Forrester: CIOs should up the ante with new digital technologies

More than 70% of technology budget decision-makers in Asia Pacific indicated that improving customer satisfaction will be a high or critical priority in 2014, according to a new report by Forrester Research. Unfortunately, less than half of technology leaders are taking action to address the customers. Forrester's latest survey data also indicates that customer-centric technology initiatives are far down on tech leaders' priority lists.

“Competition for customers is getting fiercer. Other than industry rivals, businesses need to watch for a new wave of digital startups,” says Tim Sheedy, Forrester Research Senior Analyst for CIOs and author of the report. “Only customer-obsessed businesses who are willing to serve customers in the world they now live in, on smartphones, tablets, and social networks, will thrive in this new competitive era.”

The findings also show that the IT department is being disrupted by business units (BUs) that perceive technology initiatives by technology leaders as inadequate in delivering business outcomes. While enterprise tech management spending by CIOs across Asia Pacific retains a majority share (51% in 2013), business units (BUs) are increasingly guiding technology purchases at Asia Pacific organisations with 40% of tech purchases being business-led in 2013, compared with 34% in 2012. Only 26% of purchases by the tech management organisation were made without significant business input in 2013, compared with 32% in 2012.

Instead of being reactive, Forrester recommends that CIOs start digitally disrupting their own operations since new digital capabilities often mean that there are better ways to deliver an outcome. CIOs that are equipped to exploit digital technologies will be able to both create new sources of value for customers and increase operational agility in service of customers. 

“The signs of digital disruption in Asia Pacific span countries and industries, but the pioneers are usually entrepreneurial start-ups without legacy to hold them back,” says Dane Anderson, Forrester Research Vice-President, Region Manager and Research Director, Asia Pacific.

Anderson and Sheedy will provide more in-depth analysis at Forrester’s upcoming series of Asia Pacific Summits for CIOs:

August 14, 2014, Sydney, Australia
August 19, 2014, Singapore
August 21, 2014, Mumbai, India