Companies worldwide are implementing their digital transformation strategy as a way to survive and thrive in response to the global COVID-19 pandemic.
In the ninth of 10 episodes, Ray Wang, CEO of Constellation Research, and Hari Candadai, Global VP at Rimini Street, discuss how the global pandemic and resulting macroecomomic trends impact IT investment and #digitaltransformation.
Per Wang, we're seeing more strategic use of CIOs, probably the most helpful thing coming out of the pandemic. The spectrum of technology investments is broad. Companies fighting to survive are focusing on cost reduction, others are revamping/rethinking, building new channels/capabilities. Market leaders are doubling down with IT investments because they know they are taking market share.
► WATCH DIGITAL TRANSFORMATION EPISODE 10: [ Ссылка ]
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► RIMINI STREET WEBSITE
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► RIMINI STREET: WHAT WE DO (IN 30 SECONDS)
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► REDIRECT SUPPORT FUNDS TO STRATEGIC INITIATIVES:
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► READ GARTNER REPORT: REDUCE LEGACY SOFTWARE COSTS
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TRANSCRIPT
Digital Transformation: The Global Pandemic Impact on IT Technology Investments | Episode 9
Hari Candadai:
We are months into the COVID situation now. How are you seeing IT organizations adapting to changes, and what can we learn?
Ray Wang:
Initially, the IT leaders had newfound fame. The CEOs finally knew who these folks were. "Where's our IT guy? We need help." They became famous suddenly, "Our IT person saved the day." We're back to the lull, but the good news is IT now has a seat at the table. Before it was, "Who's that person in the basement? What's going on?" That’s completely changed. We're seeing more strategic use of CIOs and IT leaders. Now we know the tech view of the decision; that's the most helpful thing coming of it.
Before COVID, some industries were a bit ahead; their CTOs and digital officers were advanced. They had CIOs doing more than just infrastructure; they were focusing on innovation, intelligence, areas around integration between systems. They weren't just data center or laptop people. We've moved out of that. That's good news.
Traditional industries like financial services have taken a big hit. They've had to do everything contactless, like retail, hospitality, travel. Such companies have had to revamp/rethink everything.
Hari Candadai:
How have the CIOs' IT investment priorities changed with so much more to do? Is there any framework/guide to help them prioritize where precious IT dollars go today?
Ray Wang:
They've gone from shotgun ruthlessness to surgical precision, looking at how to reduce complexity in systems. It’s turned out to be harder than it sounds. They're trying to simplify environments and reduce friction where they can. We're seeing this continue.
Hari Candadai:
You mentioned many companies are in different stages depending on the industry: Some in survival mode, others past that, now stabilizing operations; some thriving, looking at new growth opportunities/investment areas. Are those stages also influencing where IT investments/priorities need to be made?
Ray Wang:
It’s important to think about the spectrum. Companies trying to survive didn't have digital business models/channels. They’re fighting for their lives; here, cost optimization is so important, whether it's FTEs, number of stores, or other costs. They're going after that pretty hard.
There’s a group that figured out survival in this environment. They're finding out where to make those investments. They've pared down their costs, renegotiated contracts. They've thought about new business models, reconnected with customers. That group is important because they're the ones buying technology, and they need help.
The fast followers group, about 15% of customers, started projects but never completed them because there was no urgency. Now they’ve gone into turbo mode.
The last group is market leaders. They were transforming already, now sitting back and doubling down where they can as they're taking market share. They're winning in this environment, and they’re operating very differently with their priorities.
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R “Ray” Wang is the Principal Analyst, Founder, and Chairman of Silicon Valley-based Constellation Research, Inc. Ray is the co-host and co-founder of the widely watched #DisrupTV, a weekly enterprise tech and leadership webcast. He is the author of the business strategy and technology blog “A Software Insider’s Point of View,” as well as a best-selling book, Disrupting Digital Business.
