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Investing in Growth - Enterprise IT Investment Trends 2011
EY – CIO KLUB


This year's survey was conducted from 21 February 2011 to 11 March 2011. More than 200 CIOs from various companies across all major industries participated.

Spend allocation on compliance and maintenance is on decline and focus on innovation and helping business realize benefits is greater. However a balance between innovation and maintenance is critical for effective functioning of IT.
Investments in IT remain in the range of 1-3 percent of the revenue, consistent across sector and revenue segments.
IT spends are increasing and are in line with the overall aim of accelerating business performance.
Business and IT alignment is essential for the growth of the business. Harnessing positive relationship between information technology and its users is essential for establishing effective IT organizations.
Data leakage prevention, single sign-on, data encryption and digital rights management are key technologies identified to protect the organizations from external and internal threats.
Use of new dimension applications such as CRM, BI/ DW can bring organizations closer to customer needs and extend the benefits of IT from simply 'automation' to 'information'.
Increase in IT spend is necessary to sustain the business growth. However, there is potential to achieve better operational efficiencies of IT function.
Virtualization provides cost benefits and better control over IT infrastructure. Concerns over security and privacy of data need to be addressed for effective cloud technologies deployment.
Mobility/ PDA solutions, unified communications and RFID systems are upcoming Technology areas that will attract investments.

UID

83% of the respondents believe that UID can be used for background verifications and there by reducing the organization spend on this critical activity. Further, respondents have shown interest in using UID towards payroll processing and authentication of user access.

Automotive

Business intelligence and data warehouse applications are expected to give significant edge to Auto companies in decision making.
Top five priorities for Auto sector are:

  • Business alignment
  • Implementing customer centric and business intelligence applications (CRM/BI/DW)
  • Information security
  • Business continuity
  • Cost reduction

Banking and Financial Services
Top five priorities for Banking and Financial Services sector are:
  • Business continuity
  • Information security
  • Business alignment
  • Cost reduction
  • Compliance

Pharmaceuticals and Health Sciences
IT functions in Pharmaceuticals and Health sciences companies are mainly managed in-house and focus on outsourcing is on a lower side.
Top five priorities in order for Pharmaceutical and Health Sciences sector are:
  • Business alignment
  • Business continuity
  • Cost reduction
  • Implementing customer centric and business intelligence applications (CRM/BI/DW)
  • Implementing ERP applications

Manufacturing Sector
Top five priorities for Manufacturing sector are:
  • Business alignment
  • Business continuity
  • Information security
  • Cost reduction
  • Implementing customer centric and business intelligence applications (CRM/BI/DW)

Media and Entertainment Sector
Top five priorities for Media and Entertainment sector are:
  • Business alignment
  • Business continuity
  • Implementing customer centric and business intelligence applications (CRM/BI/DW)
  • IT consolidation
  • Mobility/ PDA and Cost Reduction

Professional Services
Customer relationship management (CRM) is becoming a 'must have' for professional services organizations.
Top five priorities for Professional Services sector are:
  • Business Continuity
  • Business Alignment
  • Information Security
  • IT process and performance improvement and IT consolidation
  • Cost reduction

Construction and Real Estate
Top five priorities for construction and real estate sector are:
  • IT consolidation
  • Implementing ERP application
  • Value delivery to business
  • Business continuit
  • Information Security

Technology Service Sector
Top IT priorities for Technology service sector during the coming year are:
  • Business alignment
  • Green IT
  • Cost reduction
  • Compliance
  • Value delivery to business

Logistics and Transportation Sector
Top five IT priorities for Logistics and Transportation sector, based on the survey findings are:
  • Information security
  • Business alignment
  • IT process and performance improvement
  • Implementing customer centric and business intelligence applications (CRM/BI/DW)
  • Value delivery to business

Enterprise IT Investment Trends Survey - 2011 : Download full report»