georges' blog

April 23, 2007

Gartner Symposium: Megatrends

Filed under: Gartner Symposium 2007,Technology — kendall @ 1:04 pm

There weren’t a lot of major shockers at the Megatrends seminar. Perhaps the most interesting point that was made was that the number one priority for CIOs is how they can use IT to fuel business growth. This is a trend from the past few years. However Gartner predicts that in five years, the number one priority for CIOs will be using IT to grow their customer base and relations. Here are some quick sound bites from the Megatrends seminar:

  • Greatest growth economic growth is in the developing nations, nations like India, China, Mexico… No surprise here.
  • Economic growth in the west is predicted to be lower than the overall global growth rate. The US growth rate is predicted to be 2.2% which represents a major slow down from previous years.
  • CEOs are confident that their companies are likely to experience revenue growht over the next 12 months and 3 years.
  • IT budgets will get greater scrutiny. IT budgets are expected to grow 3% globally.
  • By 2008, nearly 50% of data centers will lack necessary power and cooling.
  • Growing disatisfation with outsourced IT among customers of the top ten providers.
  • Prediction for the future: Should I as CIO server IT operations from my responsibilities? The CIO would still be responsible for design, planning, or implementation, but operations would be handed over to another business unit, like the COO.
  • CIO’s are asking how do I reduce the cost of IT security. This is heading in the wrong direction. IT security already does not have adequate attention from the CIO.

Gartner Symposium: Welcome Keynote

Filed under: Gartner Symposium 2007,Technology — kendall @ 11:53 am

This is my first Gartner ITxpo and Symposium and they’ve made a good first impression. The main keynote auditorium is very professionally set up. It’s like a rock concert–the sound and video system is top notch with bass you can feel. I am also grateful for comfortable chairs at the Moscone Center since my butt is going to be in one for eight hours a day all week long. In February, I attended the Southwest regional conference for Educause and the chairs at the Omni in Austin were murder. After about 45 minutes your glutes were asleep–it was genuinely hard to pay attention. In any case forget about the seats and the eye candy. The content of the kick off address was powerhouse–attention getting. Gartner CEO, Gene Hall, started things off by telling us that IT was in trouble. We are looking a decline in IT growth from 4.8 % in 2007 to 4.2% in 2008 with that trend continuing for three more years for a total of 5 years of declining growth in the IT sector. Considering that the IT sector is growing in Asia, this is very bad news for IT in the US and Europe. The problem in a lack of innovation and ideas. Innovation is stagnant in the west. Generally speaking IT vendors are afraid to be the first movers… they are risk averse.

Here are a few of the take aways from the first keynote:

  • The current trend is for decentraliazed decision making
  • IT projects are never finished. Implement when they are 80% ready. “Beta is beautiful.”
  • Consider IT from the perspective of business impact for the dollar. Use finacial metric, ROI.
  • 30% of all IT budgets are spent at the businessunit level.
  • Integrate IT in business decision making–IT is not secondary, but should be viewed as foundational to business success
  • “IT has the power to destroy business”–It has the power to destroy your competition when leveraged properly; it has the power to destroy your own business if it is not utilized properly
  • The customer must be at the center of decision making
  • “Be a hero of the IT revolution.”
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