Bye Bye 2015: CMOs, CFOs joining CIOs in digital leaps

BANGALORE, INDIA: According to Adrian De Luca, chief technology officer of Hitachi Data Systems AsiaPacific, enterprises will experience major digital transformation next year as they strive to improve a host of key tech and non-tech functions.

“Digital transformation is fast becoming an organizational issue. It is no longer just CIOs who are championing the need for digital change, but leaders across all business functions. For example, CMOs are finding that traditional ways of marketing are not as effective any more, while CFOs are discovering that consumer and supplier transaction models have shifted. There is now an almost universal understanding within businesses that all functions need to look at how they transform their own practices through digitization,” said De Luca.

He cited digital transformation, smart cities, cross modal IT, multicloud,and skills shortages as the five key trends that will continue to shape both the IT and business landscapes in Asia Pacific for 2016.

1: Traditional enterprises will transform into digital natives

There has been a resurgence in confidence among CIOs that they will see more of their revenues flowing through digital channels. According to the Gartner CIO Agenda Insights report, only 16 per cent of CIOs last year expected the revenues in their business to flow through digital channels, but that has more than doubled this year to 37 per cent. This is recognition of the fact that digital initiatives are not just coming from the CIO, but from all functions of the business that are creating their own platforms and hiring digital natives.

Today’s CMOs no longer go to the IT department to build their systems. They go directly to the providers and acquire them as a service. The same is true of businesses as a whole. Rather than waiting for a vendor or a competitor to develop a new platform, organizations are building and actively disrupting their own current systems.

2: Smart companies will build smart cities

Smart cities have been a topic of interest for a long time in Asia Pacific, with many countries in the region rolling out their own initiatives to tackle everything from public safety to improved transportation. However, it has become apparent that few governments have the experience or the financial means to build and run these initiatives on their own. Instead, they are partnering with major industry players who are investing deeply in the Internet of Things (IoT). By bringing their own intellectual property, assembling ecosystems of technology providers and integrating them together, they can develop the solutions needed to make these cities a reality.

3: Cross-modal IT will unify business silos

It is now recognized that there are two modes that IT organizations can follow to meet the needs of the digital enterprise.

Mode 1 – Applications that handle traditional systems of record – such as CRM and ecommerce systems. These systems are built around predictability, accuracy and availability, given the sensitive data they hold.

Mode 2 – Systems of insight, that are more exploratory such as big data analytics. They give a perspective of what is going on inside a business – enabling users to test certain hypotheses by layering datasets over each other. The need to fuse these two modes together to become cross-modal will intensify. The companies that will realize the greatest benefits will be those that are able to use agile methodologies in their workforce and offer quick-to-build application programming interfaces (API) of their business services. Businesses that also successfully build data lakes across their digital assets and standardize their infrastructure will do well, too.

4: Multicloud will enable trans-regional business

According to De Luca, the emerging Trans-Pacific Partnership (TPP) promises to bring significant benefits to economic trading conditions within Asia-Pacific. To realize the full potential of this agreement, investment in technology infrastructure to connect these economies will be critical. The creation of direct routes between key areas like South East Asia, Australia and the United States of America is well underway.

“This opening up of the market will have an impact on how businesses consume cloud and expand the options that they have today. With as many as 70 per cent of organizations either using or evaluating hybrid clouds nowadays, as well as provisions in the TPP to protect offshore data and avoid electronic duties, creating a multicloud across continental borders to allow businesses to expand becomes viable,” said De Luca.

5: Skills shortage will spark a talent pursuit

Several factors will impact the technology employment market in 2016, forcing many organizations to look at how they will fill the talent deficit to continue to innovate and remain competitive.

"The working practices of ‘Gen Z’ workers are vastly different from those before them. With this generation expected to work an average of 17 jobs in their lifetime, they willdevelop a broader variety of skills as well as be exposed to multiple industries during their careers. Companies will need to figure out how to tap into this. They are driven more by their contribution to society than the logo of the company they work for,” said De Luca.