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S P O N S O R E D B Y :
Plan to change, change the plan:
Technology adoption and corporate planning in Asia
An Economist Intelligence Unit report
1© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
Contents
Preface2
Executive summary 3
Introduction5
How firms make technology adoption decisions  6
How technology affects business planning and decision-making 10
Conclusion12
Appendix: Survey results 13
2 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
Preface
Plan to change, change the plan: Technology
adoption and corporate planning in Asia is an
Economist Intelligence Unit (EIU) report,
commissioned by SAP. The EIU conducted the
survey and interviews independently and wrote
the report. The findings and views expressed here
are those of the EIU alone.
This report is one in a series of three—the others,
The potential and the reality and The new planning
conversation, are based on the same survey and
additional expert insights.
Ross O’Brien was the author of the report and
Sudhir Vadaketh was the editor. Tan Kane Juan
was responsible for design and layout.
We would like to thank the following interviewees
for their time and insights (listed alphabetically
by organisation):
Shawn Vadnais, regional services director, DSI
Ron Fons, global head, financial services
industries, Huawei
Arina Campbell-Pitt, senior IT executive, Li 
Fung
Peter Bullock, partner and head of Asian
technology practice, Pinsent Masons
March 2013
3© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
Executive
summary
Flexibility remains of vital importance to business
success, particularly in Asia where markets
are growing rapidly and companies are under
pressure to deliver both top-and-bottom-line
growth. Strategic planning has become ever
more critical and the need for speed in decision-
making is increasing.
Given the constant demand for “plannable”
results and the need for nimble responses to
changing market dynamics, how do senior
decision-makers decide on technological
changes? Which stakeholders most influence
technology adoption decisions? In turn, what
impact do these new technologies have on
business planning processes? This report, based
on a survey of over 350 C-level executives in Asia,
attempts to answer these questions.
Among the key findings of this report are the
following:
l For technology adoption decisions, firms
in Asia incorporate the views of many senior
executives, with the CEO as the ultimate
decision-maker. Asian firms consider a number
of voices in the technology planning process:
a majority of respondents indicated that at
least two senior executives, usually the CEO and
the CIO, are critical influences in technology
adoption. Moreover, one-third of respondents
indicated that four or more executives have
important roles. Despite what appears to be an
inclusive process, however, more than 60% of
respondents said that the CEO is the ultimate
decision-maker in technology decisions.
l IT “consumerisation” has made technology
crucial to relationships with employees and
customers, and these external stakeholders
have become influential in decisions about
technology. The availability of relatively
sophisticated technology to consumers is
influencing the way workers use technology and
increasing their expectations of the technology’s
utility, both on and off the job. Customers’ and
employees’ personal technology choices must
be accommodated by the firms they work for
and interact with. Senior executives are thus
exploring and requiring the same flexibility
from the technologies they invest in. Almost
two-thirds of respondents said customers have
an important influence on their technology
decisions in Asia (more than one-fifth of them
believe their influence is “great”). Similarly,
more than half believe the same of employees
and business partners. Harnessing insights from
increasing amounts of customer data and social
network-delivered information (among other
sources) requires a constant evaluation of new
technology capabilities.
4 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
l Technology and a closer alignment between
C-suite functions are creating a positive
feedback loop between technology adoption
decisions and the business planning process.
While external stakeholders are exerting a
greater influence on technology adoption
decisions, the technology being adopted today is
allowing business planners to better incorporate
the views of these stakeholders. This positive
feedback loop is reinforced by the closer strategic
alignment between the CEO and the CIO.
l Leading-edge technology adoption is
accelerating decision-making processes,
prompting changes to organisational
mindsets. Roughly half of all respondents say
that new technologies—with the exception of
cloud computing—have a positive benefit on
collaborative decision-making. A similarly high
percentage say there is a link between their
technology choices and the pressure placed
on managers to make decisions more quickly.
Technology-driven collaboration only works,
however, if the firm’s management enables all its
decision-makers to access and leverage insights
enabled by the technology.
l Successful firms recognise the need to set
and monitor established plans as well as the
need for flexibility to adjust as required to
address the market. Given the multitude of
“non-IT” internal and external influences that
are becoming more influential and opinionated
in their recommendations on technology
adoption, firms in Asia should not adopt a single
business practice or set of policies with regard
to technology, but must adopt one that can be
perpetually flexible.
About the survey:
The EIU surveyed 351 Asia-based C-level
executives. CEOs and CFOs together make up
45% of the respondents; the rest are CIOs, COOs,
CMOs, CHROs and other C-level executives. In
terms of size, 38% work at companies whose
global headcount exceeds 1,000 people. Some
28% of respondents work at firms whose global
annual revenues exceed US$1bn.
The respondents work in a broad mix of
industries—15% in manufacturing; 13% in
financial services; 9% in the energy and natural
resources sector; 9% in construction and real
estate; 9% in the healthcare, pharmaceuticals
and biotechnology sector; and the remainder
in IT and technology; professional services;
chemicals; consumer goods; transportation,
travel and tourism; retailing; automotive;
logistics and distribution; telecoms; and some
other smaller sectors.
5© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
Many companies are expecting Asia to deliver
more of their global profits, but with the
American and European markets remaining in
the doldrums few companies have the resources
to invest fully to achieve that growth. Hence
senior executives are faced with the need to
produce top-line revenue growth that is in line
with economic growth rates in the region while
at the same time improving margins. Strategic
planning has become ever more critical and the
need for speed in decision-making is increasing.
Executives are recognising the potential for
technology to help in the planning process, both
in terms of quality and speed.
Several new technologies in the market—
including cloud computing, data capture and
analytics, enterprise mobility, software as a
service (SaaS), IT security and social media—
have the potential to radically change the way
corporations conduct their strategic planning
exercises. They can also heavily influence
decision-making processes within a firm.
For instance, new technologies can allow
firms to implement strategy in a faster, more
coordinated fashion. They can also harness big
data for insight, and allow more comprehensive
intelligence gathering from additional
stakeholders—most importantly customers,
employees and business partners—via mobile
and social media channels. Thus, technology
adoption decisions can be part of the actual
process of strategic planning, while the
technology adopted can then enable further
precision in business planning.
However, in order for firms to integrate
technology seamlessly—and for that technology
to be properly utilised throughout the
organisation to aid planning and decision-
making—they have to overcome several
roadblocks. These include competing technology
visions within the C-suite; corporate structures
that hinder the more collaborative and bottom-
up information flows that technologies promote;
and the persistence of legacy systems.
This paper examines these two inter-related
trends: how firms in Asia make decisions
on technology adoption; and how those
technologies subsequently affect strategic
planning and decision-making processes.
Introduction
6 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
As discussed in the other reports in this series,
senior decision-makers are both more aware of
the need to engage with multiple stakeholders,
as well as other members of the C-suite, in order
to accurately and consistently incorporate
technology adoption decisions into business
strategy.1
Yet, while a sizeable number of our
respondents indicated that as many as four
executives weigh in on the process, the ultimate
decision-maker is usually the CEO (see chart A).
The clear implication is that technology decisions
are, ultimately, taken on board by a business
leader—which brings those decisions closer to
the overall strategy process almost by default.
This, in turn, also helps define the CIO as a more
strategic team member; the fact that technology
solutions available to firms are partly selected
to achieve bottom-line objectives actually helps
reinforce this role.
“The CIO is inclined to use tools like cloud
computing, software as a service and outsourcing
first from a ‘more for less’ perspective,” says
Peter Bullock, partner and head of the Asian
technology practice at Pinsent Masons, a law
firm. “The efficiency gains they enable allow
the role by default to become a more business-
centric, strategic one.” New technologies—and
the way technology is adopted—are helping to
bring the CEO and the CIO in closer strategic
alignment. This creates a positive feedback loop
between technology adoption decisions and the
business planning process.
How firms make technology adoption
decisions1
1
This report is one in a
series of three—the others,
The potential and the reality
and The new planning
conversation, are based
on the same survey and
additional expert insights.
7© The Economist Intelligence Unit Limited 2013
Plan 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 functional
roles have on technology adoption decisions?
Source: Economist Intelligence Unit survey
3
2
19
26
61
36
40
56
65
27
49
49
20
8
11
12
9
5
1
1
Relevant
business head
IT specialist
CFO
CIO/CTO
CEO
Ultimate decision maker
Strong influence
Some influence
No influence
2
But business leaders also look outside their inner
circle for input. Almost two-thirds of respondents
say customers have an important influence
on a firm’s technology decisions in Asia (more
than one-fifth of them believe their influence is
“great”). Similarly, more than half believe the
same of employees and business partners (see
chart B).
Not surprisingly, external parties far from the
core of the business—analysts, consultants and
government regulators—are not seen to have
particular influence, although in these times of
heightened sensitivities around governance, the
CFO and CIO respondents did indicate a slightly
greater willingness to seek input from regulators.
Meanwhile, a majority of respondents say they
gather insights from all these stakeholders
through formal attempts, either via regularly
scheduled sessions or business intelligence
systems. This has two powerful implications for
the business planning process.
The first is that most technology adoption
decisions have a huge impact on the way
firms engage with their customers and
employees, partly because of the rapid uptake
of smartphones in Asia. The availability of
technology to consumers is influencing the way
workers use technology and increasing their
expectations of the technology’s utility, both
inside and outside of the workplace. This “IT
consumerisation” means that customers’ and
employees’ personal technology choices must be
accommodated by the firm’s own systems. Senior
executives are thus exploring and requiring
the same flexibility from the technologies they
invest in. As a result of all this, external parties
must become ongoing components of the firm’s
technology adoption and decision-making
processes.
Second, given that firms need speed and agility
to succeed in a fast-growing Asia, stakeholder
input must be gathered and assimilated quickly.
Senior executives must harness the potential of
those technology tools that help them achieve
this. Survey respondents see two technology
solutions— data capture and analytics, and IT
security—as important in this process. Of the
two, data capture and analytics is seen as being
of critical value in alleviating business challenges
8 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
related to customers, such as the lack of
customer data, and in driving customer-centric
business initiatives. The link between customer
input and the strategic planning process is clear:
the more “formal” the capabilities for capturing
and assessing the needs of customers, the better
it is for business planning at all levels.
This closer relationship between a firm and its
customers and employees further reinforces the
feedback loop between technology adoption
decisions and the business planning process, as
these new technologies allow decision-makers
to more effectively take on board the views of
external stakeholders. In other words, external
stakeholders are exerting a greater influence on
technology adoption decisions; and those same
technologies then allow business planners to
better understand the external stakeholders’
views.
(% respondents)
Chart B: What sources of information have the greatest influence on your
technology adoption decisions?
Source: Economist Intelligence Unit survey
Customers
Employees
Business partners
Government/regulators
Suppliers
Professional service providers
Industry peers/ communities
Analysts
External consultants
Google/ search engines
21 42 27 8 3
Great Influence 1 2 3 4 No influence 5
12 41 37 7 3
12 40 32 9 7
13 30 33 12 11
9 31 41 14 6
9 35 42 12 3
7 34 44 12 4
5 26 36 20 13
5 23 39 26 7
4 22 39 26 9
This evolving dynamic between external parties
and a firm’s technology adoption and decision-
making processes can be observed in the financial
services industry. Compared to the survey
average, financial service industry respondents
indicate that customers and employees are
more influential in their technology adoption
decisions. “BYOD (Bring your own device) creates
tremendous variability in the devices, media
types, and locations which serves customers,”
says Ron Fons, global head of financial services
industries at Huawei, an information and
communications technology firm. He sees this
trend as having the ability to “flatten the silos” of
technology that service these channels, in large
part because mobility increases the reach—and
the expectations—of the customer.
The challenge for banks, he says, is whether they
can pack disparate applications together into
an “omni-channel”, where the end user gets
the same look and feel when he or she carries
a transaction from the laptop to the mobile
device to the service counter—as opposed to
“multichannel”, where the experience differs
from one channel to the next.
“Technology tends to be tied to a specific
channel, but customers don’t think of themselves
9© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
as multichannel users,” says Mr Fons. To achieve
a coherent omni-channel requires consideration
of design and process issues, not merely the
adoption of new technology applications. In
addition, this must be matched with increased
security. “Security concerns increase with a
broadening of contact points outside the firm,”
says Mr Fons.
10 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
How technology affects business
planning and decision-making2
specifically, are highlighted as tools that have
forced managers to respond more quickly, or
make decisions in a collaborative environment
faster. Over half of the survey respondents
indicated that data capture and analytics enabled
this (see chart C).
(% respondents)
Chart C: What impact have the following technologies had on decision-making
processes within your organisation?
Source: Economist Intelligence Unit survey
21
24
26
27
32
33
28
42
44
44
44
50
31
42
43
42
50
52
44
27
24
22
13
15
Cloud computing
Social media technologies
Enterprise mobility
Software as a service
IT security
Data capture and analytics
Moved decision-making capabilities down
the corporate hierarchy; front-line empowerment
Increased pressure on managers to respond instantly
Made collaborative decision-making faster
Have yet to implement
Regardless of where their business is based
or how large an organisation they run,
survey respondents definitely feel that the
new technologies have accelerated planning
processes—or, at a minimum, put pressure on
decision-makers to speed them up. Enterprise
mobility and data capture and analytics,
11© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
It is in this last point—and indeed, in the word
“collaborative”—that an important implication is
revealed. While the Asian business environment
requires and rewards speedy response time,
businesses can only respond quickly and
effectively if knowledge, responsibility and
capability flow down through the organisation.
This creates a chicken-and-egg conundrum: how
can business leaders create efficient decision-
making processes based on technologies using
more precise data if they do not have this data in
the first place? The answer may lie in the ability of
firms to experiment quickly and cheaply with new
technology tools and solutions, and to measure
their impact on internal and external corporate
processes.
As with many new enterprise technologies,
mobility is one of the first channels where this
informal RD process starts: “Decision-makers
within firms today already have multiple mobile
devices on them, and mobile device proliferation
dramatically increases the data channels to
which they have access,” says Shawn Vadnais,
regional services director for Asia Pacific at DSI,
an enterprise mobility solutions firm. “This gives
them increased visibility onto new processes—
and their response time also increases quickly.”
One specific way in which Asian firms are
putting this experimentation to work in creating
concrete business value is in their usage of utility
computing. More than 40% of respondents say
SaaS facilitates collaborative processes and
reduces decision-making times. After IT security
and data capture and analytics, SaaS has the
highest adoption rate of any new technology in
our survey. Only 24% of respondents have not
yet implemented SaaS at all, and nearly half
have done so specifically in order to expedite the
collaboration process.
“The ability for smaller teams to respond quickly
to many different requests is possible because
there are so many pay-as-you-go tools available
for trialling, testing and modifying solutions,”
observes Arina Campbell-Pitt, a senior IT
executive at Li  Fung, a global supplier. This
approach is like a buffet: effective technology
service provision offered to the greatest number
of knowledgeable, empowered, enterprise users
possible so that they can help themselves. This
not only speeds up adoption and enhances
efficiencies; it also distributes the burden
of technology innovation throughout the
organisation. “The only way to respond to an
ever-increasing number of technology requests is
to ensure that the buffet table is always as full as
possible, while getting end users to weigh in on
what, and how much, they are consuming,” says
Ms Campbell-Pitt.
The tools that firms adopt, and the way they
integrate those tools into their business
planning practices, are naturally dependent on
their operating environments. Respondents in
information-intensive sectors, such as financial
services and healthcare, indicate that they
are much more likely to bring the technology
planning team into the business strategy process
early, usually at initial project commissioning.
Finance respondents believe that early
involvement of technology planners is critical
for process redesign, and for projects involving
customer interactions.
These conditions, particularly in fast-growing
Asia, change rapidly, as do the capabilities and
competencies of the firms themselves. The pace
with which enabling technology flows down to
line managers and even front-line employees is
due to a confluence of trends changing the way
enterprise technology is accessed. The cloud
model, for instance, allows for “pay-as-you-go”
usage and the ability for users to access, modify
and deploy new applications without necessarily
having technology skills. Furthermore, personal
technology, particularly mobility, is influencing
the way workers use technology, and increasing
their expectations of the technology’s utility. The
corollary of that is that firms should not adopt
a single business practice or set of policies with
regards to technology, but must adopt one that
can be perpetually flexible.
12 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
C-suite executives in Asia have found that
investments in new technologies such as data
capture and analytics can accelerate the planning
process. This in turn increases the ability of
decision-makers within the organisation to
inform, define, communicate, react to, and
achieve their strategic objectives.
Therefore, to maximise this positive effect—and
ideally tighten up the cycles between planning
and execution—technology investments must
be an integral part of overall business strategy.
This only works, however, if management enables
decision-makers throughout the organisational
hierarchy to access and leverage insights enabled
by these technologies.
Similarly, collaboration is enhanced by these new
technologies, potentially increasing productivity
and idea generation across the organisation.
But in order to realise this, a key part of the
technology adoption process must be a change or
reinforcement of this mindset to inform, enable,
and empower decision-makers.
The larger implication here is not that a firm’s
decision-makers have to come from information-
centric industries in order to make the right
technology decisions that help quicken and
smarten their overall business planning process.
Rather, all executives running businesses in Asia
must understand what early adopters perhaps
instinctively grasp: that responding to new
technologies in a fast and flexible way, and in a
way that considers their impact on the business
from an early stage in the planning process,
will likely cause them to base their technology
decisions around business-critical functions such
as getting more insight out of customer data, or
creating more efficient workflows.
Technology, in turn, builds more robust and more
nimble decision-making processes, because
these tools help executives do two things more
powerfully: gather insight from increasing points
of data, and empower more team members to
execute business plans based on the implications
of those insights. Plans based on the notion that
plans must change will be the most successful in
Asia’s complex, fast-running markets.
Conclusion
13© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
Appendix:
Survey results
Note: Percentages may not total 100 due to rounding or the ability of respondents to
choose multiple responses
In which country are you personally located?
(% respondents)
2
3
3
4
5
7
7
7
8
11
11
16
18
Taiwan
Vietnam
Thailand
Indonesia
Philippines
South Korea
Malaysia
Japan
Hong Kong
Singapore
China
Australia
India
14 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
What is your primary industry?
(% respondents)
How many people work at your organisation?
(% respondents)
1
1
1
1
1
1
2
2
3
4
5
6
8
8
9
9
9
13
15
Aerospace and defence
Telecoms
Government/Public sector
Logistics and distribution
Education
Agriculture and agribusiness
Entertainment, media and publishing
Automotive
Retailing
Transportation, travel and tourism
Consumer goods
Chemicals
Professional services
IT and technology
Healthcare, pharmaceuticals and biotechnology
Energy and natural resources
Construction and real estate
Financial services
Manufacturing
11
27
14
12
12
8
9
6
Over 10,000
1,001-10,000
501-1,000
201-500
101-200
51-100
11-50
1-10
15© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
What 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)
7
3
18
25
47
$10bn or more
$5bn to $10bn
$1bn to $5bn
$500m to $1bn
$500m or less
0
8
9
11
12
15
19
26
Other C-level executive
CHRO/HR director, or equivalent
CIO/Technology director, or equivalent
CMO/Marketing director, or equivalent
COO/Head of operations, or equivalent
CFO/Treasurer/Comptroller, or equivalent
CEO/President/Managing director, or equivalent
17
30
34
35
38
41
41
49
53
83
70
66
65
62
59
59
51
47
Labour unrest
Infrastructure deficits
Intellectual property theft
Property prices/ rents
Legal/regulatory uncertainty
Working capital/getting paid
Insufficient market/customer data
Rising labour costs
Staff shortages
16 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
2. 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 technologies
are being adopted to address the challenge. Please tick all that apply.
(% respondents)
12
46
51
56
71
72
72
74
82
88
54
49
44
29
28
28
26
18
Other, please specify
Reducing capital expenditure
Building new production facilities
Increasing local content in product/design/RD processes
Revising/creating new customer segments
Creating new products/services
Reducing operational costs
Entering new markets
Improving profitability
10
6
11
15
22
16
17
15
22
23
25
26
29
34
36
37
42
44
18
11
17
17
26
23
21
19
26
15
9
18
20
27
20
23
22
28
12
7
18
19
16
15
18
18
22
15
15
11
17
15
27
26
28
17
Staff shortages
Insufficient market/
customer data
Building new
production facilities
Increasing local
content in product
/design/RD processes
Reducing
operational costs
Entering new markets
Creating new
products/services
Revising/creating new
customer segments
Improving profitability
Data capture and analytics
Enterprise mobility
Software as a service
Enhancing IT security
Social media technologies
Cloud computing
17© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
0
4
8
9
6
5
11
15
10
8
11
11
13
14
17
20
22
6
7
10
8
6
13
17
18
5
7
7
10
8
12
17
16
6
24
7
9
11
10
11
15
5
8
5
5
8
6
10
10
Labour unrest
Intellectual property theft
Property prices/ rents
Infrastructure deficits
Legal/regulatory uncertainty
Working capital/getting paid
Reducing capital expenditure
Rising labour costs
Data capture and analytics
Enterprise mobility
Software as a service
Enhancing IT security
Social media technologies
Cloud computing
4. Please rate the following technology
adoption issues in terms of their impact on
your business strategy in Asia. Rate on a scale
of 1 to 5, where 1 = Critical impact and 5 = No
impact. (% respondents)
12
11
15
16
25
26
21
31
38
36
37
41
32
35
28
27
24
19
16
15
13
14
10
9
19
9
6
7
4
5
Cloud computing
Social media technologies
Software as a service
Enterprise mobility
IT security
Data capture and analytics
Critical Impact 1 2 3 4 No impact 5
18 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
5. 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 the
organisation? Rate on a scale of 1 to 5, where 1 = Strong positive impact and 5 = Strong negative
impact. (% respondents)
Data capture and analytics (managing big data)
IT security
Software as a service (or other IT utility usage models)
Enterprise mobility
Social media technologies
Cloud computing
47 22 16 6 9
39 40 11 7 3
33 32 15 10 9
33 27 19 10 11
21 42 17 11 9
9 37 15 14 25
Fully adopted; in management and refinement stage
In process of adopting
Evaluating implementation options
Considering need for adoption
No action taken
13
10
13
14
21
20
26
36
30
34
39
39
21
27
31
28
24
29
2
7
4
4
1
4
1
1
1
1
1
0
38
21
22
19
14
8
Cloud computing
Social media technologies
Enterprise mobility
Software as a service
Data capture and analytics
IT security
Strong positive impact 1 2 3 4 Strong negative impact 5 Have yet to implement
19© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
7. 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 in
terms of technology adoption?(% respondents)
9. Which statement best describes the role of your CIO in decisions regarding business strategy?
(% respondents)
17
22
61
Budgetary considerations
are more important
Strategic objectives
are more important
Strategic and budgetary
considerations are
equally important
1
16
31
52
Don’t know
We are lagging
our industry peers
We are an
industry leader
We are on par with
the industry average
1
8
25
33
33
CIO takes direction on technology
implementation primarily from the CFO
CIO takes direction on technology
implementation primarily from the CEO
CIO makes technology decisions based
primarily on the firm’s operational
requirements, and/or budgetary parameters
CIO is actively involved in the planning
stages of all firm-wide strategic initiatives,
and makes technology decisions based
primarily on the firm’s strategic direction
20 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
10. 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 of
technology? (% respondents)
12. Within your company, what degree of influence do the following functional roles have on
technology adoption decisions? (% respondents)
23
23
27
27
CIO’s role is purely strategic:
interacting with other CXOs
and communicating firm’s
overall strategy with
direct report
CIO is actively involved in
the day-to-day operations
of the IT department
CIO is involved with any
software or IT service decision
CIO is involved with big
enterprise IT decisions
but not individual software
or IT service discussions
28 35
36
9
12
20
23
36
CEO relies on the
advice of the CFO
CEO is involved in evaluating
options based on budgetary
constraints.
CEO relies on the
advice of the CIO
CEO is involved in evaluating
options based on operating
needs of the company
CEO is actively involved
in evaluating options based
on strategic objectives
3
2
19
26
61
36
40
56
65
27
49
49
20
8
11
12
9
5
1
1
Relevant
business head
IT specialist
CFO
CIO/CTO
CEO
Ultimate decision maker
Strong influence
Some influence
No influence
2
21© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
13. What sources of information have the greatest influence on your technology adoption
decisions? 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)
Customers
Employees
Business partners
Government/regulators
Suppliers
Professional service providers
Industry peers/ communities
Analysts
External consultants
Google/ search engines
21 42 27 8 3
Great Influence 1 2 3 4 No influence 5
12 41 37 7 3
12 40 32 9 7
13 30 33 12 11
9 31 41 14 6
9 35 42 12 3
7 34 44 12 4
5 26 36 20 13
5 23 39 26 7
4 22 39 26 9
1
34
34
38
42
45
51
57
Other, please specify
Commissioned user experience surveys
Social media
Trendwatching/market intelligence gathering
Point-of-sale/touchpoint feedback collection
Informal methods (eg, conversations)
Business intelligence/enterprise planning systems
Regularly scheduled discussions
60
1
22 © The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
15. Which of the following technology adoption issues are of most concern to your external
stakeholders? Select up to three. (% respondents)
16. What impact have the following technologies...
(% respondents)
22
27
36
46
47
56
Social media technologies
Cloud computing
Software as a service
(or other IT utility usage models)
Enterprise mobility
IT security
Data capture and analytics
(managing big data)
36 48 60
36
46
47
56
55
21
24
26
27
32
33
28
42
44
44
44
50
31
42
43
42
50
52
44
27
24
22
13
15
Cloud computing
Social media technologies
Enterprise mobility
Software as a service
IT security
Data capture and analytics
Moved decision-making capabilities down
the corporate hierarchy; front-line empowerment
Increased pressure on managers to respond instantly
Made collaborative decision-making faster
Have yet to implement
23© The Economist Intelligence Unit Limited 2013
Plan to change, change the plan: Technology adoption and corporate planning in Asia
17. Which of the following statements best describes the relationship between technology trends
and ongoing strategic planning? (% respondents)
18. At what stage of the following types of specific business strategy initiatives is the technology
planning 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)
7
15
35
43
Our technology decisions
are reactive to external pressures
Technology decisions are
largely financially driven
and unconnected to core
business strategy
Technology adoption decisions
are evaluated concurrently with
larger business strategy decisions
Technology decisions are
formulated as a result of our
overall business strategy process
Initial project commissioning
Project specification and design
After project kick-off
32
38
41
46
40
35
39
38
27
27
20
16
Revising key enterprise
performance metrics
New product design
Addressing/refining
customer experience
Process redesign or
efficiency drive
Senior management believes the ability
to adopt leading-edge IT solutions is
critical to business performance
Our firm’s ability to adopt business-relevant technology
has provided us with competitive advantage
Senior management can clearly see
significant trends on the IT horizon
We are usually an early adopter of the IT
solutions that matter most to our firm
Senior management has the ability to
determine which new IT trends will have
significant impact on our business
32 40 23 31
30 33 25 9 3
27 42 21 9 1
23 28 30 15 5
22 29 28 9 1
Strongly Agree 1 2 3 4 Strongly disagree 5
While every effort has been taken to verify the accuracy
of this information, neither The Economist Intelligence
Unit Ltd. nor the sponsor of this report can accept any
responsibility or liability for reliance by any person on
this white paper or any of the information, opinions or
conclusions set out in this white paper.
LONDON
20 Cabot Square
London
E14 4QW
United Kingdom
Tel: (44.20) 7576 8000
Fax: (44.20) 7576 8500
E-mail: london@eiu.com
NEW YORK
750 Third Avenue
5th Floor
New York, NY 10017, US
Tel: (1.212) 554 0600
Fax: (1.212) 586 0248
E-mail: newyork@eiu.com
HONG KONG
6001, Central Plaza
18 Harbour Road
Wanchai
Hong Kong
Tel: (852) 2585 3888
Fax: (852) 2802 7638
E-mail: hongkong@eiu.com
GENEVA
Rue de l’AthĂ©nĂ©e 32
1206 Geneva
Switzerland
Tel: (41) 22 566 2470
Fax: (41) 22 346 9347
E-mail: geneva@eiu.com

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Technology adoption and corporate planning in Asia

  • 1. S P O N S O R E D B Y : Plan to change, change the plan: Technology adoption and corporate planning in Asia An Economist Intelligence Unit report
  • 2. 1© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia Contents Preface2 Executive summary 3 Introduction5 How firms make technology adoption decisions 6 How technology affects business planning and decision-making 10 Conclusion12 Appendix: Survey results 13
  • 3. 2 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia Preface Plan to change, change the plan: Technology adoption and corporate planning in Asia is an Economist Intelligence Unit (EIU) report, commissioned by SAP. The EIU conducted the survey and interviews independently and wrote the report. The findings and views expressed here are those of the EIU alone. This report is one in a series of three—the others, The potential and the reality and The new planning conversation, are based on the same survey and additional expert insights. Ross O’Brien was the author of the report and Sudhir Vadaketh was the editor. Tan Kane Juan was responsible for design and layout. We would like to thank the following interviewees for their time and insights (listed alphabetically by organisation): Shawn Vadnais, regional services director, DSI Ron Fons, global head, financial services industries, Huawei Arina Campbell-Pitt, senior IT executive, Li Fung Peter Bullock, partner and head of Asian technology practice, Pinsent Masons March 2013
  • 4. 3© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia Executive summary Flexibility remains of vital importance to business success, particularly in Asia where markets are growing rapidly and companies are under pressure to deliver both top-and-bottom-line growth. Strategic planning has become ever more critical and the need for speed in decision- making is increasing. Given the constant demand for “plannable” results and the need for nimble responses to changing market dynamics, how do senior decision-makers decide on technological changes? Which stakeholders most influence technology adoption decisions? In turn, what impact do these new technologies have on business planning processes? This report, based on a survey of over 350 C-level executives in Asia, attempts to answer these questions. Among the key findings of this report are the following: l For technology adoption decisions, firms in Asia incorporate the views of many senior executives, with the CEO as the ultimate decision-maker. Asian firms consider a number of voices in the technology planning process: a majority of respondents indicated that at least two senior executives, usually the CEO and the CIO, are critical influences in technology adoption. Moreover, one-third of respondents indicated that four or more executives have important roles. Despite what appears to be an inclusive process, however, more than 60% of respondents said that the CEO is the ultimate decision-maker in technology decisions. l IT “consumerisation” has made technology crucial to relationships with employees and customers, and these external stakeholders have become influential in decisions about technology. The availability of relatively sophisticated technology to consumers is influencing the way workers use technology and increasing their expectations of the technology’s utility, both on and off the job. Customers’ and employees’ personal technology choices must be accommodated by the firms they work for and interact with. Senior executives are thus exploring and requiring the same flexibility from the technologies they invest in. Almost two-thirds of respondents said customers have an important influence on their technology decisions in Asia (more than one-fifth of them believe their influence is “great”). Similarly, more than half believe the same of employees and business partners. Harnessing insights from increasing amounts of customer data and social network-delivered information (among other sources) requires a constant evaluation of new technology capabilities.
  • 5. 4 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia l Technology and a closer alignment between C-suite functions are creating a positive feedback loop between technology adoption decisions and the business planning process. While external stakeholders are exerting a greater influence on technology adoption decisions, the technology being adopted today is allowing business planners to better incorporate the views of these stakeholders. This positive feedback loop is reinforced by the closer strategic alignment between the CEO and the CIO. l Leading-edge technology adoption is accelerating decision-making processes, prompting changes to organisational mindsets. Roughly half of all respondents say that new technologies—with the exception of cloud computing—have a positive benefit on collaborative decision-making. A similarly high percentage say there is a link between their technology choices and the pressure placed on managers to make decisions more quickly. Technology-driven collaboration only works, however, if the firm’s management enables all its decision-makers to access and leverage insights enabled by the technology. l Successful firms recognise the need to set and monitor established plans as well as the need for flexibility to adjust as required to address the market. Given the multitude of “non-IT” internal and external influences that are becoming more influential and opinionated in their recommendations on technology adoption, firms in Asia should not adopt a single business practice or set of policies with regard to technology, but must adopt one that can be perpetually flexible. About the survey: The EIU surveyed 351 Asia-based C-level executives. CEOs and CFOs together make up 45% of the respondents; the rest are CIOs, COOs, CMOs, CHROs and other C-level executives. In terms of size, 38% work at companies whose global headcount exceeds 1,000 people. Some 28% of respondents work at firms whose global annual revenues exceed US$1bn. The respondents work in a broad mix of industries—15% in manufacturing; 13% in financial services; 9% in the energy and natural resources sector; 9% in construction and real estate; 9% in the healthcare, pharmaceuticals and biotechnology sector; and the remainder in IT and technology; professional services; chemicals; consumer goods; transportation, travel and tourism; retailing; automotive; logistics and distribution; telecoms; and some other smaller sectors.
  • 6. 5© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia Many companies are expecting Asia to deliver more of their global profits, but with the American and European markets remaining in the doldrums few companies have the resources to invest fully to achieve that growth. Hence senior executives are faced with the need to produce top-line revenue growth that is in line with economic growth rates in the region while at the same time improving margins. Strategic planning has become ever more critical and the need for speed in decision-making is increasing. Executives are recognising the potential for technology to help in the planning process, both in terms of quality and speed. Several new technologies in the market— including cloud computing, data capture and analytics, enterprise mobility, software as a service (SaaS), IT security and social media— have the potential to radically change the way corporations conduct their strategic planning exercises. They can also heavily influence decision-making processes within a firm. For instance, new technologies can allow firms to implement strategy in a faster, more coordinated fashion. They can also harness big data for insight, and allow more comprehensive intelligence gathering from additional stakeholders—most importantly customers, employees and business partners—via mobile and social media channels. Thus, technology adoption decisions can be part of the actual process of strategic planning, while the technology adopted can then enable further precision in business planning. However, in order for firms to integrate technology seamlessly—and for that technology to be properly utilised throughout the organisation to aid planning and decision- making—they have to overcome several roadblocks. These include competing technology visions within the C-suite; corporate structures that hinder the more collaborative and bottom- up information flows that technologies promote; and the persistence of legacy systems. This paper examines these two inter-related trends: how firms in Asia make decisions on technology adoption; and how those technologies subsequently affect strategic planning and decision-making processes. Introduction
  • 7. 6 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia As discussed in the other reports in this series, senior decision-makers are both more aware of the need to engage with multiple stakeholders, as well as other members of the C-suite, in order to accurately and consistently incorporate technology adoption decisions into business strategy.1 Yet, while a sizeable number of our respondents indicated that as many as four executives weigh in on the process, the ultimate decision-maker is usually the CEO (see chart A). The clear implication is that technology decisions are, ultimately, taken on board by a business leader—which brings those decisions closer to the overall strategy process almost by default. This, in turn, also helps define the CIO as a more strategic team member; the fact that technology solutions available to firms are partly selected to achieve bottom-line objectives actually helps reinforce this role. “The CIO is inclined to use tools like cloud computing, software as a service and outsourcing first from a ‘more for less’ perspective,” says Peter Bullock, partner and head of the Asian technology practice at Pinsent Masons, a law firm. “The efficiency gains they enable allow the role by default to become a more business- centric, strategic one.” New technologies—and the way technology is adopted—are helping to bring the CEO and the CIO in closer strategic alignment. This creates a positive feedback loop between technology adoption decisions and the business planning process. How firms make technology adoption decisions1 1 This report is one in a series of three—the others, The potential and the reality and The new planning conversation, are based on the same survey and additional expert insights.
  • 8. 7© The Economist Intelligence Unit Limited 2013 Plan 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 functional roles have on technology adoption decisions? Source: Economist Intelligence Unit survey 3 2 19 26 61 36 40 56 65 27 49 49 20 8 11 12 9 5 1 1 Relevant business head IT specialist CFO CIO/CTO CEO Ultimate decision maker Strong influence Some influence No influence 2 But business leaders also look outside their inner circle for input. Almost two-thirds of respondents say customers have an important influence on a firm’s technology decisions in Asia (more than one-fifth of them believe their influence is “great”). Similarly, more than half believe the same of employees and business partners (see chart B). Not surprisingly, external parties far from the core of the business—analysts, consultants and government regulators—are not seen to have particular influence, although in these times of heightened sensitivities around governance, the CFO and CIO respondents did indicate a slightly greater willingness to seek input from regulators. Meanwhile, a majority of respondents say they gather insights from all these stakeholders through formal attempts, either via regularly scheduled sessions or business intelligence systems. This has two powerful implications for the business planning process. The first is that most technology adoption decisions have a huge impact on the way firms engage with their customers and employees, partly because of the rapid uptake of smartphones in Asia. The availability of technology to consumers is influencing the way workers use technology and increasing their expectations of the technology’s utility, both inside and outside of the workplace. This “IT consumerisation” means that customers’ and employees’ personal technology choices must be accommodated by the firm’s own systems. Senior executives are thus exploring and requiring the same flexibility from the technologies they invest in. As a result of all this, external parties must become ongoing components of the firm’s technology adoption and decision-making processes. Second, given that firms need speed and agility to succeed in a fast-growing Asia, stakeholder input must be gathered and assimilated quickly. Senior executives must harness the potential of those technology tools that help them achieve this. Survey respondents see two technology solutions— data capture and analytics, and IT security—as important in this process. Of the two, data capture and analytics is seen as being of critical value in alleviating business challenges
  • 9. 8 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia related to customers, such as the lack of customer data, and in driving customer-centric business initiatives. The link between customer input and the strategic planning process is clear: the more “formal” the capabilities for capturing and assessing the needs of customers, the better it is for business planning at all levels. This closer relationship between a firm and its customers and employees further reinforces the feedback loop between technology adoption decisions and the business planning process, as these new technologies allow decision-makers to more effectively take on board the views of external stakeholders. In other words, external stakeholders are exerting a greater influence on technology adoption decisions; and those same technologies then allow business planners to better understand the external stakeholders’ views. (% respondents) Chart B: What sources of information have the greatest influence on your technology adoption decisions? Source: Economist Intelligence Unit survey Customers Employees Business partners Government/regulators Suppliers Professional service providers Industry peers/ communities Analysts External consultants Google/ search engines 21 42 27 8 3 Great Influence 1 2 3 4 No influence 5 12 41 37 7 3 12 40 32 9 7 13 30 33 12 11 9 31 41 14 6 9 35 42 12 3 7 34 44 12 4 5 26 36 20 13 5 23 39 26 7 4 22 39 26 9 This evolving dynamic between external parties and a firm’s technology adoption and decision- making processes can be observed in the financial services industry. Compared to the survey average, financial service industry respondents indicate that customers and employees are more influential in their technology adoption decisions. “BYOD (Bring your own device) creates tremendous variability in the devices, media types, and locations which serves customers,” says Ron Fons, global head of financial services industries at Huawei, an information and communications technology firm. He sees this trend as having the ability to “flatten the silos” of technology that service these channels, in large part because mobility increases the reach—and the expectations—of the customer. The challenge for banks, he says, is whether they can pack disparate applications together into an “omni-channel”, where the end user gets the same look and feel when he or she carries a transaction from the laptop to the mobile device to the service counter—as opposed to “multichannel”, where the experience differs from one channel to the next. “Technology tends to be tied to a specific channel, but customers don’t think of themselves
  • 10. 9© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia as multichannel users,” says Mr Fons. To achieve a coherent omni-channel requires consideration of design and process issues, not merely the adoption of new technology applications. In addition, this must be matched with increased security. “Security concerns increase with a broadening of contact points outside the firm,” says Mr Fons.
  • 11. 10 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia How technology affects business planning and decision-making2 specifically, are highlighted as tools that have forced managers to respond more quickly, or make decisions in a collaborative environment faster. Over half of the survey respondents indicated that data capture and analytics enabled this (see chart C). (% respondents) Chart C: What impact have the following technologies had on decision-making processes within your organisation? Source: Economist Intelligence Unit survey 21 24 26 27 32 33 28 42 44 44 44 50 31 42 43 42 50 52 44 27 24 22 13 15 Cloud computing Social media technologies Enterprise mobility Software as a service IT security Data capture and analytics Moved decision-making capabilities down the corporate hierarchy; front-line empowerment Increased pressure on managers to respond instantly Made collaborative decision-making faster Have yet to implement Regardless of where their business is based or how large an organisation they run, survey respondents definitely feel that the new technologies have accelerated planning processes—or, at a minimum, put pressure on decision-makers to speed them up. Enterprise mobility and data capture and analytics,
  • 12. 11© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia It is in this last point—and indeed, in the word “collaborative”—that an important implication is revealed. While the Asian business environment requires and rewards speedy response time, businesses can only respond quickly and effectively if knowledge, responsibility and capability flow down through the organisation. This creates a chicken-and-egg conundrum: how can business leaders create efficient decision- making processes based on technologies using more precise data if they do not have this data in the first place? The answer may lie in the ability of firms to experiment quickly and cheaply with new technology tools and solutions, and to measure their impact on internal and external corporate processes. As with many new enterprise technologies, mobility is one of the first channels where this informal RD process starts: “Decision-makers within firms today already have multiple mobile devices on them, and mobile device proliferation dramatically increases the data channels to which they have access,” says Shawn Vadnais, regional services director for Asia Pacific at DSI, an enterprise mobility solutions firm. “This gives them increased visibility onto new processes— and their response time also increases quickly.” One specific way in which Asian firms are putting this experimentation to work in creating concrete business value is in their usage of utility computing. More than 40% of respondents say SaaS facilitates collaborative processes and reduces decision-making times. After IT security and data capture and analytics, SaaS has the highest adoption rate of any new technology in our survey. Only 24% of respondents have not yet implemented SaaS at all, and nearly half have done so specifically in order to expedite the collaboration process. “The ability for smaller teams to respond quickly to many different requests is possible because there are so many pay-as-you-go tools available for trialling, testing and modifying solutions,” observes Arina Campbell-Pitt, a senior IT executive at Li Fung, a global supplier. This approach is like a buffet: effective technology service provision offered to the greatest number of knowledgeable, empowered, enterprise users possible so that they can help themselves. This not only speeds up adoption and enhances efficiencies; it also distributes the burden of technology innovation throughout the organisation. “The only way to respond to an ever-increasing number of technology requests is to ensure that the buffet table is always as full as possible, while getting end users to weigh in on what, and how much, they are consuming,” says Ms Campbell-Pitt. The tools that firms adopt, and the way they integrate those tools into their business planning practices, are naturally dependent on their operating environments. Respondents in information-intensive sectors, such as financial services and healthcare, indicate that they are much more likely to bring the technology planning team into the business strategy process early, usually at initial project commissioning. Finance respondents believe that early involvement of technology planners is critical for process redesign, and for projects involving customer interactions. These conditions, particularly in fast-growing Asia, change rapidly, as do the capabilities and competencies of the firms themselves. The pace with which enabling technology flows down to line managers and even front-line employees is due to a confluence of trends changing the way enterprise technology is accessed. The cloud model, for instance, allows for “pay-as-you-go” usage and the ability for users to access, modify and deploy new applications without necessarily having technology skills. Furthermore, personal technology, particularly mobility, is influencing the way workers use technology, and increasing their expectations of the technology’s utility. The corollary of that is that firms should not adopt a single business practice or set of policies with regards to technology, but must adopt one that can be perpetually flexible.
  • 13. 12 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia C-suite executives in Asia have found that investments in new technologies such as data capture and analytics can accelerate the planning process. This in turn increases the ability of decision-makers within the organisation to inform, define, communicate, react to, and achieve their strategic objectives. Therefore, to maximise this positive effect—and ideally tighten up the cycles between planning and execution—technology investments must be an integral part of overall business strategy. This only works, however, if management enables decision-makers throughout the organisational hierarchy to access and leverage insights enabled by these technologies. Similarly, collaboration is enhanced by these new technologies, potentially increasing productivity and idea generation across the organisation. But in order to realise this, a key part of the technology adoption process must be a change or reinforcement of this mindset to inform, enable, and empower decision-makers. The larger implication here is not that a firm’s decision-makers have to come from information- centric industries in order to make the right technology decisions that help quicken and smarten their overall business planning process. Rather, all executives running businesses in Asia must understand what early adopters perhaps instinctively grasp: that responding to new technologies in a fast and flexible way, and in a way that considers their impact on the business from an early stage in the planning process, will likely cause them to base their technology decisions around business-critical functions such as getting more insight out of customer data, or creating more efficient workflows. Technology, in turn, builds more robust and more nimble decision-making processes, because these tools help executives do two things more powerfully: gather insight from increasing points of data, and empower more team members to execute business plans based on the implications of those insights. Plans based on the notion that plans must change will be the most successful in Asia’s complex, fast-running markets. Conclusion
  • 14. 13© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia Appendix: Survey results Note: Percentages may not total 100 due to rounding or the ability of respondents to choose multiple responses In which country are you personally located? (% respondents) 2 3 3 4 5 7 7 7 8 11 11 16 18 Taiwan Vietnam Thailand Indonesia Philippines South Korea Malaysia Japan Hong Kong Singapore China Australia India
  • 15. 14 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia What is your primary industry? (% respondents) How many people work at your organisation? (% respondents) 1 1 1 1 1 1 2 2 3 4 5 6 8 8 9 9 9 13 15 Aerospace and defence Telecoms Government/Public sector Logistics and distribution Education Agriculture and agribusiness Entertainment, media and publishing Automotive Retailing Transportation, travel and tourism Consumer goods Chemicals Professional services IT and technology Healthcare, pharmaceuticals and biotechnology Energy and natural resources Construction and real estate Financial services Manufacturing 11 27 14 12 12 8 9 6 Over 10,000 1,001-10,000 501-1,000 201-500 101-200 51-100 11-50 1-10
  • 16. 15© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia What 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) 7 3 18 25 47 $10bn or more $5bn to $10bn $1bn to $5bn $500m to $1bn $500m or less 0 8 9 11 12 15 19 26 Other C-level executive CHRO/HR director, or equivalent CIO/Technology director, or equivalent CMO/Marketing director, or equivalent COO/Head of operations, or equivalent CFO/Treasurer/Comptroller, or equivalent CEO/President/Managing director, or equivalent 17 30 34 35 38 41 41 49 53 83 70 66 65 62 59 59 51 47 Labour unrest Infrastructure deficits Intellectual property theft Property prices/ rents Legal/regulatory uncertainty Working capital/getting paid Insufficient market/customer data Rising labour costs Staff shortages
  • 17. 16 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia 2. 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 technologies are being adopted to address the challenge. Please tick all that apply. (% respondents) 12 46 51 56 71 72 72 74 82 88 54 49 44 29 28 28 26 18 Other, please specify Reducing capital expenditure Building new production facilities Increasing local content in product/design/RD processes Revising/creating new customer segments Creating new products/services Reducing operational costs Entering new markets Improving profitability 10 6 11 15 22 16 17 15 22 23 25 26 29 34 36 37 42 44 18 11 17 17 26 23 21 19 26 15 9 18 20 27 20 23 22 28 12 7 18 19 16 15 18 18 22 15 15 11 17 15 27 26 28 17 Staff shortages Insufficient market/ customer data Building new production facilities Increasing local content in product /design/RD processes Reducing operational costs Entering new markets Creating new products/services Revising/creating new customer segments Improving profitability Data capture and analytics Enterprise mobility Software as a service Enhancing IT security Social media technologies Cloud computing
  • 18. 17© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia 0 4 8 9 6 5 11 15 10 8 11 11 13 14 17 20 22 6 7 10 8 6 13 17 18 5 7 7 10 8 12 17 16 6 24 7 9 11 10 11 15 5 8 5 5 8 6 10 10 Labour unrest Intellectual property theft Property prices/ rents Infrastructure deficits Legal/regulatory uncertainty Working capital/getting paid Reducing capital expenditure Rising labour costs Data capture and analytics Enterprise mobility Software as a service Enhancing IT security Social media technologies Cloud computing 4. Please rate the following technology adoption issues in terms of their impact on your business strategy in Asia. Rate on a scale of 1 to 5, where 1 = Critical impact and 5 = No impact. (% respondents) 12 11 15 16 25 26 21 31 38 36 37 41 32 35 28 27 24 19 16 15 13 14 10 9 19 9 6 7 4 5 Cloud computing Social media technologies Software as a service Enterprise mobility IT security Data capture and analytics Critical Impact 1 2 3 4 No impact 5
  • 19. 18 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia 5. 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 the organisation? Rate on a scale of 1 to 5, where 1 = Strong positive impact and 5 = Strong negative impact. (% respondents) Data capture and analytics (managing big data) IT security Software as a service (or other IT utility usage models) Enterprise mobility Social media technologies Cloud computing 47 22 16 6 9 39 40 11 7 3 33 32 15 10 9 33 27 19 10 11 21 42 17 11 9 9 37 15 14 25 Fully adopted; in management and refinement stage In process of adopting Evaluating implementation options Considering need for adoption No action taken 13 10 13 14 21 20 26 36 30 34 39 39 21 27 31 28 24 29 2 7 4 4 1 4 1 1 1 1 1 0 38 21 22 19 14 8 Cloud computing Social media technologies Enterprise mobility Software as a service Data capture and analytics IT security Strong positive impact 1 2 3 4 Strong negative impact 5 Have yet to implement
  • 20. 19© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia 7. 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 in terms of technology adoption?(% respondents) 9. Which statement best describes the role of your CIO in decisions regarding business strategy? (% respondents) 17 22 61 Budgetary considerations are more important Strategic objectives are more important Strategic and budgetary considerations are equally important 1 16 31 52 Don’t know We are lagging our industry peers We are an industry leader We are on par with the industry average 1 8 25 33 33 CIO takes direction on technology implementation primarily from the CFO CIO takes direction on technology implementation primarily from the CEO CIO makes technology decisions based primarily on the firm’s operational requirements, and/or budgetary parameters CIO is actively involved in the planning stages of all firm-wide strategic initiatives, and makes technology decisions based primarily on the firm’s strategic direction
  • 21. 20 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia 10. 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 of technology? (% respondents) 12. Within your company, what degree of influence do the following functional roles have on technology adoption decisions? (% respondents) 23 23 27 27 CIO’s role is purely strategic: interacting with other CXOs and communicating firm’s overall strategy with direct report CIO is actively involved in the day-to-day operations of the IT department CIO is involved with any software or IT service decision CIO is involved with big enterprise IT decisions but not individual software or IT service discussions 28 35 36 9 12 20 23 36 CEO relies on the advice of the CFO CEO is involved in evaluating options based on budgetary constraints. CEO relies on the advice of the CIO CEO is involved in evaluating options based on operating needs of the company CEO is actively involved in evaluating options based on strategic objectives 3 2 19 26 61 36 40 56 65 27 49 49 20 8 11 12 9 5 1 1 Relevant business head IT specialist CFO CIO/CTO CEO Ultimate decision maker Strong influence Some influence No influence 2
  • 22. 21© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia 13. What sources of information have the greatest influence on your technology adoption decisions? 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) Customers Employees Business partners Government/regulators Suppliers Professional service providers Industry peers/ communities Analysts External consultants Google/ search engines 21 42 27 8 3 Great Influence 1 2 3 4 No influence 5 12 41 37 7 3 12 40 32 9 7 13 30 33 12 11 9 31 41 14 6 9 35 42 12 3 7 34 44 12 4 5 26 36 20 13 5 23 39 26 7 4 22 39 26 9 1 34 34 38 42 45 51 57 Other, please specify Commissioned user experience surveys Social media Trendwatching/market intelligence gathering Point-of-sale/touchpoint feedback collection Informal methods (eg, conversations) Business intelligence/enterprise planning systems Regularly scheduled discussions 60 1
  • 23. 22 © The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia 15. Which of the following technology adoption issues are of most concern to your external stakeholders? Select up to three. (% respondents) 16. What impact have the following technologies... (% respondents) 22 27 36 46 47 56 Social media technologies Cloud computing Software as a service (or other IT utility usage models) Enterprise mobility IT security Data capture and analytics (managing big data) 36 48 60 36 46 47 56 55 21 24 26 27 32 33 28 42 44 44 44 50 31 42 43 42 50 52 44 27 24 22 13 15 Cloud computing Social media technologies Enterprise mobility Software as a service IT security Data capture and analytics Moved decision-making capabilities down the corporate hierarchy; front-line empowerment Increased pressure on managers to respond instantly Made collaborative decision-making faster Have yet to implement
  • 24. 23© The Economist Intelligence Unit Limited 2013 Plan to change, change the plan: Technology adoption and corporate planning in Asia 17. Which of the following statements best describes the relationship between technology trends and ongoing strategic planning? (% respondents) 18. At what stage of the following types of specific business strategy initiatives is the technology planning 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) 7 15 35 43 Our technology decisions are reactive to external pressures Technology decisions are largely financially driven and unconnected to core business strategy Technology adoption decisions are evaluated concurrently with larger business strategy decisions Technology decisions are formulated as a result of our overall business strategy process Initial project commissioning Project specification and design After project kick-off 32 38 41 46 40 35 39 38 27 27 20 16 Revising key enterprise performance metrics New product design Addressing/refining customer experience Process redesign or efficiency drive Senior management believes the ability to adopt leading-edge IT solutions is critical to business performance Our firm’s ability to adopt business-relevant technology has provided us with competitive advantage Senior management can clearly see significant trends on the IT horizon We are usually an early adopter of the IT solutions that matter most to our firm Senior management has the ability to determine which new IT trends will have significant impact on our business 32 40 23 31 30 33 25 9 3 27 42 21 9 1 23 28 30 15 5 22 29 28 9 1 Strongly Agree 1 2 3 4 Strongly disagree 5
  • 25. While every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd. nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in this white paper.
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