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Nordic IT Organisation 2014 Product Image

Nordic IT Organisation 2014

  • ID: 2775099
  • February 2014
  • Region: Europe
  • 75 Pages
  • Waagstein Research AB

Nordic IT Organisation 2014 - Theories, Practices and Results is written based on mainly the needs and requirements of the IT management of large Nordic companies. The target group of the report is primarily: CIO/IT managers, CFOs, Controllers, IT strategists, Consultants and CEOs. The report will however also be interesting for vendors of IT products and services in order to better understand their customers.

Nordic IT Organisation 2014 - Theories, Practices and Results is designed to map out how Nordic companies organise their IT function and align business with IT.

This is done by:

- Showing Nordic companies’ IT priorities.
- Reporting on the success in reaching various IT objectives.
- Presenting the IT governance & management cost levels.
- Presenting information on the IT funding models followed by Nordic companies and their satisfaction with these.
- Displaying the level of IT budget centralisation.
- Reporting on the strategic role of the CIO in Nordic companies.
- Showing the decision rights allocation models followed by the companies and their satisfaction with these.
- Reporting on the business-IT alignment measures taken by Nordic companies and how important they are viewed.
- Displaying the organisational hierarchy of IT organisations in Nordic companies.
- Showing the effects of how IT is organised on the success in reaching various IT objectives.

1. Summary

Introduction

Purpose

Method

Definitions

2. Key IT governance choices

Definition of IT governance

Basic IT governance models

IT funding models

IT decision rights models

Strategic role of CIO

3. Strategies for aligning IT and business

Difficulties in achieving strong alignment of IT and business

General strategies for improving IT and business alignment

4. IT priorities

Importance of IT objectives

Success in reaching IT objectives

5. IT governance & management costs

IT governance and management cost levels

Effect of IT governance & management cost level on reaching IT objectives

6. IT funding models followed

IT funding models followed

Effect of IT funding model followed on reaching IT objectives

7. Satisfaction with IT funding models

Satisfaction with contributions of IT funding models

Difference in satisfaction with contributions according to IT funding model followed

8. Level of IT budget centralisation

9. Strategic role of CIO

Frequency of CIO being member of company executive team

Perception of value making CIO member of executive team

10. Decision rights allocation models followed

Decision rights on IT strategy and direction – Allocation models followed

Effect of decision rights allocation model followed on success in reaching IT objectives

11. Satisfaction with decision rights allocation models

Satisfaction with contributions of decision rights allocation models

Difference in satisfaction with contributions according to decision rights allocation model followed

12. Business-IT alignment measures

Importance of measures for aligning IT with business

Implementation of IT-business alignment measures

Effect of IT-business alignment measures on reaching IT objectives

13. Organisational hierarchy

Average number of IT employees reporting to each manager

Types of IT organisation hierarchy structures

Effect of degree of hierarchy on reaching IT objectives

Table of Figures

Importance of IT objectives: Nordics (means 1-5)
Importance of IT objectives – Supplier- vs. Business-centric objectives: Nordics (means 1-5)
Importance of IT objectives: Industries (means 1-5)
Share of companies successful in reaching IT objectives: Nordics
Share of companies successful in reaching IT objectives – Supplier- vs. Business-centric objectives: Nordics (means 1-5)
Share of companies successful in reaching IT objectives: Industries
IT governance & management costs as a share of total IT costs 2013: Nordics & Industries
Effect of IT governance & management cost level on reaching IT objectives: Nordics
Effect of IT governance & management cost level on reaching IT objectives – Supplier vs. Business-centric objectives: Nordics
IT funding models followed: Nordics
IT funding models followed: Industries
Success in reaching IT objectives for companies where business units pay for central IT functions through fixed budget allocations (% successful of companies): Nordics
Success in reaching IT objectives for companies where central IT functions are funded as a cost centre from a central company budget (% successful of companies): Nordics
Success in reaching IT objectives for companies where business units pay for central IT functions based on use (% successful of companies): Nordics
Success in reaching IT objectives for companies where business units fund & manage their own IT functions (% successful of companies): Nordics
Share of companies successful in reaching IT objectives (supplier vs. business-centric) according to IT funding model followed: Nordics
Share of companies satisfied with IT funding model followed: Nordics
Share of companies satisfied with IT funding model followed: Industries
Share of companies satisfied with IT funding model followed as a whole: Nordics
Share of companies satisfied with contribution of IT funding model followed to keep IT costs down: Nordics
Share of companies satisfied with contribution of IT funding model followed to increased business value: Nordics
Share of companies satisfied with contribution of IT funding model followed to increased technical quality: Nordics
Share of companies satisfied with contribution of IT funding model followed to increased IT service quality: Nordics
IT budget centralisation levels: Nordics (% of companies)
Degree of IT budget centralisation (% total IT costs): Nordics
Degree of IT budget centralisation (% total IT costs) 2013 & 2006: Nordics & Industries
IT budget centralisation levels: Industries (% of total IT costs)
Share of companies where CIO is member of executive team: Nordics & Industries
Share of companies considering it to be beneficial if CIO became member of executive team: Nordics & Industries
Decision rights on IT strategy and direction – Allocation models followed: Nordics
Decision rights on IT strategy and direction – Allocation models followed: Industries
Share of companies successful in reaching IT objectives according to decision rights allocation model followed: Nordics
Share of companies satisfied with decision rights allocation model followed: Nordics
Share of companies satisfied with decision rights allocation model followed: Industries
Share of companies satisfied with decision right allocation model followed as a whole according to model used: Nordics
Share of companies satisfied with the contribution of the decision rights allocation model followed to keep the IT costs down according to model used: Nordics
Share of companies satisfied with the contribution of the decision rights allocation model followed to increase the business value according to model used: Nordics
Share of companies satisfied with the contribution of the decision rights allocation model followed to increase the technical quality according to model used: Nordics
Share of companies satisfied with the contribution of the decision rights allocation model followed to increase the service quality according to model used: Nordics
Importance of measures for aligning IT with business: Nordics (means 1-5)
Importance of measures for aligning IT with business: Industries (means 1-5)
Share of companies where IT-business alignment measures have been implemented to a high extent: Nordics
Share of companies successful in aligning business with IT: Industries
Effect of measures for aligning IT with business on average success in reaching IT objectives (1-5): Nordics (% successful)
Average number of IT employees reporting to each manager: Nordics & Industries
Allocation of companies according to type of IT organisation hierarchy structure: Nordics & Industries
Allocation of companies according to type of IT organisation hierarchy structure: Nordics
Effect of degree of hierarchy on reaching IT objectives: Nordics (% satisfied):

This report is based on data collected from a telephone survey of 45 large Nordic companies. The respondents are all leading decision makers with profound knowledge of their respective IT organisations and governance strategies. In most of the cases these are IT manages or CIOs but in some cases other persons such as CFOs and CEOs were also interviewed. The respondents were selected randomly from a comprehensive database of survey targets. The survey was carried out in the first quarter of 2014. Only companies with at least 300 employees have been interviewed.

The results from the survey is presented and analysed broken down by industries: trade, services and manufacturing industry. The term ‘Nordics’ in the report refer to all surveyed companies.

The results from the 2014 survey are in this report compared with data from two reports published in 2006 and 2007.

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