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Recently, I had the opportunity to engage with key business and IT decision-makers of large ASEAN (Association of Southeast Asian Nations) organizations through a webinar sponsored by Apptio. Throughout the session, it became apparent that many organizations are accelerating their digital transformation (DX) projects to ensure business continuity and achieve future resilience. Intelligent cost optimization (ICT) will play a fundamental role in this process.
Why? The COVID-19 pandemic has severely impacted businesses across countries and industries, driving CEOs to change their agenda, and, hence, organizational priorities:
- Critical infrastructure. Far from being just an IT play, IT infrastructure is gaining significant attention from CEOs. Building a digital IT infrastructure that supports resilient operations and pervasive experiences is a key priority today.
- Customers. The pandemic has brought about new customer requirements that need to be met, particularly due to the shift to digital-first. These include creating empathy with customers at scale, pivoting operations from throughput and efficiency to market-driven objectives, and engendering trust with customers.
- Capabilities. To succeed, organizations will need new capabilities such as becoming an intelligent (AI-driven) organization, creating software to deliver innovative services and personalized experiences at scale, and implementing new work models within the organization.
- Industry ecosystems. CEOs will need to define the new value in the digital economy, who their new partners will be, and what role they will play in these ecosystems.
The new CEO agenda will be the driving force for what IDC terms The Future Enterprise. This will bring about changes to business and IT strategic priorities, thereby impacting investments.
ICT accelerates resiliency and growth
IDC's COVID-19 Wave surveys, which have been conducted biweekly since March 2020, show that many organizations in Asia/Pacific have already shifted from the response to the adaptation phase—they are trying to figure out how to be resilient in this uncertain future. The most advanced, on the other hand, are in the acceleration phase; they are trying to accelerate their efforts to ensure future growth for the Next Normal.
Throughout this journey, organizations should ensure investments deliver the necessary business value and are aligned to the revised key priorities. Enterprise-wide investments will need to be closely scrutinized as part of this shift, leading to the need for greater transparency to overall spend, including ICT. Click here to watch the full webinar and learn more about this research.
Inevitably, investments in technology are going to be fundamental to accelerating digitalization and ensuring future resiliency. As part of the rebalancing of priorities, IDC urges CIOs to gain greater visibility into all enterprise-wide technology costs and investments, to elevate the value of IT, and deliver full spend transparency. However, this is becoming an arduous task, with increasing technology spending from outside of the IT group by the line of businesses (LoBs).
Internal partnerships drive ICT success
For organizations to thrive, CIOs will need to partner with CFOs, Chief Procurement Officers (CPOs) and other LoB stakeholders. Organizations will also need to ensure they have the right technologies that allow for enhanced enterprise-wide visibility into technology investments, whether these are managed by IT or other business units. Doing so will help organizations optimize cost and to align technology investments with business value.
In today's environment, it is fundamental to gain full visibility into all ICT investments, as well as to ensure that cost allocation is aligned to your organization's business goals. This will help you reduce waste, and drive efficiencies and business growth. Take control and focus on driving intelligent cost optimization to ensure your organization achieves future business resilience.
Learn more about cost optimization and Technology Business Management (TBM). TBM provides technology leaders with standards and validated best practices to communicate the cost, quality, and value of IT investments to their business partners.
Plan, analyze and optimize technology spend. Schedule a demo, today!