Deloitte: Business performance is tightly linked to the CIOs role within companies

Business, Marketing, Studies

The voice of IT within businesses is notably getting louder among Romanian companies, as managers are increasingly aware of how significant the IT department is for the business structure, according to Deloitte’s latest IT-Business Balance Survey – “Finding common ground”.

This conclusion stands out from the high number of Romanian participants to this global survey, with 50% stating that the CIOs attend board management meetings (always or on a regular basis); also, 74% admit that the IT component of the firm is a significant component of the business strategy. Given such increased awareness, more than a third of Romanian participants confirm that their companies had no information security or privacy incidents over the past year (see chart 6.7).

Romania joined the project for the first time, with some 50 participants from the IT and business departments of companies representing major industries in the country (Financial Services, Technology, Media and Telecommunications, Consumer Business, Manufacturing, Energy & Resources).

According to the survey’s findings, security information roles and responsibilities are being defined more clearly, and specialized positions created within the company, in this respect. Only a few companies are still left without a CIO, compared to previous years. Also, the head of IT is an active participant to board and management meetings. 74% of people surveyed agree that the IT has a role within the overall business strategy. Also, 62% of people interviewed admit that their company has and Information Security Officer (CISO) or a similar function. (See charts 1.1 to 1.5 and 6.1).

An equal percentage of respondents (32%) agree that their companies either have an IT strategy incorporated within the Business strategy, or that the IT strategy is translated from the business one (see chart 1.6). However, companies are not completely aware of the benefits generated exclusively by the IT, as they continue to analyze them through a business and operational perspective (chart 2.3).

60% of respondents agree or strongly agree that the price / quality ratio for IT projects and services is very good (see chart 3.2). There is an obvious trend to focus in IT services quality, especially in view of recent economic development that has put a strong emphasis on costs and maximum performance. However, half of the respondents admit that they have no information as to what are the IT costs compared to total costs, nor total revenue (see charts 8.9 and 8.10).

For most companies, the demand management process is formalized and rigorously applied. Also, communication between the IT department and the business is improving (see charts 4.1; 4.3 – 4.5).

Almost half of the respondents admit that their company has no privacy officer or a similar function in place (see charts 6.1, 6.2, 6.3). However, 68% agree that information security and privacy are business critical or very important (chart 6.4). Also, companies are aware of the significance to have rigorous implementation and monitoring procedures. Based on Deloitte experience, there is increased interest in this area especially in big, multinational companies where this function is required by the group’s policy.

Companies value specific IT skills, the benefits of cost reduction and the efficiency of outsourced services. However, most companies are carefully monitoring such partnerships, usually through a business – IT combined team (see charts 5.1, 5.3).

The IT-Business Balance Survey is aimed at highlighting the key points on the topic of alignment between Business and IT, and is developed by a multidisciplinary team of specialists at Deloitte in cooperation with Deloitte Enterprise Risk Services and Deloitte Consulting.

The questions are based on academic research carried out by Deloitte in conjunction with the Vlerick Leuven Gent Management School. They cover topics at the heart of Business-IT alignment, and are related to IT governance, IT management, IT sourcing and IT security and privacy.

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