CIOs are facing the challenge of reducing actual IT spending as well as ensuring the realization of expected business value. While budgets are under pressure, IT is expected to enable new business and accelerate innovation by delivering increasing value. 73 CIOs and IT manager provided their perspective in the 2012 edition of the CIO survey “TCO & IT Economics“.
The survey has been conducted in a collaborative effort between the German speaking SAP user group (DSAG), the CIO work group “TCO & IT Economics” and SAP. Key objective was to get the CIO perspective on TCO & IT Economics and analyze the potential and relevance of selected best practices to reduce TCO and increase IT enabled business value. The survey is structured into 3 sections: CIO Context, TCO, IT Value.
This blog is the second in a series to provide insights about IT Economics and discuss survey results.
Part 2 is dedicated on the expected economic impact, CIOs rated on selected technology innovation. Part 1 is focused on CIO priorities for 2012 and 2013 (link to blog).
Question: To which extent do you see potential to reduce TCO and/or increase IT enabled business value in 2012/13 with the following technology innovation?
- Cloud Computing/ Software as a Service
- Big Data & In Memory Computing
- Mobile Platforms & Solutions
- Data Base & Technology
- Social Communication & Collaboration Tools
Survey Result: Highest economic impact is expected with innovative solutions on Mobility and Social Communication & Collaboration Tools.
My Conclusion: I was somewhat surprised with rather low ratings in some cases (i.e. on In Memory Computing) as I am convinced that each of these technologies can have significant positive economic impact. There is probably a couple of reasons and the average number might not be the best summary of the results. Here is my reading on two of the extremes:
- Mobile Platforms & Solutions: It is a topic no company can ignore, enabling new business models, rising complexity (i.e. # devices, # technologies, # apps, backend integration) – with a need for an overarching strategy and platform to controll cost and enable full business value.
- Big Data & In Memory Computing: The average of 2,4 need to be put into perspective against the 45% that say there is a fair potential >= 3; Although there is a fast growing number of use cases with high ROI there might be more upfront investment needed and decsions take more time. On the other hand, there might be significant potential undiscovered by companies and opportunities yet to be identified. My advice: Evaluate the technology for your business, starting with a HANA Value Discovery Workshop.
What is the perspective on IT Economics in your business? Take part in the survey and find out, free of charge. It is now available globally, here: IT Economics Survey @ SAP Value Management Center
- Read blog part 1 & 3: Blog Part 1 on CIO priorities for 2012 and 2013; Blog Part 3 on Top 10 Measures for TCO Reduction
- Download the complete survey report here: https://scn.sap.com/docs/DOC-33753.
- Follow me on Twitter @SAPSpotlight or connect to LinkedIn.
Your View matters: What is your perspective on this question? I would like to know what are your thoughts.