Enterprise IT trends 2016 : the growing startup gene
New Delhi, 30 April, 2016
- 50% of the respondents have faith in getting work done from start-up economies. The other half is still sceptical
- 81% of the respondents think IoT is the most upcoming technology in the next few years. Other technologies in line are High Speed data transfer, wearable technologies, 3D printing (in that order)
- Cyber threat tops the list of the top issue that gives a CIO sleepless nights
- Almost half the respondents mention that their company has an in-house analytics function. While some believe in hiring specialized talent for the same, many have an inclination towards training existing workforce on of-the-shelf analytics tools
The growth of digitisation in the corporate world is tremendous, with organisations heavily relying on upcoming technologies to reduce their operating costs. The annual EY-CIO Klub’s Enterprise IT trends and investment survey titled ‘The startup gene: a way forward’, elaborates the thought process in the CIO’s minds by showcasing some striking analysis. The report, which revolves around the idea of the startup gene, states that the CIOs of the country can benefit a lot from adapting to the startup methodology of carrying out work.
The survey, which was aimed to capture key IT priorities and initiatives taken by organizations across various sectors, provided some meaningful insights. From the 294 CIOs that responded to EY’s survey, almost 50% have shown faith in startups to get their work done. This was supplemented by the fact that 30% of the respondents were aligned towards the Do It For Me (DIFM) approach, wherein the company would want to bring in external expertise to perform certain specific tasks, rather than doing it inhouse.
Employing startups ensures that work is done in an agile and innovative manner. This saves cost, helps adopt the latest in technology and becomes a disruptive force in the industry. However the report claims that to be more effective CIOs, they should inculcate these values in their own firms to be a reckoning factor in their field. The only way to adapt to change is to take the risk of adopting it. By implementing start-up practices, CIOs can ensure that their projects are driven to closure quickly, OPEX is managed and the product is effectively managed by the company after using a combinative approach.
“CIOs are never questioned for bringing in an established ERP, but they are always challenged or asked to justify buying products from small companies or working with small service players — the startups. However, for the first time in our careers, we now see CIOs being questioned by their CEOs and business leaders for NOT working closely with startups”, says Nitin Bhatt, Practice Leader, EY.
Certain aspects of the IT roadmap are becoming clearer. For example, 81% of the respondents state that the most promising futuristic technology that will gain momentum in the next five years would be Internet-of-Things (IoT). While IoT is still considered to be a technology of the future, the market is already swarming with companies offering products fuelled by the technology. Technology, however, comes with its own associated risks. Cyber security continues to be important and remains a board-level agenda this year as well. More than one-fourth of the respondents stated that cyber threat is the “one” issue that gives CIOs sleepless nights.
The 2015 survey showed that organizations had crossed the SMAC 2.0 barrier and were rapidly moving toward SMAC 3.0 (where digital triumphs with innovation); however, the priorities have shifted since the last year. The survey reveals that companies have increased focus on mobility as compared to social, resulting in a change of priority from S-M-A-C to M-A-C-S. Companies are embracing new technologies at a faster pace than expected. Trends show that companies are ready to spend up to 30% of their total IT budget on SMAC technologies. While each of these technologies is a giant in itself, CIOs in India are prioritizing these implementations in their organizations based on various factors.
About the survey
EY and CIOKLUB’s Enterprise IT Trends and Investment Survey gauges current investment patterns, IT priorities and upcoming investment plans of organizations. This survey was conducted through a secure online tool with a specific URL that was mailed to designated members of the CIOKLUB, along with instructions for completing the survey. Key themes from the discussions have been considered for the report. EY downloaded the results of the survey to conduct an analysis and used cross tabs to identify the patterns of various IT domains across specific industries, and the size and type of industry. Responses of 294 out of 318 respondents, who completed the survey, were considered as complete and used for the analysis. Partial responses have been ignored for the purpose of this analysis.
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