2021 CIO Agenda: Time for Catalunya to Seize the Moment ...

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2021 CIO Agenda:Time for Catalunya toSeize the Moment and Deserve the Money

In collaboration with:

Daniel Sanchez Reina, Fabrizio Magnani, Jordi Escalé

2 © 2020 Gartner, Inc. and/or its affiliates. All rights reserved.

Contents

1. Study Methodology

2. Key Finding #1

Historic Opportunity to Increase Your Influence

• Supporting Data

• Recommendations

3. Key Finding #2

You’ve got the money! Investments in technology

will continue to grow

• Supporting Data

• Recommendations

4. Recommended Gartner Resources


Respondent profile: Regions

North America33%

EMEA37%

APAC22%

n =1.877 All Respondents

Q. Where is your primary worksite located?

Source: 2021 Gartner CIO Survey

ID: 123456

Latin America9%

70 respondents

from Catalunya

1877 respondents worldwide


Respondent profile: Segments

n =1.877 All Respondents


ID: 123456

16%

73%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Top Performers Typical Performers Trailing Performers

Segment Profiles (worldwide)

Definition of Top-Performer (meet all three):

• Relative business performance compared with

competitors is ahead of where it would have been

had COVID-19 not become a global pandemic

• Organization’s digital initiative is in the scale or

refine stages (the two top categories)

• Organization has already planned and implemented a

post-COVID19 strategy




Key Finding #1

Historic Opportunity to Increase Your Influence


COVID-19 Has Been a Business Accelerator and a Resiliency Enhancer for

Many

In Catalunya…


COVID 19 Was A Performance Catalyst For Many

n = ~53 Catalunya respondents, Excludes "Not sure/Not applicable"Q. In the following performance areas, would you assess your enterprise as ahead or behind where it otherwise would be had COVID-19 not become a global pandemic?


ID: 123456

Covid-19 impact on Business Metrics

Percentage of respondents who are ahead or far ahead

38%

43%

32%

33%

100%

54%

48%

67%

0% 50% 100%

Relative business performance ofthe enterprise compared with

competitors

Ability to fund new businessinitiatives

Buyer willingness to purchase ourproducts/services through the

channels we sell them

Long-term viability of ourenterprise

Catalunya

Top performers

Covid-19 has proven to be

a Business Accelerator

for 38%

Covid-19 has been an

opportunity to

increase Business

Resilience for some


18%

46%

35%

0%

50%

100%

2020

Maturing

Initiating

No digitalinitative

n = 70 Catalunya respondents, Excludes "Not sure"Q: Which of these best describes the stage of your organization’s digital initiative — i.e., your organization’s digitalization efforts?


Notes: Dates on the chart reflect year of data collection, not the cover year of the report; . May not sum to 100% due to rounding;

No Digital initiative = No Digital Initiative, Desire/Ambition. Initiating = Designing, Delivering.. Maturing = Scaling, Harvesting/Refining

ID: 123456

Stage of Digital Maturity

Percentage of Respondents

Digital Business Maturity is Improving

n = 70 Catalunya respondents, Excludes "Not sure"Q: Which of these best describes the stage of your organization’s digital initiative —

i.e., your organization’s digitalization efforts?


ID: 123456

1%

17%

9%

37%

24%

11%

2%

13% 13%

25%

30%

18%

0%

25%

50%

No digitalinitiative

Ambition Design Deliver Scale Refine

Catalunya Total

zoom-in

No digital initiative

Initiating

Maturing

Catalunya digitalization is in a

reasonable good shape. Still

room for improvement compared

with worldwide.


Digitalization Focused On Costs, Not Revenue

Digital Processes (Internally Facing, Average %)

Dig

ita

l “B

us

ine

ss

”

(Exte

rna

lly F

acin

g, A

ve

rag

e %

)

n = 70 Catalunya, ~1,831 (Total), ~196 (Banking) ~33 (Oil & gas), all answeringX-Axis: What percentage of your enterprise’s processes) have been optimized (made more efficient) through digital means?

Y-Axis: What percentage of your organization’s total revenue would you attribute (or expect) as digital sales revenue?


ID: 123456

Average (Mean) percentage of revenue from digital sales vs

Average (Mean) percentage of digitized processes

Banking trend line (Most

mature Industry)

Oil and Gas trend line (Least

mature Industry)

Catalonya trend line

Total trend line 2018

20202022

20182020

2022

20182020

2022

2018 20202022

0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

High-CostNew Business Models

OldBusiness Models

SustainableNew Business

Models

Low-CostOld Business

Models

Fast internal digitalization.

Slow conversion into CX

and/or digital revenue


CIOs’ Influence Has Increased Significantly…

But Temporarily?

In Catalunya…


16%

23%

27%

30%

34%

33%

84%

77%

73%

68%

66%

67%

0% 50% 100%

CIO educating CEO and other senior stakeholders on the value of IT,especially in a crisis

CIO measuring and articulating IT value

CIO assuming leadership of high-impact initiatives

Engagement of CIO with CEO (especially ad hoc, informal interactions)

Strength of the relationship between CIO and CEO

CIO deepening knowledge of the specific business operations to provideadvice to business leaders

Small/Significant Decrease No Change Small/Signifcant Increase

n = 70 Catalunya respondents, Excludes "Not sure/Not applicable"Q. How would you characterize the following changes related to your enterprise’s IT leadership as a result of the COVID-19 pandemic?


Not showing data labels for percentages less than 3%

ID: 738401

Changes in CIO-Business RelationsPercentage of respondents

Covid-19 has

been an

Influence

Enhancer

CIOs Are Contributing To Strategic Changes


CIOs Are Setting the Bar High for 2021

In Catalunya…


Customers’ Needs Are Met Digitally

n = ~70 Catalunya respondents, Excludes "Not sure/Not applicable"Q. How would you characterize the changes that have occurred in your enterprise as a result of the COVID-19 pandemic in each of these

areas? vs How do you expect these aspects of your enterprise to change in 2021 compared with their status today?


ID: 123456

Changes in Customer/Citizen Engagement Due to COVID-19 and Expected in 2021

Percentage of Catalunya Respondents reporting/expecting an increase

81%

66%

54%

47%

84%

81%

71%

45%

0% 50% 100%

Use of digital channels to reach customers/citizens

Use of self-service by customers/citizens

Demand for new digital products and services

Degree of customer engagement (in contrast to atransactional relationship)

2020

2021

Wow!

You are expecting to

increase the good work

you have already done on

Customer Engagement…

even more…

Comparison with Top Performers Worldwide:

• 2020: Top Performers exhibit approx 10 p.p. more in all the categories

• 2021: Very similar percentages


Disruption Put A Spotlight On IT


n = ~53 Catalunya , Excludes "Not sure/Not applicable“Q. How would you characterize the changes that have occurred in your enterprise as a result of the COVID-19 pandemic in each of these areas?

vs How do you expect these aspects of your enterprise to change in 2021 compared with their status today?


ID: 123456

Changes in IT Due to COVID-19 and Expected in 2021

43%

49%

26%

24%

61%

73%

54%

50%

0% 50% 100%

Funding of digital innovation

Strategic rather than tactical focus of IT investment

IT head count

Investment in training IT workforce

2020

2021

… to build a rather strategic IT

… to increase your head count

Wow!

You are expecting to get

more money…

… to train your team

Comparison with Top Performers Worldwide:

• 2020: Top Performers exhibit 20 p.p. more in Funding

• 2021: IT head count increase: 46% respondents vs 54% in Catalunya


Such High Expectations Can Be Wishful Thinking or

Golden Opportunities…

It Depends on How CIOs Drive Them


Recommendations (1/3)

Catalyze a Digital Mindset in the C-Suite to Accelerate your Digital Business

Transformation

In order to continue enhancing and digitalizing your business model you have to partner with the C-Suite; you will not achieve it alone. Then

your contribution to the business will be crystal clear and your influence will increase going forward. However, bear in mind that the C-Suite

has, on average, scant digital mindset. You must catalyze that discussion.

Unbox your Enterprise’s Business Model with ‘digital

eyes’

Dedicate time with the C-Suite to revisit your Business Model

and ask yourselves questions like:

o ‘What Value Propositions to our customers could we

deliver faster, better or cheaper with digital

developments/infrastructure?’

o ‘What Capabilites (digital technology or skills) should we

acquire to create new digital Value propositions?’

See How CIOs Can Foster Business Model Innovation

Through Workshops (G00466847)

Question Nondigital products

Whenever someone puts forward a nondigital solution, ask

yourselves (the C-Suite):

o ‘Is there a digital version of it?’ and/or ‘Is there a digital

path to get it?

See “Identifying Digital Opportunities During and After the

Pandemic” (G00724392)

An additional resource you can use is:

“Digital Business Maturity Model: 9 Essential Competencies to Assess

Digital Business Maturity” (G00723533)

https://www.gartner.com/document/3982383





Leverage on Existing Digital Ecosystems

Do not reinvent the wheel when it comes to finding the best ways to accelerate your digital business transformation. There are many existing

digital ecosystems out there that can fulfill the technological capabilities you need to meet the value propositions of your business model.

Remember that you will not be valued by what you do but by what you get.

Get to know the existing Digital Ecosystems

• Learn about various strategies to choose/partner with

Digital Ecosystems.

o See “8 Ways Ecosystems Supercharge Digital

Business Models” (G00721617).

o Find success cases from six different industries in

“Lessons From China: Business Model Resilience in

the Coronavirus (COVID-19) Outbreak”

(G00722606).

• Learn how Digital Dragons can influence your industry and

how you can partner with them beyond their tech providers

remit.

o See “Executive Leaders Must Become Dragon

Strategists” (G00721856).

Instill a Digital Ecosystems culture in your company

• Share all the learnings from the previous

recommendation with the C-Suite, in order to raise

awareness on the convenience of leveraging on digital

ecosystems.

• Find a systematic way of doing it in “The CIO Leading

Role in Reacting to the Emergence of Digital Dragons in

Their Industry” (G00465914).







Avoid Backsliding to the ‘Pre-Pandemic CIO’

Going back to the pre-pandemic behaviors in IT (i.e. mindsets and practices) will be a sweet temptation, specially for those new behaviors

whose roots have not been planted deep enough during the pandemic. Some examples of new behaviors that many IT organizations –and

most likely yours as well- have displayed during the pandemic are: acceleration of technological deployments, IT training (nobody had time

for it before), secured IT funding.

The pre-pandemic CIO will perpetuate the pre-pandemic Enterprise, without incorporating any of the new good things.

Some specific recommended reading:

➢ “6 Pre-COVID-19 Assumptions That Should Perish With the Virus” (G00723296)

➢ “The Culture PRISM: 5 Dimensions That Shape Your Culture” (G00718748)

➢ “Changing Behaviors: From Risk Aversion to Smart Risk-Taking” (G00448185)

Do not backslide by following these three steps:

• Pause: make an inventory of all the that-was-not-in-our-DNA things that, incredibly and unexpectedly, your IT organization has

done during the pandemic.

• Evaluate: make up your mind about which of those incredible and unexpected behaviors you want to keep post-pandemic and

at what extent/speed.

• Shape: start adapting your systems, processes and practices to make them the new reality moving forward.







Key Finding #2

You’ve got the money!Investments in Technology will Continue to Grow


Despite the crisis, IT Budgets will continue to

grow

In Catalunya…


Changes in Overall and IT Budget


In past crises, CIOs were

asked to cut spending.

This time, CIOs expect IT

Budget to increase.

You have the money!

Despite the Setbacks of 2020, Most Enterprises in Catalunya Should See Overall and IT Budgets Increase in 2021

32%20%

14%27%

54% 53%

0%

50%

100%

Revenue/overall budget/turnover IT budget

Increase

Stay the same

Decrease

Average: +2.6% Average: +1.9%

n = 65, Catalunya respondents, Excludes "Don't know"Q. By what percentage do you expect your enterprise’s revenue/overall budget/turnover to increase or decrease from 2020 to 2021?

n = 66, Catalunya respondents, Excludes "Don't know"Q. By what percentage do you expect your enterprise’s IT budget to increase or decrease from 2020 to 2021?


RESTRICTED DISTRIBUTION


n varies by segment, Excludes "Don't know"Q. By what percentage do you expect your enterprise’s revenue/overall

budget/turnover to increase or decrease from 2020 to 2021?


ID: 738401

Expected Changes in Overall and IT Budget in 2021


Despite the Setbacks of 2020, Most Enterprises Worldwide Should See Overall and IT Budget Increase in 2021

30% 25%

17% 18%

53% 57%

0%

50%

100%

Total (n = 1,596) Top Performers (n = 255)

Increase

Stay the same

Decrease


23% 20%

25%21%

52% 60%

0%

50%

100%

Total (n = 1,668) Top Performers (n = 266)

Increase

Stay the same

Decreasen varies by segment, Excludes "Don't know"Q. By what percentage do you expect your enterprise’s IT budget to

increase or decrease from 2020 to 2021?

Source: 2021 Gartner CI Survey

ID: 738401


OVERALL

BUDGET

IT

BUDGET

Notice that only Top Performers’ IT

Budget increase more than their

Overall Budget



Game-Changing Technologies Are the

Same as Worldwide, but in the opposite order

In Catalunya…



Game-changer Technologies


Once again, D&A and AI

are by far considered

the game changers

going forward in Spain

and Portugal

“Game Changers” for Catalunya: Technologies that will Lead to a Breakthrough in the Enterprise

For your reflection:

The CIO universe worldwide

puts more emphasis on AI than

on D&A

31%16%

10%10%

9%9%

6%6%6%6%

4%4%4%

3%3%3%

1%1%1%1%1%1%1%1%

3%

0% 25% 50%

Business Intelligence and Data analytics

Artificial intelligence/machine learning

Ecommerce and OmniChannel

ERP

Agile practices and tools (includes Devops, Low code,…

RPA/ office process automation

Cloud (including XaaS)

Customer/Citizen/User Experience

Digital capabilities

Mobile

CRM

Cybersecurity

Digital Workplace

Digital Twin

Industry specific

Internet of Things

3D

Automation (physical, robots)

Autonomous Vehicles

Blockchain

Compute modernization (Desktop VDI, SDDC, Middleware)

Immersive Experience (including AR and VR)

Network/communications modernization

Other

None

n = 67 Catalunya respondents, Excludes "Don't know/No answer" Q. Which technology area do you expect will be a “game changer” for your enterprise in 2021?


Coded open-text responses. Multiple responses allowed.


However, CIOs Will Put the Money Somewhere Else…

In Catalunya…


65%

63%

53%

50%

49%

49%

46%

40%

38%

28%

28%

25%

24%

22%

22%

16%

13%

13%

12%

6%

4%

4%

3%

1%

61%

62%

52%

45%

34%

29%

32%

38%

47%

43%

35%

22%

42%

22%

34%

19%

35%

24%

19%

4%

8%

21%

13%

1%

2%

1%

Business intelligence/data analyticsCyber/information security

Cloud services/solutionsProcess automation

Digital workplaceE-commerce/citizen portal/website

Customer relationship management solutionsDigital business initiatives

Artificial intelligence/machine learningCustomer/user experience

Mobile applicationsBusiness continuity management

API architectureCommunications/connectivity

Software development or upgradesInternet of Things

Core system improvements/transformationInfrastructure and data centerEnterprise resource planning

Industry-specific solution5G

ContainerizationKubernetes

Quantum computingOtherNone

Catalunya

Top performers

n = 68 Catalunya respondents ,289 (Top performers) Excludes "Not sure"Q. What are the technology areas where your enterprise will be spending the largest amount of new or additional funding in 2021 compared with 2020?


ID: 738401

Technology Areas for New Funding in 2021


Data Analytics and Security Are the Top 2021 Plans

Keep a close eye on

these investments,

key for growth – AI

was 2nd position last

year… now it is 9th

Investments related to

remote work appear

to be taking the lead


1%

9%

15%

9%

21%

43%

51%

29%

63%

46%

6%

21%

28%

31%

38%

28%

26%

35%

18%

37%

9%

19%

24%

26%

16%

13%

9%

24%

10%

12%

18%

28%

15%

24%

15%

10%

6%

12%

7%

4%

66%

24%

19%

10%

10%

6%

7%

1%

1%

0% 50% 100%

Digital workplace to support working from home

Robotic process automation

Distributed cloud

Artificial intelligence/machine learning

Multi-experience development platform

Digital twin

Edge computing

5G

Augmented humans

Blockchain/distributed ledger

No interest Will deploy in 2-3 years Will deploy in 12-24 months Will deploy within next 12 months Have already deployed

n = 68 Catalunya respondentsQ. What are your enterprise's plans in terms of the following digital technologies and trends?


Adoption Plans for Emerging Technologies


Digital Workplace Has Surged in 2020 You’d better advance

deployment of AI as

much as possible


The Challenge Will Be To Deliver the Promise on the

Agreed-Upon Areas of Investment

In Catalunya…


Disruption Put A Spotlight On IT


n = ~69 Catalunya respondents, Excludes "Not sure/Not applicable“Q. How would you characterize the changes that have occurred in your enterprise as a result of the COVID-19 pandemic in each of these areas?

vs How do you expect these aspects of your enterprise to change in 2021 compared with their status today?


ID: 123456

Changes in IT Due to COVID-19 and Expected in 2021

Ensure 2021

investments are

oriented to Digital

Innovation and

Strategic Initiatives

(i.e. Walk the Talk)

43%

49%

26%

24%

61%

73%

54%

50%

0% 50% 100%

Funding of digital innovation

Strategic rather than tactical focus of IT investment

IT head count

Investment in training IT workforce

2020

2021



Focus on IT Smart Spending Criteria

You expect to be given more money. And you probably will get it -and in huge amounts- because your company needs to accelerate their

digital business transformation… but you will not be allowed to manage it necessarily. You will be under a severe scrutiny unless you prove

you apply smart spending criteria.

Cost cutting in times of recession and generous spending in times of prosperity –or when you’ve got the money- are short term actions that

can harm the longer term growth of your company and your reputation. Your decisions must be driven by business value at all times. Smart

Spending means making expense and investment decisions based on the “amount of sustainable business” they will produce, not on the

automatic reactions led by the sign of times.

Ensure your IT initiatives are

aligned with your company’s

digital strategy

It is critical for the buy-in of your

initiatives by the C-Suite.

Follow the advice in “CIOs Must

Master Four Views of Spend to

Manage IT Finances”

(G00382040).

Revisit all your spending plans to reallocate

funding to digital innovation

Apply the 3 magical questions your CEO wants an

answer for:

o ‘How much revenue will that initiative give us?’

o ‘How much cost will it save?’

o ‘Which risks will it mitigate?’

See “Spend Smarter to Accelerate COVID-19

Recovery and Renewal” (G00727064) to identify

momentous focus areas.

Create a culture of smart

spending in your IT organization

-which is not just cost-cutting

Learn how to achieve it in “Create

a Culture of IT Smart Spending”

(G00725352).

Do not limit it to your management

team, ensure that it cascades

down to all levels of the

organization.






Do Not Fall Prey to Enhancing Remote Work Experience As Your First Priority

You want to improve the technological conditions of remote workers, and that is great. And most likely you will be pushed by the rest of

business areas to do it. However, remember that you are not paid to do what you are told to do but to do what brings more business value.

Do not overlook the game-changing technologies and initiatives that will grow your business going forward. Otherwise you will be

remembered as ‘the guy who enabled remote work for us’ instead of ‘the guy who brought us more business value’.

Identify patterns about potential markets to grow the business

In conjunction with the rest of business units, use data analytics and

predictive analysis to discern patterns about potential markets to grow.

See “When and How to Combine Predictive and Prescriptive Techniques to

Solve Business Problems” G00723079).

Start/Keep putting a close eye on AI

• If you have not explored AI yet, learn how to start providing your company with value from AI in “What Is Artificial Intelligence? Seeing Through the Hype and Focusing on Business Value”(G00730970).

• If you have already started implementing AI at some extent, expand its possibilities with the information and advice you will get in “2021 Planning Guide for Data Analytics and Artificial Intelligence” (G00732258) and “Five Ways Artificial Intelligence and Machine Learning Deliver Business Impacts” (G00431403).

• Use MVPs to keep the enterprise engaged.

Revise -and remake, if necessary- your Customer Experience

Strategy in the wake of the pandemic

See “The Essence of a Customer Experience Strategy” (G00720549).

43% of top performers worldwide have deployed or plan to deploy

multiexperience development platforms for synchronizing the customer

experience across channels. And nearly 40% plan to increase their

investment in customer experience, CRM and e-commerce or citizen-

service portals in 2021

https://www.gartner.com/document/code/723079






Recommended Gartner Resources

CIOs Must Turn to Business Challenges to Sustain Their Crisis Momentum G00731003

The 2021 CIO Agenda: Seize This Opportunity for Digital Business Acceleration G00734780

Solve Your Chronic Problems Before They Kill the Business G00466038

Follow 5 Steps to Architect Your Enterprise Operating Model G00377025

Gartner Essential Frameworks G00724610

Three Steps to Hyperautomation G00728868









Fabrizio MagnaniSr Executive Partner, Gartner Executive Programs

Hexagon Glòries Building, 47-49 Sancho D’Avila Gran Via | 08007 Barcelona)

Jordi Escalé Sr Executive Partner, Gartner Executive Programs

Hexagon Glòries Building, 47-49 Sancho D’Avila Gran Via | 08007 Barcelona

A Gartner EXP Initiative in collaboration with CIOs.cat

2021 CIO Agenda: Time for Catalunya to Seize the Moment ...

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