Digitization has transformed the business world. Digital tools are now ubiquitous in all aspects of commerce, from business processes to services and transactions, and one engine is driving the change: information technology.
Today's companies not only rely on information technology, they can't compete without it. IT is integrated into products, it pulls priceless information from customer data, and it is the force behind online shopping. As digital becomes even more prevalent, the demand for IT will continue to rise, which in turn will place a heavier burden on IT organizations. Driven by the further digitization of business and increasing market competition, IT is becoming even more indispensable.
What will IT 2020 look like? A new A.T. Kearney study reveals that over the next seven years, two-thirds of companies expect to invest more in IT in all areas along the value chain, but especially in sales and customer interactions. The moral of this story is that as IT gets a bigger slice of the corporate budget, expectations will rise, and even the smallest miscalculation about IT priorities will put the whole company at risk.
To cope with this pressure, top-notch IT organizations will focus more on business interactions—no easy task, given the shortage of business-savvy IT experts and the scarcity of other resources.
So tomorrow's IT challenges are basically a question of supply and demand. To meet these challenges, forward-thinking companies will capture long-term growth by striking a balance between the costs of IT and its value.
Let's look at IT's future from both a demand and a supply perspective.
Demand: IT's Evolving Business Role
Our study, which surveyed more than 150 chief information officers (CIOs) of large global enterprises and leading midsized companies, shows that IT requirements will grow rapidly until 2020: Nearly 85 percent of respondents say they foresee a significant increase over the next few years. Almost 75 percent say time pressure for implementing IT projects is also increasing, with the always complex time-to-market function becoming the key performance indicator.
Sales- and customer-driven applications are becoming the main focus of IT investments, according to 61 percent of CIOs (see figure 1). Improving processes and automating production, once IT's main focus, are giving way to fostering customer relations via personalized marketing campaigns, data analytics, and online ordering systems as key IT functions.
- See more at: http://www.atkearney.com/strategic-it/featured-article/-/asset_publisher/BqWAk3NLsZIU/content/it-2020-preparing-for-the-future/10192#sthash.j6uFEFCk.dpuf
Digitization has transformed the business world. Digital tools are now ubiquitous in all aspects of commerce, from business processes to services and transactions, and one engine is driving the change: information technology.
Today's companies not only rely on information technology, they can't compete without it. IT is integrated into products, it pulls priceless information from customer data, and it is the force behind online shopping. As digital becomes even more prevalent, the demand for IT will continue to rise, which in turn will place a heavier burden on IT organizations. Driven by the further digitization of business and increasing market competition, IT is becoming even more indispensable.
What will IT 2020 look like? A new A.T. Kearney study reveals that over the next seven years, two-thirds of companies expect to invest more in IT in all areas along the value chain, but especially in sales and customer interactions. The moral of this story is that as IT gets a bigger slice of the corporate budget, expectations will rise, and even the smallest miscalculation about IT priorities will put the whole company at risk.
To cope with this pressure, top-notch IT organizations will focus more on business interactions—no easy task, given the shortage of business-savvy IT experts and the scarcity of other resources.
So tomorrow's IT challenges are basically a question of supply and demand. To meet these challenges, forward-thinking companies will capture long-term growth by striking a balance between the costs of IT and its value.
Let's look at IT's future from both a demand and a supply perspective.
Demand: IT's Evolving Business Role
Our study, which surveyed more than 150 chief information officers (CIOs) of large global enterprises and leading midsized companies, shows that IT requirements will grow rapidly until 2020: Nearly 85 percent of respondents say they foresee a significant increase over the next few years. Almost 75 percent say time pressure for implementing IT projects is also increasing, with the always complex time-to-market function becoming the key performance indicator.
Sales- and customer-driven applications are becoming the main focus of IT investments, according to 61 percent of CIOs (see figure 1). Improving processes and automating production, once IT's main focus, are giving way to fostering customer relations via personalized marketing campaigns, data analytics, and online ordering systems as key IT functions.
- See more at: http://www.atkearney.com/strategic-it/featured-article/-/asset_publisher/BqWAk3NLsZIU/content/it-2020-preparing-for-the-future/10192#sthash.j6uFEFCk.dpuf
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