A survey conducted by Acuity Media Africa among 40 of SA`s top companies has revealed the majority are complacent about their IT security, and don`t fully comprehend the business potential of m-commerce.
These were among the key findings of the survey into top IT companies` spending intentions between 1999 and 2004, commissioned by Reed Exhibitions SA on behalf of Computer Faire.
Speaking at a function in Rosebank, Acuity MD Arthur Goldstuck commented on the difficulties in getting SA`s top 100 companies to participate in the survey, saying most companies felt nervous about sharing this type of information.
The 40 corporate companies that did agree to participate in the survey include Standard Bank, Woolworths, RMB, Mondi, Illovo and ComAir. All participants had structured IT budgets, he said, and more than two-thirds of the IT departments in question control their own budgets.
Internet spending
Of the respondents, 100% plan to invest in Internet and intranet development, a very positive sign, according to Goldstuck. Less promising are the figures for investment in networking, at 95.5%, and software and services at 86.4%.
Grimmer still are the statistics for security, storage, telecommunications infrastructure, business equipment and e-commerce - all of which came in at 68.2%. The lack of financial commitment behind security bodes ill for South African businesses, he said.
"Based on this survey`s results and forecasts from similar strategic research we`re conducting, it is clear that corporate SA has no serious appreciation of the importance of security systems in IT."
The survey acknowledged that 2000 has been a tough trading year, mainly because many companies overspent on their IT budgets during 1998 and 1999, in an effort to equip their systems to handle the Y2K rollover.
Results also indicated that IT spend will increase in coming years. The overall IT budget of the companies involved will increase to between R300 million and R500 million by 2002, Goldstuck said, with the banking sector tipping towards the heavier end of the spending scale.
Several aspects of IT investment remain "depressingly" inadequately funded. The survey found that in addition to IT security, areas such as investing in staff training and mobile technologies are neglected.
M-commerce impact
This year, 60% of the survey`s sample will spend between R100 000 and R1 million on mobile technologies, while in 2001 only 5% will spend more than R1 million. "Our conclusion is that big companies don`t yet appreciate the impact mobile technology will make on their business."
A further negative finding is the unexpected low expenditure on supply chain management systems. Goldstuck believes this means corporate supply chain management systems will become outdated, and render South African companies unable to keep up with global competitors.
The survey also found that by 2001, 51% of respondents will spend between R1 million and R5 million on adopting new technology - a move that will be strongly driven by the need for e-commerce capability.
The increasing trend for respondent companies to outsource IT management and reduce dedicated staffing indicates that most South African IT strategies are conservative, preferring to minimise the risk of staff turnover, rather than capitalising on the opportunities at hand.
Goldstuck made a few forecasts for the future of IT in this country, saying the overemphasis currently placed on the importance of the Internet in a business` strategy will soon backlash, as companies wake up to the demands of other business aspects.
And, unless South African companies shake off the arrogance surrounding their information security, Goldstuck believes there will be several major security breaches that will inevitably result in public relations disasters, before companies take action.
Share
