While more than half of Irish CIOs (57%) consider innovation an important priority, they receive little or no funding for this within their IT function. 43% of Irish respondents to the annual Deloitte CIO (chief information officer) survey indicated that less than 1% of IT budgets were ring-fenced for innovation. This compares to their global peers where 19% of all respondents to the survey indicated that less than 1% of their budgets aligned to innovation-related activities. Similarly, while 30% of CIOs internationally consider IT innovation very important to the IT function, only 19% of Irish CIOs feel the same.
Finfacts: Replacing the Double Irish with Knowledge Development / Patent Box - Part 2 - - Ireland's poor innovation performance
Harry Goddard, head of Deloitte Ireland’s technology consulting practice, says: “After the prolonged economic downturn here in Ireland, organisations are now looking to drive sustainable growth. We know from research amongst Irish CFOs that they view technology as having a key role in driving this growth. Therefore, the ongoing lack of innovation budget is surprising given positive current market conditions and an acknowledgement that technology is essential for organisations to develop and deliver new products and services to remain competitive. This is perhaps even more surprising given Ireland’s reputation as an innovation engine for technology.”
Deloitte says that despite some challenges, there have been some improvements in business relationships as findings reveal Irish CIOs are becoming more effective business partners (4 percentage point increase on last year, with 44% rating themselves as strong and effective). That said, we are now somewhat behind global counterparts in this area - this figure has risen 10% to 49% in this year’s survey results.
IT priorities. Supporting new business needs (60%) and driving digital strategy (45%) are top of the priority list amongst Irish CIOs for the next 12-18 months. Reducing IT cost as a priority has dropped 29 percentage points from 2013 (in 2014, 28% consider it a priority vs. 57% in 2013).
Business partnering. CIOs are becoming more effective business partners with 44% of Irish CIOs rating themselves “strong and effective” in that regard – a marginal increase on last year. However, while 80% consider their relationship with the CEO a “very important” one, just under half of Irish CIOs believe this relationship is currently “very good”. Similar disparities exist in the CFO and COO relationships.
Innovation. 57% of Irish CIOs believe that innovation is considered an important a priority but receives little funding within the IT functions. In fact, almost half of Irish CIOs put less than 1% of their budgets aside for that purpose. However, the number one barrier to riskier IT investments is the business leadership’s attitude to risk; budget is second.
Over 900 CIOs across 49 countries, including Ireland, provided insight into the perceptions, priorities, opportunities and challenges of CIOs around the world.
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