New research shows that IT is meeting business expectations, as CIOs use consumerisation of devices and apps to reposition IT and fuel innovation.
The Economist Intelligence Unit released a Europe, Middle East and Africa (EMEA) report, commissioned by HP, which demystified common perceptions surrounding business technology.
The survey comprised 25% IT staff, 50% business management and 75% other functions.
Ashton Steyn, CTO and alliance executive, HP enterprise services SA, says consumerisation of IT should be viewed as an opportunity rather than a threat.
“The market is becoming consumption-driven; however, there are challenges as to whether the environment should be highly standardised or customised. Security challenges need to be addressed around the consumerisation of IT, and the issue of ownership in terms of where the data sits in the corporate cloud.”
Steyn points to the growing trend of organisations putting up storefronts allowing users to download applications. “We are seeing a shift in terms of IT spending that's moving to a consumption-based environment, where we consume everything as a service.”
App stores change the perception of IT being an antiquated organisation. Steyn added that the consumerisation of IT requires a security mindset.
He points out that common accounts linked to multiple social networks accessed via a corporate network have become a prolific security concern. “As an end-user, you need to practice strong password policies, particularly if one account is exposed, leaving multiple applications vulnerable to threats.”
Clive Brindley, software country manager for HP SA, indicates it is critical for business to understand the end-user security implications of managing consumer devices and social networks.
IT project success
According to the Economist report, around 89% of South African executives believe technology investments have succeeded in delivering better efficiency. In addition, 78% of projects aimed at reducing costs were successful.
Brindley says the key message of the study shows that IT is delivering. However, he notes: “While the technology gap exists, the implications to business aren't as bad as was previously thought.”
Brindley says that, from a South African perspective, half of the projects were seen as successful if they provided agility. “IT is now expected to lower cost and conform with compliance and governance. IT is seen as the one area that will bring more innovation in the future, even more so than research and development.”
According to the report, knowledge gaps are growing within organisations; however, for most firms, this does not appear to be having a harmful effect on performance.
The report states that even though Generation Y may be more familiar with technology interfaces, they are not necessarily fully aware of how technology works behind the scenes and often struggle to understand the challenges of coping with legacy IT systems.
Brindley says the technology generation gap is overstated. Knowledge gaps exist and may be growing in organisations, but according to Economist research, it might not be harmful to the business.
On average, across EMEA, respondents rate the technology knowledge of leaders, such as CEOs and CFOs, as far ahead of line employees, even though the latter are more likely to be correlated with the so-called Generation Y.
“Generation Y is more familiar with interfaces, but less with good tech practices where they might not understand technology implications,” notes Brindley.
Innovation is key
Brindley says companies are looking to the CIO and IT to drive innovation. According to the survey, 45% of respondents believe IT will be the innovation engine. In SA specifically, 34% view IT as the innovation driver, with marketing at 27%.
He added: “In two to three years' time, the business core might not be relevant anymore. IT is essential for companies to continue to innovate and differentiate themselves.
“If an organisation is struggling to innovate, then it should outsource it. We are starting to see more large corporates gobbling up smaller innovative companies, as was seen with Facebook buying Instagram for $1 billion.”
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