55% Indian Firms Have A Digital Roadmap: Study
Indian businesses are increasingly embracing digital technologies to stay afloat and are ready to face the challenges associated with it. A whopping 55 percent of organizations in India have a digital IT roadmap in place, says new KPMG- Dell study that was conducted with CIOs of 61 leading companies in India across various verticals to understand their views and approaches towards digital technologies.
The focus of the survey was to check organizations’ readiness towards facing digital disruption brought about by a set of disruptive technologies such as cloud, big data, IoT, mobility, and social amongst others. As per the survey, 32% of the organizations already have a formalized digital strategy in place in one or more business units. 30% of the organizations do not have a formal digital strategy but are working on one. 25 % of the organizations have an enterprise-wide digital strategy.
Akhilesh Tuteja, Partner- IT Advisory, KPMG said, “Digital is the new vehicle being driven by CIOs to ride into the future. Companies are quickly jumping on the bandwagon having acknowledged the fact that digital technologies will enable business models of future and will help transform enterprises.”
Top IT Spending Priorities
Top IT spending priorities for 2015 include Mobile Technologies (88%), IT Governance, Risk & Compliance (82%), Business Intelligence (80%), Analytics (80%) and Enterprise Applications (76%).
Annual IT Budget
For most organizations, the annual budget is more than 20 crore (27.5%) and about 23% of the organizations spend in the range of 1-10 crore on IT. Seventy percent of the organizations increased their annual IT budget by 10-20% in the last one year
Digital IT Spend, Role, and Responsibility 32% of the CIOs state that they spend 10-20% of their IT budget on digital technologies while 19% of the CIOs spend 20-30 %. As high as 19% of the CIOs spend more than 30% of their IT budget on digital technologies. Only 6% organizations have a full time digital strategy officer.
Majority of the organizations do not have anyone tagged to their digital strategy. 45% of the respondents think that digital is a good contributor to revenue/profitability/customer service, etc. 28% of the respondents think that it is the mainstream contributor
All’s not well
Despite the positive scenario, the biggest barriers for adoption of emerging technologies in organizations are data sovereignty and privacy (71%), level of Technology literacy (58.3%), regulatory compliance (54%), understanding technological shifts (50 %) and physical control (29%)
Cyber security is one the key threats which keep CIOs awake, 96% of the respondents recognize the risks posed by cyber-attacks. For 92% of the CIOs, the focus has shifted from catalyzing adoption to helping ensure the appropriate governance throughout the adoption lifecycle.
Other key takeaways from the survey include:
- Digital disruption has started to seep into the organization’s key agenda in a big way, aligning itself to the existing roadmap. The fusion of emerging technologies has started to kick off as the CIO sets aside a budget for digital technologies
- Social media has become an important tool for organizations to engage with their customers. Use of social media has facilitated organizations to increase brand awareness and monitor competitor activity. It has greatly reduced the time taken by the customer to access information and choose from a plethora of options to the extent that customers is willing to trade off their privacy for convenience
- The focus of organizations on analytics has gained significant importance as it has become the key driver for all kinds of decision-making from procurement of raw material and manufacturing to marketing/branding the product and providing after sales service
- Internet of Things is catching on fast and organizations are readily accepting the change. Despite having security concerns, organizations are ready to undergo this transformation
- With digitalization, there is an increase in the number of cyber-attacks encountered by organizations and this area has become one of the top items in the top priority list
- There is an increase in the uptake of open technologies that are used by companies as they provide competitive advantage. Companies are able to connect with customers on a real-time basis in addition to bringing down data storage costs. However, the flip side is that these technologies increase the risk exposure. Security of data has become a key concern as well.
R. Sudharsan, Commercial Marketing Head, Dell India said, “Technologies such as Security, Mobility, Cloud, Analytics and the Internet of Things are no longer disparate approaches. These allied forces are disrupting businesses, choice of technology and role of CIO’s/ITDM’s.
The survey helps us understand the concerted focus made by organizations in enabling a Future Ready Enterprise, embracing digital and emerging technologies as means to accelerate business transformation, he said.
- CXOs Still Wary Of Cloud Data Security: Study
- India’s Digital Payments Will Touch USD 1-Tn By 2022: Report
- AI, Cloud, IoT To Have Huge Impact On Semicon Revenue: KPMG
- PNB Scam: Some Tech Lessons For Indian Banks
- Weekly Rewind: Top 10 Stories On CXOToday (Feb 12-17)
- Digital Engineering Spend To Grow 124 pc By 2022
- Embracing Technology For HR Innovation
- IBM Steps Up Its Skills Development Efforts In India
- Why Financial Sector CIOs Should Get On Top Of Machine Learning
- India's Digital Consumer Spending Still Nascent: Google-BCG