Research: Nearly half of surveyed South African CIOs believe they cannot extract value from data with current IT infrastructure
Hitachi Data Systems Says Aligning IT With Business Strategy Can Help Accelerate South African Business Growth
- According to the research, 48% of surveyed South African CIOs agree that current IT processes are restricting organisations’ ability to leverage data to drive growth.
- Only 20% of surveyed CIOs strongly feel they have enough access to business leaders to develop and execute effective IT strategy.
- HDS calls for CIOs and business leaders to work together to define IT strategy that can accelerate growth and create business advantage.
South Africa — November, 19 2014 — Hitachi Data Systems Corporation (HDS) today announced the results of its inaugural Information Innovation Index which interviewed a sample of South African CIOs. The results highlight that nearly half (48 per cent) of surveyed South African organisations are struggling to extract value from information due to current approaches to IT.
“South African organisations can accelerate business growth and competitive advantage by aligning IT with business strategy,” says Wayne Dick, business development manager for sub-Saharan Africa, Hitachi Data Systems. “‘IT-accelerated’ businesses use technology as a strategic asset, helping them to derive intelligence and mobilise information, enabling them to be more competitive. Organisations that take a ‘Business-Defined IT’ approach to information, leveraging it beyond its primary and intended use, and connecting it with other datasets, will lead the way with innovation, and benefit from the creation of new revenue streams.”
Research suggests South African organisations are sitting on untapped business intelligence
- The Vanson Bourne survey of 50 IT decision-makers from South African organisations with over 1,000 employees highlighted that 90 per cent of CIOs agree to some extent that IT’s traditional approach to storing and managing information is preventing businesses from leveraging data insights to drive growth.
- Consequently, 54 per cent of South African businesses are not actively mining untapped intelligence, and of those not doing so, 44% have no intention to start.
- 60 per cent of CIOs wish their organisation was investing in big data analytics to identify insights that could fuel business growth.
- 98 per cent of CIOs believe to some extent that IT could be doing more to support business leaders in their goal of leveraging data to fuel growth.
Questions around return on information
- 36 per cent are not confident that people in the business have the necessary skills to act on insights garnered from untapped business intelligence.
- Only 20 per cent strongly feel they have enough access to business leaders within their organisation to develop and execute an effective IT strategy that drives growth.
- Just 14 per cent strongly agree that their organisation is doing enough to innovate with information.
Concerns over compliance
- The vast majority of CIOs surveyed (88 per cent) feel their organisation is currently drowning in data to some extent.
- 86 per cent of CIOs agree to some extent that failing to address their untapped business intelligence will lead to issues with compliance and regulation.
- 68 per cent believe that serious risk lies in data that is saved and discoverable.
- 82 per cent of CIOs are also concerned about whether existing data protection policies are capable of handling big data analytics.
Aligning IT to business strategy can help accelerate South African business growth
“Information can be a transformative force in business if decision-makers are able to shape what it does. By realigning the relationship between business management and IT, and tapping into the vast troves of company intelligence, organisations can quickly accelerate beyond their nearest competitors,” said Dick. “Organisations that view IT holistically can enable greater productivity, drive new revenue opportunities and unleash growth potential.”
Bob Plumridge, chief technology officer (EMEA), Hitachi Data Systems, said, “Information is the DNA of every organisation and will one day have its place on the balance sheet. South African organisations need to look at how they can transform their information infrastructure by exploring a journey towards public, hybrid or private cloud environments, or a combination based on application needs, to make data a true company asset.”
HDS calls for CIOs to align business objectives with technology capabilities and leverage data to drive South African business growth.
Companies that want to glean business insight in order to drive innovation and ensure compliance need to consider:
Untapped intelligence can no longer be ignored: Though it can be tempting for companies to continue as they are, firms can ensure compliance and save costs through more efficient use of existing infrastructure, and even open up new revenue streams by interrogating untapped intelligence.
IT is a strategic asset that needs to be maximised: As new world economics, developments in enterprise mobility and ‘anything as a service’ (XaaS) delivery models continue to break apart traditional business operations, business leaders need to adopt a strategy that refocuses their companies’ approach to IT, for example, by shifting investments from a capex to an opex model, in order to drive more value from IT, reduce costs and accelerate business growth.
Data analytics are vital: Data analytics can highlight areas of inefficiency, map industry and customer trends, reduce costs, help provide a better customer experience and identify new revenue streams. It is essential that data is not siloed and that companies have available resources, both in terms of skills and infrastructure, for data analytics to be most effective.
About Hitachi Data Systems
Hitachi Data Systems provides information technologies, services and solutions that help companies improve IT costs and agility, and innovate with information to make a difference in the world. Our customers gain compelling return on investment (ROI), unmatched return on assets (ROA), and demonstrable business impact. With approximately 6,300 employees worldwide, Hitachi Data Systems does business in more than 100 countries and regions. Our products, services and solutions are trusted by the world's leading enterprises, including more than 70% of the Fortune 100 and more than 80% of the Fortune Global 100. Visit us at www.HDS.com.
About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 326,000 employees worldwide. The company’s consolidated revenues for fiscal 2012 (ended March 31, 2013) totaled 9,041 billion yen ($96.1 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional material & components, automotive systems and others. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.