Technology adoption and corporate planning in Asia

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Technology adoption and corporate planning in Asia

  1. 1. S P O N S O R E D B Y :Plan to change, change the plan:Technology adoption and corporate planning in AsiaAn Economist Intelligence Unit report
  2. 2. 1© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaContentsPreface2Executive summary 3Introduction5How firms make technology adoption decisions 6How technology affects business planning and decision-making 10Conclusion12Appendix: Survey results 13
  3. 3. 2 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaPrefacePlan to change, change the plan: Technologyadoption and corporate planning in Asia is anEconomist Intelligence Unit (EIU) report,commissioned by SAP. The EIU conducted thesurvey and interviews independently and wrotethe report. The findings and views expressed hereare those of the EIU alone.This report is one in a series of three—the others,The potential and the reality and The new planningconversation, are based on the same survey andadditional expert insights.Ross O’Brien was the author of the report andSudhir Vadaketh was the editor. Tan Kane Juanwas responsible for design and layout.We would like to thank the following intervieweesfor their time and insights (listed alphabeticallyby organisation):Shawn Vadnais, regional services director, DSIRon Fons, global head, financial servicesindustries, HuaweiArina Campbell-Pitt, senior IT executive, Li FungPeter Bullock, partner and head of Asiantechnology practice, Pinsent MasonsMarch 2013
  4. 4. 3© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaExecutivesummaryFlexibility remains of vital importance to businesssuccess, particularly in Asia where marketsare growing rapidly and companies are underpressure to deliver both top-and-bottom-linegrowth. Strategic planning has become evermore critical and the need for speed in decision-making is increasing.Given the constant demand for “plannable”results and the need for nimble responses tochanging market dynamics, how do seniordecision-makers decide on technologicalchanges? Which stakeholders most influencetechnology adoption decisions? In turn, whatimpact do these new technologies have onbusiness planning processes? This report, basedon a survey of over 350 C-level executives in Asia,attempts to answer these questions.Among the key findings of this report are thefollowing:l For technology adoption decisions, firmsin Asia incorporate the views of many seniorexecutives, with the CEO as the ultimatedecision-maker. Asian firms consider a numberof voices in the technology planning process:a majority of respondents indicated that atleast two senior executives, usually the CEO andthe CIO, are critical influences in technologyadoption. Moreover, one-third of respondentsindicated that four or more executives haveimportant roles. Despite what appears to be aninclusive process, however, more than 60% ofrespondents said that the CEO is the ultimatedecision-maker in technology decisions.l IT “consumerisation” has made technologycrucial to relationships with employees andcustomers, and these external stakeholdershave become influential in decisions abouttechnology. The availability of relativelysophisticated technology to consumers isinfluencing the way workers use technology andincreasing their expectations of the technology’sutility, both on and off the job. Customers’ andemployees’ personal technology choices mustbe accommodated by the firms they work forand interact with. Senior executives are thusexploring and requiring the same flexibilityfrom the technologies they invest in. Almosttwo-thirds of respondents said customers havean important influence on their technologydecisions in Asia (more than one-fifth of thembelieve their influence is “great”). Similarly,more than half believe the same of employeesand business partners. Harnessing insights fromincreasing amounts of customer data and socialnetwork-delivered information (among othersources) requires a constant evaluation of newtechnology capabilities.
  5. 5. 4 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asial Technology and a closer alignment betweenC-suite functions are creating a positivefeedback loop between technology adoptiondecisions and the business planning process.While external stakeholders are exerting agreater influence on technology adoptiondecisions, the technology being adopted today isallowing business planners to better incorporatethe views of these stakeholders. This positivefeedback loop is reinforced by the closer strategicalignment between the CEO and the CIO.l Leading-edge technology adoption isaccelerating decision-making processes,prompting changes to organisationalmindsets. Roughly half of all respondents saythat new technologies—with the exception ofcloud computing—have a positive benefit oncollaborative decision-making. A similarly highpercentage say there is a link between theirtechnology choices and the pressure placedon managers to make decisions more quickly.Technology-driven collaboration only works,however, if the firm’s management enables all itsdecision-makers to access and leverage insightsenabled by the technology.l Successful firms recognise the need to setand monitor established plans as well as theneed for flexibility to adjust as required toaddress the market. Given the multitude of“non-IT” internal and external influences thatare becoming more influential and opinionatedin their recommendations on technologyadoption, firms in Asia should not adopt a singlebusiness practice or set of policies with regardto technology, but must adopt one that can beperpetually flexible.About the survey:The EIU surveyed 351 Asia-based C-levelexecutives. CEOs and CFOs together make up45% of the respondents; the rest are CIOs, COOs,CMOs, CHROs and other C-level executives. Interms of size, 38% work at companies whoseglobal headcount exceeds 1,000 people. Some28% of respondents work at firms whose globalannual revenues exceed US$1bn.The respondents work in a broad mix ofindustries—15% in manufacturing; 13% infinancial services; 9% in the energy and naturalresources sector; 9% in construction and realestate; 9% in the healthcare, pharmaceuticalsand biotechnology sector; and the remainderin IT and technology; professional services;chemicals; consumer goods; transportation,travel and tourism; retailing; automotive;logistics and distribution; telecoms; and someother smaller sectors.
  6. 6. 5© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaMany companies are expecting Asia to delivermore of their global profits, but with theAmerican and European markets remaining inthe doldrums few companies have the resourcesto invest fully to achieve that growth. Hencesenior executives are faced with the need toproduce top-line revenue growth that is in linewith economic growth rates in the region whileat the same time improving margins. Strategicplanning has become ever more critical and theneed for speed in decision-making is increasing.Executives are recognising the potential fortechnology to help in the planning process, bothin terms of quality and speed.Several new technologies in the market—including cloud computing, data capture andanalytics, enterprise mobility, software as aservice (SaaS), IT security and social media—have the potential to radically change the waycorporations conduct their strategic planningexercises. They can also heavily influencedecision-making processes within a firm.For instance, new technologies can allowfirms to implement strategy in a faster, morecoordinated fashion. They can also harness bigdata for insight, and allow more comprehensiveintelligence gathering from additionalstakeholders—most importantly customers,employees and business partners—via mobileand social media channels. Thus, technologyadoption decisions can be part of the actualprocess of strategic planning, while thetechnology adopted can then enable furtherprecision in business planning.However, in order for firms to integratetechnology seamlessly—and for that technologyto be properly utilised throughout theorganisation to aid planning and decision-making—they have to overcome severalroadblocks. These include competing technologyvisions within the C-suite; corporate structuresthat hinder the more collaborative and bottom-up information flows that technologies promote;and the persistence of legacy systems.This paper examines these two inter-relatedtrends: how firms in Asia make decisionson technology adoption; and how thosetechnologies subsequently affect strategicplanning and decision-making processes.Introduction
  7. 7. 6 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaAs discussed in the other reports in this series,senior decision-makers are both more aware ofthe need to engage with multiple stakeholders,as well as other members of the C-suite, in orderto accurately and consistently incorporatetechnology adoption decisions into businessstrategy.1Yet, while a sizeable number of ourrespondents indicated that as many as fourexecutives weigh in on the process, the ultimatedecision-maker is usually the CEO (see chart A).The clear implication is that technology decisionsare, ultimately, taken on board by a businessleader—which brings those decisions closer tothe overall strategy process almost by default.This, in turn, also helps define the CIO as a morestrategic team member; the fact that technologysolutions available to firms are partly selectedto achieve bottom-line objectives actually helpsreinforce this role.“The CIO is inclined to use tools like cloudcomputing, software as a service and outsourcingfirst from a ‘more for less’ perspective,” saysPeter Bullock, partner and head of the Asiantechnology practice at Pinsent Masons, a lawfirm. “The efficiency gains they enable allowthe role by default to become a more business-centric, strategic one.” New technologies—andthe way technology is adopted—are helping tobring the CEO and the CIO in closer strategicalignment. This creates a positive feedback loopbetween technology adoption decisions and thebusiness planning process.How firms make technology adoptiondecisions11This report is one in aseries of three—the others,The potential and the realityand The new planningconversation, are basedon the same survey andadditional expert insights.
  8. 8. 7© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia(% respondents)Chart A: Within your company, what degree of influence do the following functionalroles have on technology adoption decisions?Source: Economist Intelligence Unit survey321926613640566527494920811129511Relevantbusiness headIT specialistCFOCIO/CTOCEOUltimate decision makerStrong influenceSome influenceNo influence2But business leaders also look outside their innercircle for input. Almost two-thirds of respondentssay customers have an important influenceon a firm’s technology decisions in Asia (morethan one-fifth of them believe their influence is“great”). Similarly, more than half believe thesame of employees and business partners (seechart B).Not surprisingly, external parties far from thecore of the business—analysts, consultants andgovernment regulators—are not seen to haveparticular influence, although in these times ofheightened sensitivities around governance, theCFO and CIO respondents did indicate a slightlygreater willingness to seek input from regulators.Meanwhile, a majority of respondents say theygather insights from all these stakeholdersthrough formal attempts, either via regularlyscheduled sessions or business intelligencesystems. This has two powerful implications forthe business planning process.The first is that most technology adoptiondecisions have a huge impact on the wayfirms engage with their customers andemployees, partly because of the rapid uptakeof smartphones in Asia. The availability oftechnology to consumers is influencing the wayworkers use technology and increasing theirexpectations of the technology’s utility, bothinside and outside of the workplace. This “ITconsumerisation” means that customers’ andemployees’ personal technology choices must beaccommodated by the firm’s own systems. Seniorexecutives are thus exploring and requiringthe same flexibility from the technologies theyinvest in. As a result of all this, external partiesmust become ongoing components of the firm’stechnology adoption and decision-makingprocesses.Second, given that firms need speed and agilityto succeed in a fast-growing Asia, stakeholderinput must be gathered and assimilated quickly.Senior executives must harness the potential ofthose technology tools that help them achievethis. Survey respondents see two technologysolutions— data capture and analytics, and ITsecurity—as important in this process. Of thetwo, data capture and analytics is seen as beingof critical value in alleviating business challenges
  9. 9. 8 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asiarelated to customers, such as the lack ofcustomer data, and in driving customer-centricbusiness initiatives. The link between customerinput and the strategic planning process is clear:the more “formal” the capabilities for capturingand assessing the needs of customers, the betterit is for business planning at all levels.This closer relationship between a firm and itscustomers and employees further reinforces thefeedback loop between technology adoptiondecisions and the business planning process, asthese new technologies allow decision-makersto more effectively take on board the views ofexternal stakeholders. In other words, externalstakeholders are exerting a greater influence ontechnology adoption decisions; and those sametechnologies then allow business planners tobetter understand the external stakeholders’views.(% respondents)Chart B: What sources of information have the greatest influence on yourtechnology adoption decisions?Source: Economist Intelligence Unit surveyCustomersEmployeesBusiness partnersGovernment/regulatorsSuppliersProfessional service providersIndustry peers/ communitiesAnalystsExternal consultantsGoogle/ search engines21 42 27 8 3Great Influence 1 2 3 4 No influence 512 41 37 7 312 40 32 9 713 30 33 12 119 31 41 14 69 35 42 12 37 34 44 12 45 26 36 20 135 23 39 26 74 22 39 26 9This evolving dynamic between external partiesand a firm’s technology adoption and decision-making processes can be observed in the financialservices industry. Compared to the surveyaverage, financial service industry respondentsindicate that customers and employees aremore influential in their technology adoptiondecisions. “BYOD (Bring your own device) createstremendous variability in the devices, mediatypes, and locations which serves customers,”says Ron Fons, global head of financial servicesindustries at Huawei, an information andcommunications technology firm. He sees thistrend as having the ability to “flatten the silos” oftechnology that service these channels, in largepart because mobility increases the reach—andthe expectations—of the customer.The challenge for banks, he says, is whether theycan pack disparate applications together intoan “omni-channel”, where the end user getsthe same look and feel when he or she carriesa transaction from the laptop to the mobiledevice to the service counter—as opposed to“multichannel”, where the experience differsfrom one channel to the next.“Technology tends to be tied to a specificchannel, but customers don’t think of themselves
  10. 10. 9© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asiaas multichannel users,” says Mr Fons. To achievea coherent omni-channel requires considerationof design and process issues, not merely theadoption of new technology applications. Inaddition, this must be matched with increasedsecurity. “Security concerns increase with abroadening of contact points outside the firm,”says Mr Fons.
  11. 11. 10 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaHow technology affects businessplanning and decision-making2specifically, are highlighted as tools that haveforced managers to respond more quickly, ormake decisions in a collaborative environmentfaster. Over half of the survey respondentsindicated that data capture and analytics enabledthis (see chart C).(% respondents)Chart C: What impact have the following technologies had on decision-makingprocesses within your organisation?Source: Economist Intelligence Unit survey212426273233284244444450314243425052442724221315Cloud computingSocial media technologiesEnterprise mobilitySoftware as a serviceIT securityData capture and analyticsMoved decision-making capabilities downthe corporate hierarchy; front-line empowermentIncreased pressure on managers to respond instantlyMade collaborative decision-making fasterHave yet to implementRegardless of where their business is basedor how large an organisation they run,survey respondents definitely feel that thenew technologies have accelerated planningprocesses—or, at a minimum, put pressure ondecision-makers to speed them up. Enterprisemobility and data capture and analytics,
  12. 12. 11© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaIt is in this last point—and indeed, in the word“collaborative”—that an important implication isrevealed. While the Asian business environmentrequires and rewards speedy response time,businesses can only respond quickly andeffectively if knowledge, responsibility andcapability flow down through the organisation.This creates a chicken-and-egg conundrum: howcan business leaders create efficient decision-making processes based on technologies usingmore precise data if they do not have this data inthe first place? The answer may lie in the ability offirms to experiment quickly and cheaply with newtechnology tools and solutions, and to measuretheir impact on internal and external corporateprocesses.As with many new enterprise technologies,mobility is one of the first channels where thisinformal RD process starts: “Decision-makerswithin firms today already have multiple mobiledevices on them, and mobile device proliferationdramatically increases the data channels towhich they have access,” says Shawn Vadnais,regional services director for Asia Pacific at DSI,an enterprise mobility solutions firm. “This givesthem increased visibility onto new processes—and their response time also increases quickly.”One specific way in which Asian firms areputting this experimentation to work in creatingconcrete business value is in their usage of utilitycomputing. More than 40% of respondents saySaaS facilitates collaborative processes andreduces decision-making times. After IT securityand data capture and analytics, SaaS has thehighest adoption rate of any new technology inour survey. Only 24% of respondents have notyet implemented SaaS at all, and nearly halfhave done so specifically in order to expedite thecollaboration process.“The ability for smaller teams to respond quicklyto many different requests is possible becausethere are so many pay-as-you-go tools availablefor trialling, testing and modifying solutions,”observes Arina Campbell-Pitt, a senior ITexecutive at Li Fung, a global supplier. Thisapproach is like a buffet: effective technologyservice provision offered to the greatest numberof knowledgeable, empowered, enterprise userspossible so that they can help themselves. Thisnot only speeds up adoption and enhancesefficiencies; it also distributes the burdenof technology innovation throughout theorganisation. “The only way to respond to anever-increasing number of technology requests isto ensure that the buffet table is always as full aspossible, while getting end users to weigh in onwhat, and how much, they are consuming,” saysMs Campbell-Pitt.The tools that firms adopt, and the way theyintegrate those tools into their businessplanning practices, are naturally dependent ontheir operating environments. Respondents ininformation-intensive sectors, such as financialservices and healthcare, indicate that theyare much more likely to bring the technologyplanning team into the business strategy processearly, usually at initial project commissioning.Finance respondents believe that earlyinvolvement of technology planners is criticalfor process redesign, and for projects involvingcustomer interactions.These conditions, particularly in fast-growingAsia, change rapidly, as do the capabilities andcompetencies of the firms themselves. The pacewith which enabling technology flows down toline managers and even front-line employees isdue to a confluence of trends changing the wayenterprise technology is accessed. The cloudmodel, for instance, allows for “pay-as-you-go”usage and the ability for users to access, modifyand deploy new applications without necessarilyhaving technology skills. Furthermore, personaltechnology, particularly mobility, is influencingthe way workers use technology, and increasingtheir expectations of the technology’s utility. Thecorollary of that is that firms should not adopta single business practice or set of policies withregards to technology, but must adopt one thatcan be perpetually flexible.
  13. 13. 12 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaC-suite executives in Asia have found thatinvestments in new technologies such as datacapture and analytics can accelerate the planningprocess. This in turn increases the ability ofdecision-makers within the organisation toinform, define, communicate, react to, andachieve their strategic objectives.Therefore, to maximise this positive effect—andideally tighten up the cycles between planningand execution—technology investments mustbe an integral part of overall business strategy.This only works, however, if management enablesdecision-makers throughout the organisationalhierarchy to access and leverage insights enabledby these technologies.Similarly, collaboration is enhanced by these newtechnologies, potentially increasing productivityand idea generation across the organisation.But in order to realise this, a key part of thetechnology adoption process must be a change orreinforcement of this mindset to inform, enable,and empower decision-makers.The larger implication here is not that a firm’sdecision-makers have to come from information-centric industries in order to make the righttechnology decisions that help quicken andsmarten their overall business planning process.Rather, all executives running businesses in Asiamust understand what early adopters perhapsinstinctively grasp: that responding to newtechnologies in a fast and flexible way, and in away that considers their impact on the businessfrom an early stage in the planning process,will likely cause them to base their technologydecisions around business-critical functions suchas getting more insight out of customer data, orcreating more efficient workflows.Technology, in turn, builds more robust and morenimble decision-making processes, becausethese tools help executives do two things morepowerfully: gather insight from increasing pointsof data, and empower more team members toexecute business plans based on the implicationsof those insights. Plans based on the notion thatplans must change will be the most successful inAsia’s complex, fast-running markets.Conclusion
  14. 14. 13© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaAppendix:Survey resultsNote: Percentages may not total 100 due to rounding or the ability of respondents tochoose multiple responsesIn which country are you personally located?(% respondents)23345777811111618TaiwanVietnamThailandIndonesiaPhilippinesSouth KoreaMalaysiaJapanHong KongSingaporeChinaAustraliaIndia
  15. 15. 14 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaWhat is your primary industry?(% respondents)How many people work at your organisation?(% respondents)111111223456889991315Aerospace and defenceTelecomsGovernment/Public sectorLogistics and distributionEducationAgriculture and agribusinessEntertainment, media and publishingAutomotiveRetailingTransportation, travel and tourismConsumer goodsChemicalsProfessional servicesIT and technologyHealthcare, pharmaceuticals and biotechnologyEnergy and natural resourcesConstruction and real estateFinancial servicesManufacturing1127141212896Over 10,0001,001-10,000501-1,000201-500101-20051-10011-501-10
  16. 16. 15© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in AsiaWhat are your organisation’s global annual revenues in US dollars?(% respondents)Which of the following best describes your title?(% respondents)1. Are the following operational challenges keeping you awake at night?(% respondents)73182547$10bn or more$5bn to $10bn$1bn to $5bn$500m to $1bn$500m or less0891112151926Other C-level executiveCHRO/HR director, or equivalentCIO/Technology director, or equivalentCMO/Marketing director, or equivalentCOO/Head of operations, or equivalentCFO/Treasurer/Comptroller, or equivalentCEO/President/Managing director, or equivalent173034353841414953837066656259595147Labour unrestInfrastructure deficitsIntellectual property theftProperty prices/ rentsLegal/regulatory uncertaintyWorking capital/getting paidInsufficient market/customer dataRising labour costsStaff shortages
  17. 17. 16 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia2. Is your company undertaking the following strategic initiatives in Asia?(% respondents)3a. For each of the concerns you’ve identified, please indicate if any of the following technologiesare being adopted to address the challenge. Please tick all that apply.(% respondents)124651567172727482885449442928282618Other, please specifyReducing capital expenditureBuilding new production facilitiesIncreasing local content in product/design/RD processesRevising/creating new customer segmentsCreating new products/servicesReducing operational costsEntering new marketsImproving profitability106111522161715222325262934363742441811171726232119261591820272023222812718191615181822151511171527262817Staff shortagesInsufficient market/customer dataBuilding newproduction facilitiesIncreasing localcontent in product/design/RD processesReducingoperational costsEntering new marketsCreating newproducts/servicesRevising/creating newcustomer segmentsImproving profitabilityData capture and analyticsEnterprise mobilitySoftware as a serviceEnhancing IT securitySocial media technologiesCloud computing
  18. 18. 17© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia04896511151081111131417202267108613171857710812171662479111011155855861010Labour unrestIntellectual property theftProperty prices/ rentsInfrastructure deficitsLegal/regulatory uncertaintyWorking capital/getting paidReducing capital expenditureRising labour costsData capture and analyticsEnterprise mobilitySoftware as a serviceEnhancing IT securitySocial media technologiesCloud computing4. Please rate the following technologyadoption issues in terms of their impact onyour business strategy in Asia. Rate on a scaleof 1 to 5, where 1 = Critical impact and 5 = Noimpact. (% respondents)121115162526213138363741323528272419161513141091996745Cloud computingSocial media technologiesSoftware as a serviceEnterprise mobilityIT securityData capture and analyticsCritical Impact 1 2 3 4 No impact 5
  19. 19. 18 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia5. At what stage are you in implementing a strategy to address your business challenges?(% respondents)6. How has implementing these technologies changed the perception of IT within theorganisation? Rate on a scale of 1 to 5, where 1 = Strong positive impact and 5 = Strong negativeimpact. (% respondents)Data capture and analytics (managing big data)IT securitySoftware as a service (or other IT utility usage models)Enterprise mobilitySocial media technologiesCloud computing47 22 16 6 939 40 11 7 333 32 15 10 933 27 19 10 1121 42 17 11 99 37 15 14 25Fully adopted; in management and refinement stageIn process of adoptingEvaluating implementation optionsConsidering need for adoptionNo action taken13101314212026363034393921273128242927441411111038212219148Cloud computingSocial media technologiesEnterprise mobilitySoftware as a serviceData capture and analyticsIT securityStrong positive impact 1 2 3 4 Strong negative impact 5 Have yet to implement
  20. 20. 19© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia7. When your company evaluates technology adoption, are strategic objectives or financial/budgetary considerations more important? (% respondents)8. Which statement best describes your company’s position relative to your industry peers interms of technology adoption?(% respondents)9. Which statement best describes the role of your CIO in decisions regarding business strategy?(% respondents)172261Budgetary considerationsare more importantStrategic objectivesare more importantStrategic and budgetaryconsiderations areequally important1163152Don’t knowWe are laggingour industry peersWe are anindustry leaderWe are on par withthe industry average18253333CIO takes direction on technologyimplementation primarily from the CFOCIO takes direction on technologyimplementation primarily from the CEOCIO makes technology decisions basedprimarily on the firm’s operationalrequirements, and/or budgetary parametersCIO is actively involved in the planningstages of all firm-wide strategic initiatives,and makes technology decisions basedprimarily on the firm’s strategic direction
  21. 21. 20 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia10. Which statement best describes the role of your CIO in your IT decisions?(% respondents)11. Which statement best describes the role of your CEO in decisions regarding the adoption oftechnology? (% respondents)12. Within your company, what degree of influence do the following functional roles have ontechnology adoption decisions? (% respondents)23232727CIO’s role is purely strategic:interacting with other CXOsand communicating firm’soverall strategy withdirect reportCIO is actively involved inthe day-to-day operationsof the IT departmentCIO is involved with anysoftware or IT service decisionCIO is involved with bigenterprise IT decisionsbut not individual softwareor IT service discussions28 3536912202336CEO relies on theadvice of the CFOCEO is involved in evaluatingoptions based on budgetaryconstraints.CEO relies on theadvice of the CIOCEO is involved in evaluatingoptions based on operatingneeds of the companyCEO is actively involvedin evaluating options basedon strategic objectives321926613640566527494920811129511Relevantbusiness headIT specialistCFOCIO/CTOCEOUltimate decision makerStrong influenceSome influenceNo influence2
  22. 22. 21© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia13. What sources of information have the greatest influence on your technology adoptiondecisions? Rate on a scale of 1 to 5, where 1 = Great influence and 5 = No influence.(% respondents)14. What methods do you use to capture stakeholder feedback? Select all that apply.(% respondents)CustomersEmployeesBusiness partnersGovernment/regulatorsSuppliersProfessional service providersIndustry peers/ communitiesAnalystsExternal consultantsGoogle/ search engines21 42 27 8 3Great Influence 1 2 3 4 No influence 512 41 37 7 312 40 32 9 713 30 33 12 119 31 41 14 69 35 42 12 37 34 44 12 45 26 36 20 135 23 39 26 74 22 39 26 9134343842455157Other, please specifyCommissioned user experience surveysSocial mediaTrendwatching/market intelligence gatheringPoint-of-sale/touchpoint feedback collectionInformal methods (eg, conversations)Business intelligence/enterprise planning systemsRegularly scheduled discussions601
  23. 23. 22 © The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia15. Which of the following technology adoption issues are of most concern to your externalstakeholders? Select up to three. (% respondents)16. What impact have the following technologies...(% respondents)222736464756Social media technologiesCloud computingSoftware as a service(or other IT utility usage models)Enterprise mobilityIT securityData capture and analytics(managing big data)36 48 603646475655212426273233284244444450314243425052442724221315Cloud computingSocial media technologiesEnterprise mobilitySoftware as a serviceIT securityData capture and analyticsMoved decision-making capabilities downthe corporate hierarchy; front-line empowermentIncreased pressure on managers to respond instantlyMade collaborative decision-making fasterHave yet to implement
  24. 24. 23© The Economist Intelligence Unit Limited 2013Plan to change, change the plan: Technology adoption and corporate planning in Asia17. Which of the following statements best describes the relationship between technology trendsand ongoing strategic planning? (% respondents)18. At what stage of the following types of specific business strategy initiatives is the technologyplanning team brought in? (% respondents)19. To what extent do you agree with the following statements? Rate on a scale of 1 to 5, where 1 =Strongly agree and 5 = Strongly disagree. (% respondents)7153543Our technology decisionsare reactive to external pressuresTechnology decisions arelargely financially drivenand unconnected to corebusiness strategyTechnology adoption decisionsare evaluated concurrently withlarger business strategy decisionsTechnology decisions areformulated as a result of ouroverall business strategy processInitial project commissioningProject specification and designAfter project kick-off323841464035393827272016Revising key enterpriseperformance metricsNew product designAddressing/refiningcustomer experienceProcess redesign orefficiency driveSenior management believes the abilityto adopt leading-edge IT solutions iscritical to business performanceOur firm’s ability to adopt business-relevant technologyhas provided us with competitive advantageSenior management can clearly seesignificant trends on the IT horizonWe are usually an early adopter of the ITsolutions that matter most to our firmSenior management has the ability todetermine which new IT trends will havesignificant impact on our business32 40 23 3130 33 25 9 327 42 21 9 123 28 30 15 522 29 28 9 1Strongly Agree 1 2 3 4 Strongly disagree 5
  25. 25. While every effort has been taken to verify the accuracyof this information, neither The Economist IntelligenceUnit Ltd. nor the sponsor of this report can accept anyresponsibility or liability for reliance by any person onthis white paper or any of the information, opinions orconclusions set out in this white paper.
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