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Mind the gap in fast-changing environment

By Jouni Hakanen (China Daily) Updated: 2014-03-03 07:45

The Chinese economy has reached the stage where technology-digital savvy businesses are likely to be hailed as the new champions.

It comes as no surprise that chief information officer is one of the most sought-after roles in maturing Chinese enterprises, struggling to sharpen their technology teeth against competition in a fast changing and digitally driven environment. Although this may sound like great news for CIOs in China, they will need to understand the gaps in their current business and what digital strategies the real high performers and the leading CIO peers are driving across the globe.

Mind the gap in fast-changing environment
Chinese Internet firms dig big data gold 

Mind the gap in fast-changing environment

The gap is not only about mindset, but actions, too.

The mission of most IT organizations in China is to serve the business by focusing on ways to cut costs, improve productivity and streamline processes. There are good reasons for this, because more efficient operations and processes can help reduce costs. However, more recently we have seen the rise of a new breed of CIO who understands that investing in digital technologies can deliver real competitive advantage by enhancing the customer experience, driving new growth opportunities and improving overall performance.

Digital and physical businesses are blurring at increasing speed - and this will open up great opportunities. This development leads to another wake up call for CIOs: The importance of the business of apps. Software to enable company's new services through digital channels will become a core competence in the digital era.

Accenture's latest research, High Performers in IT, defined by digital, paints a compelling picture of these innovative IT leaders who are leaving their more conservative counterparts behind by investing in transformative new technologies such as cloud computing, analytics, social media, mobility and cyber security as active defense.

It reports that these technologies can help create more agile businesses that are better equipped to analyze and understand evolving demands from customers, pass them on to the right person at the right time and deliver new products and services that meet or anticipate customer needs.

The report reveals that high performers devote 55 percent of their information technology budgets to delivering strategic and new capabilities - increasingly through digital technologies - that support growth and business performance.

Because high performers have been early adopters of digital technology, they have a significant head start and are already reaping the benefits compared with those who are beginning to implement their digital strategies.

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