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Analyst view: Speeding ahead of demand

Simon Piff | March 28, 2013
This is the year IT moves from a business cost to business contribution/value centre, and the regional CIO community is experiencing that urgency.

Simon Piff
Photo: Simon Piff

At the Asian Financial Services Congress 2013 in February this year, I spoke about the need for speed; the need for Asian enterprises to stay ahead of demand. It was a topic that was close to the hearts of the 650 senior executives at the two-day event.

The experience of a utility CIO I spoke to is a good illustration of that point. He went from tens of thousands of meter reads a month to hundreds of thousands a day. Storage requirements tripled in a single year, while security costs doubled in the last two years. By the end of 2012, IT systems based on data-in-memory, complex event processing, complex analytics become the norm for his organisation.

Over in the financial services industry, the Head of business transformation & strategy at CIMB Group said: "IT is no longer good enough to deliver projects on-time, on-budget and on-quality. IT must be used by business to generate value. IT staff bonus is tied to business value contribution."

He explained the key focus areas in support of CIMB's regional ambitions:
1 Platform + Data Centre Consolidation + 1 View

First, the bank is ensuring that the building blocks are in place by having regional core banking systems for Malaysia, Singapore and Thailand. The platform serves as a pillar to achieving the bank's business vision in ASEAN. It is also part of continued efforts in brand harmonisation.

Second, it is consolidating its data centre for cost efficiencies and enhanced scalability. That would achieve greater robustness and scalability while seeking avenues to drive down costs.

Third, it is aiming for a single view that would enhance customer experience. This would help the financial institution focus on customer centricity and enhance customer experience. It would provide a single view of the bank to customers across all financial products and services, across all channels.

IDC believes 2013 is the last call for CIO transformation; that this is the year IT moves from a business cost to business contribution/value centre, and the regional CIO community is experiencing that urgency.

Enterprises can support business growth
Asian businesses can expect the following by end 2013, in view of IDC's four pillars of research:

Cloud computing will see a growth rate of more than 50 percent over 2012 rates. The 'next big thing' will be hosted private cloud services. Many CIOs will be considering the platform/ ecosystem-led cloud, while SaaS (Software-as-a-Service) + PaaS (Platform-as-a-Service) will be the new battlefield.

As for mobility, there will be a 30 percent growth in enterprise mobility over 2012 numbers; three-quarters of spending will be in smartphones, tablets and WiFi infrastructure; most of the non-hardware spend will be in services; and mobility practice will be the new battlefield between IT and Telcos.


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