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Guest View: Intense business competition seals IT-Marketing partnerships

Sandra Ng | July 2, 2013
Addressing an increasingly complex IT-business environment

This indicates the intense hunger to deliver growth and the challenge in achieving it given that Asia had already experienced hyper/high growth over the last decade or so. The region has also begun to see one to three years of moderate/low growth.

Rise of emerging Asian enterprises

IDC identified four categories of IT decision-making structures in the region:

  • Transformational IT
  • Federated or Distributed IT
  • IT Centre of Excellence (or shared services)
  • Centralised IT

With Transformational IT structures, the CIO or the organisation (typically with the CEO as the executive sponsor) pushes to deliver business outcomes from the large majority of IT investments/projects. These CIOs/IT heads bring to live business ideas through the use of ICT.

Federated/Distributed IT is the most complex of all the structures and it typically includes a group CIO with country CIOs or a centralised IT department with IT resources also within the LoB/Business Unit.

The IT Centre of Excellence or shared services centre is one where a centre is dedicated to deliver IT resources. This is typically the most conservative of all IT structures and the charter is technical in nature.

Finally, with Centralised IT structures, decisions are made centrally. For emerging Asian enterprises, this means decisions are made in the region or in the headquarter country. This group presents the latest and newest set of growth opportunities for the ICT industry as these businesses look to IT automation and innovations to compete better against foreign multinational corporations and to capture new markets.

Highlights

On budget adjustments in 2013

When polled about their 2013 ICT budget/spend, 49 percent of respondents expect it to increase, 39 percent expect no change, 8 percent expect a decrease and the remaining 4 percent were unclear on actual spending direction. With greater reliance on technology, CIOs are finding it tough to support the level of business growth with the budget allocated (increase or otherwise).

The research also shows that the top three ICT challenges were limited budget, growing complexity and varied user needs as well as the lack of skill sets to effectively execute ICT. These challenges are a direct result of both increased business demands and the aftermath of consumerisation of IT where ease of use of "consumer IT" is leading to IT complexity.

On filling talent gaps

Talent gaps remain a global phenomenon with emerging markets facing the most severe challenges. These gaps will take time to address. According to the C-suite surveyed, their immediate-term measures to address the talent gap and resource shortage in their ICT enablement and support environment within their organisation include:

  • 67 percent deploying standard/ off-the-shelf solutions
  • 39 percent partnering with ICT vendors with strong support/training capabilities
  • 31 percent partnering with more niche/dedicated sector ICT vendors (industry)
  • 31 percent hiring business process resources with some ICT skills
  • 29 percent increasing outsourcing/managed services spending

Source: IDC Asia/Pacific C-suite Barometer, 2013

Sandra Ng is GVP, ICT Practice, IDC Asia/Pacific.

 

 

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