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Balancing IT efficiency and effectiveness maximise customer satisfaction, minimise costs

Chris Morris, Associate Vice President with IDC's Asia/Pacific ICT Services Group | April 9, 2014
Asian CIOs understand that successful business transformation demands an effective IT department that operates within a framework of processes, by a group of people that can deliver business-directed technology solutions.

Asian CIOs understand that successful business transformation demands an effective IT department that operates within a framework of processes, by a group of people that can deliver business-directed technology solutions.

With rising competition and pressures on the bottom line, regional CIOs are feeling the heat from the business to innovate more quickly as a way of boosting revenue and profit.

This is adding pressure from new directions: LOB managers want a say in how and what IT is delivering to their users. And to meet the LOB's requirements, it is inevitable for CIOs to consider the use of external resources.

In 2014 IDC expects  more CIOs to source and deliver from the cloud. That decision means adapting to new, often disruptive technologies and overcoming ever-increasing complexities, which push CIOs  to find IT cost efficiencies and address mounting security threats.

Commonly, CIOs and IT departments are measured on their efficiency, i.e. how cheaply they can deliver a set of services. On the other hand, driven by metrics such as customer retention, average spend per transaction or the time a customer spends on a website store, LOB managers are more interested in how effective the business services delivered by IT are in meeting these goals.

Assessing IT on this basis demands that CIOs start to look at service delivery in a different light. Unfortunately, traditional IT management is not always maturing in the way that is needed, and remains focused on IT efficiency.

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Compounding the issue is the rapid acceptance of the four pillars of the 3rd Platform in the enterprise - Cloud, Big Data, Mobility, and Social Media. The four key technologies are quickly changing how control, management, and security of the IT environment are delivered.

Intrinsic to the use of these technologies is the need to adopt new delivery models that are flexible, scalable, fast to deploy and cost effective. Cloud models fulfil the underlying need but many CIOs are ill-prepared for the new challenges that come with cloud.

Any audit of an enterprise's application portfolio will show a range of efficient and effective business services which they support. Some will be so vital to the enterprise that delivery efficiency is less important, and they will be delivered from a platform that meets their key demands of, say, architectural compliance, data location and performance.

Similarly, there will be some which are truly commodity applications in that enterprise which can be sourced and delivered in a way that is very efficient. In 2014, IDC believes Asian businesses will leverage the cloud to fulfil this business need as it addresses immediate business requirements and replace aging infrastructure and applications..

 

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