“Historically, 60% of market leaders who go into an economic downturn will take advantage of the opportunities to grow their market share and maintain market leadership,” said Michel Feaster, director of business service automation software and solutions at HP’s Technology Solutions Group. “The other 40% will lose their market-leading position. At the end of a recession, one-third of the market leaders will be new companies.”
Make it better
“Asia Pacific still does not lead the world in technology adoption,” said Feaster. “While their operating models are solid, Asia-Pacific companies should, over the next two years, consider the potential of technologies like virtualization and automation which have emerged [or become more viable] since the last downturn in 1997. How do they take their already-good processes and make them even more efficient?”
Globally, 38% of 490 senior-level business and technology decision makers interviewed in a recent HP-commissioned survey view the current economic climate as an opportunity to deploy a shrewd technology strategy to improve efficiency and cost-effectiveness so that they can come out of the economic downturn ahead of competitors.
In the survey conducted by PSB Research, 69% of respondents feel that in today’s economic climate, it is more important than ever to apply technology to maintain current revenue streams or to generate new revenue streams as well as improve resources and support to business units.
Approximately 75% of the respondents interviewed via phone are from enterprise-level companies and 25% are from mid-market companies. The companies are based in the US, Canada, the UK, Germany, France, Denmark, United Arab Emirates, Russia, Czech Republic, China, Japan, Australia, the Philippines, Brazil and Mexico.
“Many companies will tell you that they think they’re lean but there is always an opportunity for technology to improve productivity,” added Feaster. “They have not fully grasped, for example, the efficiencies that are possible in a fully virtualised or automated IT environment.”
“Three to five years from now, IT groups will be less siloed and more shared,” said Feaster. “At the end of the day, we want to deliver services on demand. An environment that is fully virtualised and where applications are standardised is the basis for cloud computing.”