standardise and integrate data that support executive decision-making, including creating dashboards l – Act: At a time of repaid IT advances and fast economic growth, CIOs have a unique opportunity to play a pivotal role in upgrading their companies’ capabilities l – Connect: CIOs should endeavour to speak the language that business executives recognise l – Inquire: CIOs. .. difficulty of IT gaining a strategic overview of a very large company The legacy view of the IT department’s role is visible elsewhere in our survey results For example, 16 © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role 51% of companies say the performance of IT is measured in terms of response time—suggesting that the support role played by IT is ... management systems  © The Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role I The broadening remit of the CIO I n fast-growing emerging markets, CIOs. .. Economist Intelligence Unit Limited 2011 Corporate CIOs in emerging markets An evolving role III A regional comparison N ot only are there variations between the role of CIOs in emerging markets and... results Corporate CIOs in emerging markets An evolving role Do you expect the CIO’s role to expand to include business-wide strategic elements over the next year, in addition to managing day-to-day