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NAME: ________________________________________Due Date: ____________________ TITLE OF ARTICLE: __________________________________________________________ SUMMARY CRITIQUE The 2020 SIM IT Issues and Trends Study MIS Quarterly Executive Volume 20 Issue 1 Article 8 March 2021 The 2020 SIM IT Issues and Trends Study Leon Kappelman Chris Maurer Ephraim R. McLean Kevin Kim Vess L. Johnson See next page for additional authors Follow this and additional works at: https://aisel.aisnet.org/misqe Recommended Citation Kappelman, Leon; Maurer, Chris; McLean, Ephraim R.; Kim, Kevin; Johnson, Vess L.; Snyder, Mark; and Torres, Russell (2021) "The 2020 SIM IT Issues and Trends Study," MIS Quarterly Executive: Vol. 20 : Iss. 1 , Article 8. Available at: https://aisel.aisnet.org/misqe/vol20/iss1/8 This material is brought to you by the AIS Journals at AIS Electronic Library (AISeL). It has been accepted for inclusion in MIS Quarterly Executive by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contact
[email protected]. The 2020 SIM IT Issues and Trends Study Authors Leon Kappelman, Chris Maurer, Ephraim R. McLean, Kevin Kim, Vess L. Johnson, Mark Snyder, and Russell Torres This report is available in MIS Quarterly Executive: https://aisel.aisnet.org/misqe/vol20/iss1/8 Introduction Since 1980, the Society for Information Management (SIM) has surveyed its members to determine the issues of most concern to them and their organizations. Year-to-year comparisons are made to identify trends and track changes over time in the evolving management and usage of the information technologies entrusted to their care. This year’s SIM IT Trends Study marks the 40th anniversary of this undertaking. Over the years, the surveys have expanded to become one of the most comprehensive investigations of IT executives and the management and use of information technology (IT). This year’s study is of particular importance because of the onset of the Covid-19 pandemic in February 2020 and its effect on organizations and the economy. Founded in 1968, SIM is the oldest and largest not-for-profit professional organization in the U.S. for CIOs, senior IT executives, prominent academicians, advisors and other IT leaders. SIM is both a national organization and a network of local chapters. SIM members, who comprise a broad cross-section of IT leaders, meet regularly to share, learn and network. SIM succeeds because it provides value to its members, their organizations and their communities. SIM co-founded both MIS Quarterly and MIS Quarterly Executive. The SIM IT Trends Study’s questionnaire is updated annually to improve its quality and reflect changes in the IT field. However, questionnaire changes are kept to a minimum wherever possible so that year-to-year comparisons can be made and trends tracked. In April 2020, a personal link to this year’s questionnaire was emailed to each of SIM’s 3,802 members. Nine weeks later, after weekly reminders, bi-weekly e-newsletter articles and a special SIM chapter competition to encourage participation, 1,005 completed questionnaires were received, a response rate of 26.4% (compared to 24.6% in 2019). Consistent with the practice since 2013, these 1,005 responses were used to create two intersecting datasets: “The CIOs dataset” of the 345 respondents who identified themselves as the “CIO or highest-ranking IT executive,” and “the Unique Organizations dataset” of the 624 organizations represented by their CIO or highest-ranking IT executive responding (typically a direct report to the CIO in a large organization). This report is divided into six main sections: Top IT Management Issues and Concerns; Investments in Technology and Worrisome Technologies; Participating Organizations and their IT Practices, including spending, workforce, infrastructure and cybersecurity; IT Performance Measures; CIO Tenure, Reporting, Background and Activities; and Summary and Conclusions. 1. Top IT Management Issues and Concerns 1.1. The Top IT Management Issues of Organizations IT leaders specified their most important IT management issues or concerns by selecting up to five items from a list of 41. The top 10 issues selected by the most senior IT leader in each of the 624 unique organizations are presented in Table 1, along with the previous decade’s results. The top 10 IT management issues and concerns of organizations remained fairly stable in 2020, with one change in composition and only moderate changes in the percentage of organizations selecting. Security, Alignment and Data Analytics remained organizations’ most important IT management issues. However, presumably because of Covid-19, several changes were apparent this year. Not surprisingly, Business Continuity moved up dramatically from 16th in 2019 to 7th in 2020. Accompanying this was increased interest in Cost Reduction and Controls for both IT and the business. Despite Cloud Computing falling three places to 9th, the percentage of respondents selecting it as a top issue was only 6.9% lower than last year’s 19.7%. Similarly, Business Agility dropped from 7th to 10th but the percentage selecting it fell only 5.2%. Innovation fell from 9th in 2019 to 11th, likely reflecting a current focus on keeping business functions operational rather than expanding business capabilities. 1.2. IT Leadership’s Top IT Management Issues and Concerns IT leaders also identified up to five most personally important or worrisome IT management issues. These are presented in Table 2, alongside the results from the prior seven years. IT leaders remain personally concerned about Cybersecurity (1st) and IT Alignment with the Business (2nd). Consistent with 2020 changes in organizational concerns (Table 1), both Business Continuity and IT Cost Controls moved up significantly as most personally worrisome to 3rd and 9th, respectively. This change in IT leadership’s focus to maintaining business operations and conserving organizational resources is presumably in response to Covid-19-induced increases in economic uncertainty and recessionary conditions. Digital Transformation, first introduced in 2017, continued to rise in importance for IT leaders, moving up five places from 11th in 2019 to 6th in 2020. This reflects the need for integrated, flexible information systems capable of supporting a broad range of both anticipated and unanticipated functions, and is echoed in the increased concern that IT executives show in IT Agility and Flexibility. All this points to IT leaders doing more with less and using information technologies to better connect their business operations with suppliers, employees and customers. In Table 3, the Top-10 lists of IT management issues identified as most important to organizations and those selected as most personally important are presented together. Several interesting differences in organizational vs. personal priorities are evident in this comparison. First, Data Analytics is a top-10 item in both lists but fell five places as the most worrisome to IT leaders, while remaining the 3rd most important issue to organizations. This may indicate a belief among many IT leaders that much of the groundwork for establishing data analytics technologies and practices within their organizations has been performed and/or is well in hand. Unsurprisingly, IT leaders expressed concern about Cost Controls and Agility for both themselves and their organizations. Some of this concern is likely due to organizational stresses prompted by Covid-19. As in prior years, much of the disparity between these lists centers around items which, while not viewed as critical to the organization, are fundamental to the ability of IT to provide services to the business, such as Attracting and Retaining IT Talent, Maintaining IT Credibility and CIO Leadership. Technology Investments and Worrisome Technologies leaders were also asked to identify the technologies that represent their organization’s largest current or near-term IT investments, those that should receive more investment, and those of greatest personal concern (“i.e., they keep you up at night”). Participants selected up to five in each category from a list of 37. 1. Organizations’ Largest IT Investments The responses of IT leaders from 624 unique organizations on their organization’s largest current or near-term IT investment are listed in Table 4. The top 10 largest IT investments remained fairly consistent, but there were a few notable changes. First, and most significant, is the increased ranking of Collaboration Tools from 16th in 2019 to 8th in 2020, its highest ranking ever. This indicates the need of many organizations to enable off-premises work in response to Covid-19. Investments in Collaboration Technology, along with Networks & Telecommunications, displaced Legacy Applications (9th in 2019, 12th in 2020) and Application Integration (10th in 2019, 13th in 2020). Finally, after more than a decade as the most selected IT investment, Analytics, Business Intelligence and Related Technologies was unseated by Cloud Computing. 2.2. The Most Worrisome Technologies and Those that Should Get More Investment IT leaders selected up to five technologies from the same list of 37 investment options that they believe should get more funding, and an additional five they find most personally worrisome. The top 10 selections for 2019 and 2020 in each of these categories are presented in Table 5, along with the top 10 largest IT investments. The presence of an item in the top 10 of all three lists indicates that it is of high concern to IT leaders and that investments are currently being made in this area and should continue to be made. Four items stand out in particular: Cloud Computing, Analytics, Cybersecurity and Legacy Apps. However, several technology areas of great concern to IT leaders have not been receiving corresponding organizational investment. One is IT Staff Development, which has historically been of significant concern but underfunded. This trend continued in 2020, with investment in IT Staff Development ranked 3rd on the list of most worrisome issues, but a lowly 25th on the list of current investments and down five places to 11th among those that should receive more investment.