p. fehér - z. szabó - hope? analysing enterprise it practices in hungary, 2009-2013
DESCRIPTION
Presentation on the 10th International Symposium on Business Information Systems, Győr, Hungary IT department of the Hungarian enterprises had to deal with several challenges in the last 5 years of the economic crisis: inevitable cost reduction, crisis solutions, limited IT development opportunities. The Corvinus University of Budapest conducts a research since 2009 among IT conscious enterprises, analysing the change of IT budgets, applied crisis solutions, development areas, perceived role of IT, IT strategy, IT infrastructure and service management practice. Beside using survey results, the practice of selected enterprises was explored via case-study methodology, therefore research results are based on both quantitative and qualitative methods. Research results indicate a patience waiting behaviour of the enterprise, and showing a hopeful attitude. In the case of IT budgets, close to 40% of enterprises applied no change comparing to the last year’s budget, and additional 50% changed it only slightly, even increasing or decreasing the volume. As average, the size of IT budget is practically did not change. Comparing to the last 4 years, this is a first year, where no average decrease in IT budgets were found, although there is no sign of growth. In this situation there is no need for exceptional crisis measures: decreasing salaries of IT employees or layoffs are far not so common as before. The goal of most widespread measures is to enhance internal effectiveness, including better business case development, more conscious financial analysis of IT projects, renegotiating supplier contracts and rationalising IT services. The planning period of IT strategies did not change over the researched years: it is still around 3 years, while ~80% of the enterprises have formal IT strategy. The most targeted development area is still related to IT operations, enhancing operational practice, among two-thirds of the enterprises. Mobility developments becase second and 45% of enterprises indicated plans on this area. Meanwhile enterprises plans fewer projects in other areas. Cloud-related developments dropped by almost 50% comparing to last year, and IT service management plans are also decreased to 26%TRANSCRIPT
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
HOPE?ANALYSING ENTERPRISE IT
PRACTICES IN HUNGARY
2 0 0 9 - 2 0 1 3
Dr. Péter Fehér
Dr. Zoltán Szabó
Partners:
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
The economic crisis is still not over –
at least not in Hungary
Source:
Fehér, P (2009) The Challenge of IT in Downturn,
OGIK Conference, Győr
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
IT Budget
Partners:
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
2009 2010 2011 2012 2013
3 Years Delay in the Stabilization of the IT Budgets
-8,1%
-1,1%
1%0,5%
-0,50%
-11,3%
-4%
-1,8%-2,9%
0,01%
International Hungary
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
3% 4%
24%
39%
26%
2% 3%
0%
10%
20%
30%
40%
50%
60%
Decrease(> 20%)
Decrease(10-19%)
Decrease(1-9%)
No change Increase(1-9%)
Increase(10-19%)
Increase(> 20%)
+0.01%
30% 31%
2 0 1 3
IT budgets did not change radically(2012-2013)
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
The change of IT budgets depends on the role of
corporate IT
2,263,02
3,70 3,97
(5)
(5)
(5)(5)
IT is important incompetitive
differentiation
IT is critical part ofbusiness products or
services
IT is important incompetitive
differentiation
IT is critical part ofbusiness products or
services
Decreasing IT budget Increasing IT budget
2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Share of IT operations increased in
IT budgets
56% 63%
37% 44%
IT operations 2012 IT operations 2013 IT Developments 2013 IT developments 2012
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Reporting lines
Partners:
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
IT is loosing its strategic importanceReporting lines of the CIO (2010-2013)
13%14%
21%
26%
56%55%
53%
40%
19%
20%
16%
23%
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013COO CEO CFO
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
5,3%
8,1%
2,1%
CEO COO CFO
IT budget as % of revenue
1,9%
1,5%
-3,3%
CEO COO CFO
Change of IT Budget
2,9 2,8
3,6
CEO COO CFO
IT Strategic planning (years)
IT departments under CFO supervision should suffer
strong cost control
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
CFO driven IT practice is cost controlled, and neglecting
innovation
3,96
3,633,54
3,43
3,24
2,84
3,503,60
3,46
3,15 3,15 3,19
3,60
2,93
3,95
1,95
2,31
2,81
Role of IT is toincrease business
efficiency
IT is critical fordelivering business
innovations
Role of IT is toprovide IT services in
lowest cost
IT is the main initiatorof businessinnovations
IT is important incompetitive
differentiation
Role of IT is todecrease business
costs
CEO COO CFO
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
15,38%
8%
1,96%
0%
2010 2011 2012 2013
IT cannot became a commodity for Hungarian
organizatons
Share of organizations using mainly outsourced IT services
No data
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
4,62%
2%
9,15%
14%
2010 2011 2012 2013
The popularity of corporate IT service centers
increased
Share of organizations using mainlycorporate IT service centers
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Role of IT
Partners:
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
The tight relationship between Business and IT was only
temporary?
2,6
2,8
3
3,2
3,4
3,6
3,8
4
4,2
2009 2010 2011 2012 2013
Business understands therole of IT
Efficient partnershipbetween Business and IT
Basic IT services areprovided in the requiredquality
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Business side perceives better cooperation
between Business and IT
3,31 3,2
4,08 4,08
Business understands the roleof IT
Efficient partnershipbetween Business and IT
IT Business
+23% +28%
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Pressure and opportunity
Partners:
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
There is a change in some crisis-measures
7%
18%
23%
24%
34%
44%
45%
51%
52%
0% 10% 20% 30% 40% 50% 60% 70%
Salary reduction
Non-planned layoff
Limited development contracts
Limited consulting contracts
Postpone procurements
Stop hiring new employees
Service rationalisation
Renegotiate supplier contracts
Business feasibility plan based projects
2013 2012 2011 2010 2009
20
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Planning for further measures decreased
since last year
7%
8%
9%
16%
22%
24%
25%
26%
0% 10% 20% 30% 40% 50% 60% 70%
Salary reduction
Stop hiring new employees
Non-planned layoff
Postpone procurements
Business feasibility based projects
Limited consulting contracts
Limited development contracts
Renegotiate supplier contracts
2013 2012 2011 2010 2009
21
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
There is a general decrease in further
development plans
11%
19%
23%
23%
25%
26%
27%
38%
45%
66%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Identity management*
Open source
Project management development
Cloud computing*
IT risk management
ITSM development
Change in operation models
Process development
Mobility*
Operations optimalisazion
2013 2012 2011 2010 2009 Planned projects is 2013*New since 2012
22
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Plans for cloud computing implementation dropped
drastically over a year
41%
23%
2012 2013
-44.1%
Share of companies planningcloud computing projects in 2013
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
IT infrastructure and management
Partners:
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Main applications
43%
43%
47%
53%
67%
77%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Business Intelligence
E-business
Workflow
Groupware
Document Management
ERP
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Application areas
32%
42%
43%
48%
50%
52%
53%
58%
60%
62%
63%
67%
72%
80%
85%
0% 20% 40% 60% 80% 100%
Organisational Development
Quality Management
Technology Development
Marketing
Production/Manufacturing
Controlling System
Logistics
Procurement
Sales
Inventory Management
HRM
Payroll
Executive Information Systems
Accounting
Finance
2013 2010
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
59%57%
46%
34%38%
2009 2010 2011 2012 2013
Decreasing importance of process innovation in IT(BPM, BPR, Lean IT)
Ratio of organizations initiatingprocess management projects
focusing on the IT function
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
46%49%
51%
30%
26%
2009 2010 2011 2012 2013
Decreasing popularity of ITSM projects (ITIL, MOF)
Ratio of organizations initiating IT service management projetst
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
IT strategy
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
IT Strategy Planning
76% 74%78%
82% 83%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013
Tim
efr
am
e: 2,9
years
Tim
efr
am
e: 2
,7 y
ears
Tim
efr
am
e: 2
,9 y
ears
Tim
efr
am
e: 2,9
years
Tim
efr
am
e: 3
,1 y
ears
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Major issues in IT strategy
52%
49%
57%
50%
65%
90%
55%
53%
53%
44%
48%
68%
50%
46%
54%
42%
60%
74%
0% 20% 40% 60% 80% 100%
Compliance
Risk Management
IT Controlling
Standards
Procurement, Supplier policy
Application portfolio
2013 2012 2011
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Ideas
Relationship between corporate and IT
strategy
Business
StrategyIT Strategy
ITBusiness
Strategy
Business
StrategyIT Strategy
40%
25%
17%
Business
StrategyIT Strategy 18%
1-49 FTE: 18%
50-249 FTE: 24%
250-1499 FTE: 30%
1500+ FTE: 28%
Owners
State: 21%
Domestic: 31%
International: 48%
Respondents
Top Manager: 56%
Manager: 33%
Other: 11%
I T S MResearch
2 0 1 3
Corvinus University of Budapest
Institute of Information Technology
More Information:
http://informatika.uni-corvinus.hu
Conclusions
Still working in crisis-mode
Share of unintentional
measures decreasedover a year
Developments arestill suspended
Decreased interest for ITSM
developments