16.04.2009
By: Chetan Jain, SAP Consulting
In the meantime, enterprises are tightening their belts and looking for creative ways to do business. What role does IT have to play in this process and what are, or could, enterprises be doing to weather the storm?
IT industry and the economic crisis Until now the IT industry was a safe haven in difficult economic times. But the current financial crisis seems be hitting the sector hard. Is this the end of the golden age? Experts say “no”!
Productivity and growth have long been the major selling points of the IT industry—some would say now more than ever—but the economic downturn has added a new dimension to customer demand. While growth is still high on the wish list, for most companies the priority is stabilizing revenue. Optimization and efficiency are the new buzzwords, and IT vendors are being called upon to help enterprises manage their costs and unlock hidden business potential.
As companies start to feel the pinch, many will look hard at their existing IT landscapes to squeeze out what value they can from their current investments. Internal measures such as optimizing hardware usage, activating unused software, and deploying standardized solutions in favor of expensive developments can reap considerable benefit. As resources become scarce, underused solutions will also come under scrutiny, with the aim of rationalizing and freeing up valuable hardware and resources.
For those looking for additional IT support, solutions offering rapid time-to-value and easy implementation will find most favor. For example, Supply Chain Management solutions that drive efficiency in logistics, or Shared Service Centers that consolidate administrative processes, offer cost savings with a quick and visible impact. Enterprises will also look to IT as a means of generating cash flow. Business Intelligence solutions provide valuable insights into the efficiency of cash collection, while price optimization solutions uncover discrepancies and pinpoint the potential gains of re-alignment.
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