January 2014 IBM CONFIDENTIAL PLEASE DO NOT DISTRIBUTE

January 2014 IBM CONFIDENTIAL – PLEASE DO NOT DISTRIBUTE Africa’s high hopes: Can IT leaders deliver on the strategic potential of emerging IT? In collaboration with the IBM Center for CIO Leadership © 2014 IBM Corporation

and the IBM Center for CIO Leadership Africa’s IT and business climate is changing rapidly – creating new opportunities and challenges Africa’s booming technological and consumer revolution is underway: $400 B The expected growth in Africa’s consumer-facing industries between now and 20201 650 M Mobile subscribers at the start of 2012, making the African mobile telephony market larger than EU or US 2 50 M African Facebook users as of March 20133 Technology will play a key role in driving this transformation… 2 Source: 1 African Development Bank Group, The African Consumer Market, 2012. 2 World Bank and African Development Bank (Af. DB) joint report, e. Transform Africa: The Transformational Use of Information and Communication Technologies in Africa, http: //web. worldbank. org/WBSITE/EXTERNAL/TOPICS/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/0, , content. MDK: 23262578~page. PK: 210058~pi. PK: 210062~ the. Site. PK: 282823, 00. html 3 Socialbakers. com, “Egypt Facebook Statistics”, http: //www. punkinafrica. co. za/2013/07/11/african-facebook-users-infographic/ © 2014 IBM Corporation

and the IBM Center for CIO Leadership Are Africa’s IT leaders ready? To find out, we surveyed 180 Africa-based IT decision makers Respondent distribution IT Spend Countries 18% 1 K+ employees 11% Egypt 17% South Africa 33% $50 K or more Number of Employees 44% 50 -249 employees 31% Kenya 31% Nigeria 67% $10 K to less than $50 K 3 11% Morocco Source: Setting the pace in Africa, an IBM global study involving 180 Africa-based IT leaders 38% 250 -999 employees © 2014 IBM Corporation

and the IBM Center for CIO Leadership Our research revealed a technology adoption gap, but Pacesetters are bridging it 4 Source: Setting the pace in Africa, an IBM global study involving 180 Africa-based IT leaders © 2014 IBM Corporation

and the IBM Center for CIO Leadership Pacesetters not only see the strategic value in emerging technologies – they’re acting on their aspirations High Pace of adoption = 10 respondents Low 5 Importance of emerging technologies High © 2014 IBM Corporation

and the IBM Center for CIO Leadership Pacesetters focus on three key areas to capitalize on emerging technologies The Pack Strategic business leadership IT skills Security 6 Pacesetters Surpass the Pack Meet with our CEO/senior execs regularly 40% Link IT investments to business outcomes 30% Use metrics and scorecards to assess IT risk 70% Create a risk aware culture 30% Secure resources for innovation 30% Develop IT skills to meet future business needs 80% Incorporate new security technology 30% Communicate and collaborate on security concerns 30% Provide professional security skills development 30% © 2014 IBM Corporation

and the IBM Center for CIO Leadership How can Africa-based IT leaders deliver on the strategic potential of emerging IT? Questions to consider. Assess strategic business leadership competencies What is your vision of how IT will drive the business forward? How do you link investments to business outcomes? How often do you meet with your peers in the business, including the CEO and senior executives? Which metrics and scorecards do you have in place? Implement emerging technologies and promote skills development Are you driving IT skills development to transform the organization, beyond meeting the basic needs of the business? How do you proactively develop IT skills to meet future business needs? Are you actively securing resources to pursue opportunities for technology-enabled business innovation? Tackle security maturity and preparedness How do you communicate and collaborate with your organization on security concerns? How do you deliver professional security skills development? What process is in place to incorporate new security technology? 7 © 2014 IBM Corporation

and the IBM Center for CIO Leadership © Copyright IBM Corporation 2014 IBM Corporation New Orchard Road Armonk, NY 10504 Produced in the United States of America January 2014 IBM, the IBM logo and ibm. com are trademarks of International Business Machines Corporation in the United States, other countries or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or TM), these symbols indicate U. S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. Other product, company or service names may be trademarks or service marks of others. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm. com/legal/copytrade. shtml CIP 03069 -USEN-00 8 © 2014 IBM Corporation