More CIOs To Get SMAC-Ready In 2015: EY-CIOKLUB

by CXOtoday News Desk    Apr 27, 2015


Emerging technologies, such as Social, Media, Analytics and Cloud (SMAC) and other digital concepts will attract more than 25% of the IT budget this year, says a recent EY-CIOKLUB Survey. The study, titled “SMAC 3.0: Digital is Here,” which was aimed to capture key IT priorities and insights from 267 CIOs, highlights that the direction of the respondents’ current and future plans aligns with the ‘Digital India’ story.

Digital all the way

Devendra Parulekar – Partner and India Leader, Cybersecurity, EY says, “Based on the significant enhancements of disruptive technologies, there will be a significant shift for CIOs with respect to managing their internal users and external service providers. CIOs are implementing self-service technologies to allow business users to get more control over their service needs, thus shifting attitude from  Do-It-For Me (DIFM) to a Do-It-Yourself (DIY). Curiously, in a lot many areas, CIOs themselves are looking to go for managed services, thus leaning towards DIFM themselves.

Of the respondents, 64% stated that their IT spend will increase as compared to the previous year. Though this is lower than the preceding surveys, it is encouraging that CIOs have proposed to spend more than 25% of their IT budget on innovation — newer technologies such as cloud, mobility and analytics — to achieve their business objectives.

There been a generic trend where smaller organizations will have a larger focus on increasing sales as compared to curtailing costs or improving margins. This focus shifts in favour of margin improvement for larger organizations. As gauged by the survey responses, matured and more established sectors (such as automotive, banking and financial services, manufacturing, power and utilities) believe improving margins to be their top IT driver. In contrast, growing or maturing sectors (such as retail and consumer products, infrastructure, technology, and life sciences) have voted for increasing sales to be their primary IT agenda.

Digital experiences are becoming more contextual and personalized. Customer experiences meeting customer needs, making them  personally relevant, and delivering in the moment will ensure success of the business. Digital transformation combines individual digital technologies, such as social, mobile, real-time 360 degree analytics capabilities and cloud, to deliver integrated business solutions that empower the business.

The report highlights the journey of the CIO from the predominant SMAC technologies in 2010 (SMAC 1.0), covering the trends observed in the recent past (SMAC 2.0) to the futuristic ones which will define the ever-increasing role of IT in the organization (SMAC 3.0).

Social Media gaining ground:

The importance of social media to reach various levels of customer growth is clearly gaining ground, as 54% of the respondents mentioned that social media has been really effective in engaging with customer s and enhancing collaboration. Another 33% respondents stated that they believe that social media will surely accrue benefits for them in the upcoming years.

Mobility underway

Mobility is not far behind in the journey. As depicted by the survey results, 52% of the respondents stated that they are considering mobility as a platform to enhance portability, by capturing data in real time. As compared to last year’s results, there has been a 5% increase in the number of CIOs opting for mobility. The trend is yet to catch on, but is not too far. Of the respondents, 25% mentioned that they may not have budgeted for enterprise mobility in the current financial year, but it is definitely in the pipeline.

Nitin Mehta, Director – IT Advisory Services, EY says, “Increasing sales and market share; and focusing on margins will be the key drivers for IT innovation in FY15-16.”

Analytics has arrived

This can be supported by the fact that among all the respondents who have considered data analytics to be important for the organization, 56% agree that social media is a major contributor to the success of its implementation. This implies that organizations can use the power of social media, integrate an analytics module to it, and provide specific results to users based on their browsing patterns and online profiles.

Radhakrishna Pillai – Vice President, CIOKlub says “the evolution of analytics is outstanding. From legacy basis reporting, analytics has advanced to entering into the minds of the customer and providing them with a solution to their needs”.

Cloud becomes more powerful

The survey results show an interesting trend indicating that investment in cloud computing is delivering a range of benefits, including a shift from capital-intensive to operational cost models, lower overall cost, greater agility, reduced complexity and better security. 57% respondents have agreed that cloud-based technologies have given significant benefits to organizations. Of these, 30% of the respondents are from the infrastructure, real estate and technology sectors. Further, 57% of the respondents plan to spend anywhere up to 25% on newer technologies, including cloud.

Cybersecurity - a neccessity

The survey also highlights cybersecurity as a board-level agenda. It is difficult to achieve ROI by investing in further prevention technologies. However, detection technologies will help organizations detect attacks, respond faster and minimize the damage. The survey results reveal that 73% of the respondents feel that to address cybersecurity risks, investments in a mix of preventive and detective technologies is necessary.

All in all, this year’s survey brings good tidings for the Indian CIO with an optimistic outlook, interesting trends and a view towards the journey to SMAC3.0


Meanwhile, the CIO Klub in association with Bombay Stock Exchange (BSE) has instituted Best CIO awards in 11 industry verticals. The Best CIO awards were given away on April 25, coinciding with the CIO Klub’s 7th anniversary and CIO Day celebrations.

Best CIO Award winners

The finalists were chosen from three nominations in each catergory. “It was a fair and transparent way of selecting and the nominees have to undergo 4-stage process amongst juries from companies like Microsoft, EY partners. We are extremely happy that the CIO Klub is making innovation year after year”, says Raghunatha Reddy, one of the organizers of the event.

The winners are:Ritu Madbhavi of FCB Ulka advertising (Media & entertainment), Vijay Sethi of  Hero Motorcorp (Automotives), Dr.J.S.Sodhi of Amity Education group (Services), Rahil Mahajan of K.Rahesja corporate services (Infrastructure), Pertisth Mankotia. of Sheela Foam (Sleepwell) (SMB), Girish Kulkarni of Medela Hospitals (Pharma and Life Sciences), Manoranjan Kumar of Sree Cement (Industrial Products), Thomson Thomas of HDFC Standard Life (Financial Services), Rupinder Goel of Tata Telecommunications (IT/ITES and Telco), Mukund Prasad of Welspun Group (Consumer products (retail)) and Rajat Sharma of Atul Limited (Chemicals and Petro Chemicals)