According to IDC, total IT spending in 2016 would be 2.3 trillion USD. This figure is 13% lower than the past year.
The main reasons for this are the slowdown in the smartphone market and the negative Chinese influence in the overall market.
But mature economies and organizations that have transformed us into a focus area that really interests us. 4% in the US and 1% in Western Europe.
The same research predicts that growth in cloud services will be around 16%, while growth in enterprise software will be around 7%.
These figures are among the key indicators that indicate that the direction of enterprise information technology spending around the globe is toward business process-oriented value-added applications rather than infrastructure hardware and services.
A significant number of companies (65-70%) whose main objective is “Digital Transformation” are already reporting that technology units are at the center of their main growth activities.
Digital Transformation Effect
This is not something driven by a single unit execution, it doesn’t happen by using trending technology tools and customer journey stories.
We are talking about an entire experience based on people and technology inside and outside of the whole organization
What I would like to draw attention to in this matter is related to the marketing of this concept.
Of course, commercial reflex is primarily about using the events that are on the agenda as sales and marketing material.
However neither the DevOps transition, nor your cloud transformation means you completed a successful Digital Transformation. Also upgrading your ERP or Database Management system don’t count as well.
Considering that there is not only a journey with technology, keeping the hammer-nail metaphor in mind for a significant portion of these marketing activities is recommended.
Researches shows us the successfully transformed organizations increase their profits around 23%-26% and revenues 8% on average, by reaching efficiency on their existing physical capacities.
The primary objective is to ensure that the organization, individual, production and technology roles work with an uninterrupted and seamless experience.
This clearly shows us that no business strategy can be done without an information strategy in today’s business conditions where the new currency is “speed”.
Key subjects like transforming information access processes from complex structures to simpler and more easily accessible structures, ensuring quick resolution of problems and accessing work from any environment are also among the CIO’s major homework assignments.
As such, they are in favor of strategic CIOs rather than functional CIOs.
Last but not least the proportion of organizations that describe as a cost center is around 18% and this is something CIOs would overcome as well.