The Asia - Pacific Business IT Landscape for 2016

Thu, Feb 18 2016 | Author: PT. Central Data Technology

The business IT landscape is constantly being shaped and re-shaped by forces beyond pure technological innovation and advancement. Here in the Asia Pacific,  key developments will come into play in 2016. They include market-driven digital transformation, the rise of smart cities, the demand for greater business agility, the emergence of regional trade pacts and the need for companies to grapple with the ongoing shortage of IT skills.

1. Traditional enterprises will transform into digital natives

2016 will see enterprises experiencing major digital transformation as they strive to improve a host of key functions, not just in technology but also across the entire organization (see Figure 1).

There has been a resurgence in condense among chief information officers (CIOs) that digital channels will generate more revenues for the business. According to the Gartner CIO Agenda Insights report1, only 16% of CIOs expected the revenues in their business to flow through digital channels in 2014, but the proportion more than doubled to 37% in 2015.

Figure 1


This trend will only accelerate as we see digital change increasingly being championed not only by CIOs but also by leaders across all business functions. For example, the push is also coming from chief marketing officers who are ­ending that traditional ways of marketing are not as effective any more. Chief ­financial of­ficers are also 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 can transform their own practices through digitization.

 Figure 2

2. Smart companies will build smart cities

Smart cities have been more than a topic of interest in the Asia Paci­fic. Many countries in the region are rolling out Government-backed initiatives, ranging from eGovernment and public safety2 to intelligent transportation, in order to tackle the challenges of rapid urbanization. Although intentions remain strong, few governments have the experience or the fi­nancial means to build and run these initiatives on their own. Instead, they are partnering industry innovators who have invested deeply into the Internet of Things (IoT).

These players bring their own intellectual property to the table and are able to assemble ecosystems of technology providers, integrate their systems and deliver solutions that will turn smart cities into a reality. As governments open the door for private-sector participation through initiatives such as Digital India and Smart Nation Singapore, the business opportunities for companies in the technology sector are huge. According to Navigant Research, the annual investment in smart city technologies is set to quadruple between 2014 and 2023 to US$11.3 billion.


3. Cross-modal IT will unify business silos

Many IT organizations have understood the need to evolve into two separate modes of operation in order to meet the demands of the digital enterprise (see Figure 2). Mode 1 covers applications that handle traditional in-house systems of record such as customer relationship management and ecommerce systems. These support core business operations and are thus built around predictability, accuracy and availability

Mode 2 comprises systems of customer interaction and insight, such as those handling mobility and big data analytics. These systems provide customers with mobile access to business services and enable businesses to tap on huge datasets for predictive modeling, allowing them to test hypotheses in order to respond quickly to the

dynamics of the marketplace. These systems emphasize agility and speed. In 2016, we will see the more progressive organizations starting to cross-leverage these two modes of IT. They will introduce modern agility features into their Mode 1 systems and greater predictability and manageability into Mode 2. Companies that are successful in creating a standardized, converged IT infrastructure and in building data lakes across their data assets will realise the greatest bene­fits. Those who introduce agile methodologies and build application programming interfaces (APIs) for their businesses services will also have the upper hand over their competitors and attract more customers who are demanding simpler digitized interactions.


4. Multicloud will enable transregional business

The emerging Trans-Paci­c Partnership (TPP) promises to bring signi­cant bene­ts to economies in the Asia Paci­c (see Figure 3). To realize the full potential of this agreement, it will be critical for countries in the region to plan and invest in the next generation of technology infrastructure to connect their economies now. Today, as many as 70% of organizations are either using or evaluating hybrid clouds across the region. The TPP will not only lower the barriers to consuming intercontinental cloud services, but also make it easier for companies to expand across the Asia Paci­fic region. Companies that adopt a multi-cloud strategy will not only use it to minimize the risk of widespread data loss or downtime due to localized component failure in the cloud computing3 environment, but also to springboard into new countries faster and easier. The emerging provisions in TPP to protect offshore data and avoid electronic duties will create greater con­dence for businesses to harness this new mode of building IT. Several IT providers have already started to lay the groundwork for this. They are expanding data center capacity to cater to the anticipated growth in cloud computing and investing in cross-continental high-speed connectivity to create direct routes between key economies in Southeast Asia, Australia and the United States of America.


5. Skills shortage will spark a talent pursuit

The shortfall in IT skills will force organizations to re-examine how they address the talent deficit while continuing to innovate and remain competitive. The solution will lie not just in churning out more IT graduates with skills that are in demand, such as DevOps and data science; organizations will also need to ­find ways to appeal to young talents by providing a flexible working environment while investing in their existing employees to bridge the skills gap.

The up-and-coming “Gen Z” worker is expected to go through an average of 17 jobs in his or her lifetime. These workers will develop a broader variety of skills and be exposed to multiple industries over the course of their careers. They are driven more by their contribution to society than the logo of the company they work for.

Organizations will need to fi­gure out how to tap into the energies of the “Gen Z” cohort, focus on continual learning and manage the generational shift in IT talent. Crowdsourcing will emerge as a way

for organizations to enlist a wider pool of talents. This will enable them to avoid the slow ramp-up of having to hire people to complete tasks or projects, and allow them to tap on potentially more creative solutions to problems. At the same time, those who invest in

cloud-based tools such as video conferencing, real-time messaging and file sync-and-share and provide effective training for their existing employees will see an increase in productivity.


Figure 3

Written By : Adrian De Luca, Senior Director Solutions and CTO APAC Hitachi Data System 



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