It is undeniable how IT can help companies manage their expenditures by streamlining complicated business processes and expediting operations, delivering returns on investments in various forms, such as money or value.
IT has, for many years, hence become a critical partner of companies when targeting growth. “We recognize IT as an essential part of the business,” comments Lorraine Belo, chief information officer, Wilcon Builders Supply. “Companies cannot expand without IT, because it is a part of the business requirement for growth.”
For Belo, technology investments offer a unique premium to companies that can expand their businesses.
“That is why I attend forums and lectures on new technologies, so I would know which good ones to implement,” she shares during Computerworld Philippines’ yearend CIO Forum, a bi-annual gathering of CIOs and industry experts discussing various trends and issues in the world of IT.
Belo’s company, however, is a bit cautious about putting new technologies—such as cloud computing and virtualization— in place. “We are not an early adopter, because we are the type of company who wants to see proof of concept first before implementing it on our data center,” she explains.
Wilcon Builders Supply just recently implemented an ERP (enterprise resource planning) system, a proven technology which Belo notes simplified their operations. “But when it comes to cloud computing or virtualization, if it can be adopted here and without issues, then that makesit more reliable,” she quips.
Implementing new but tested technologies is also the strategy of Duty Free Philippines (DFP) in transforming their data center. “Even before, we have used our IT department as an income-generating division of the company,” remarks Dino Belmonte, the company’s MIS division manager. “But just recently, we implemented a business intelligence system to gain insight on the behavior of our customers.”
DFP’s BI system, which started deployment two years ago, helped in the marketing efforts of the company by providing them with inventory data, customer information and market baskets that they leverage for further improvement.
“We are looking into selling this information to our concessionaires so that they would know which of their products, for example, the market is buying,” Belmonte shares.
With their BI system, Belmonte notes how it helped in formulating specific marketing campaigns that would catch the attention of buyers. “By determining their buying patterns, we are able to send them certain information on sales, discounts or campaigns that are relevant to their interests,” he says.
But in the case of Bayan Communications, a local telco provider, transforming their data center meant utilizing their old systems to deliver new business offerings. “We are currently looking at opportunities on how to maximize our data center, and right now we are keen on leveraging new technologies to eventually offer managed services to our clients,” explains Luisito Cuevas, chief information officer of Bayan Communications.
Currently, Cuevas shares, their IT department services the company through support initiatives, with 70% of their work going through maintenance of the infrastructure, leaving only 30% for new projects and innovation. “Companies, especially telecommunications firms, have to embrace technology and move to driving revenue as a partner for the business,” he suggests, adding that by delivering innovative products to customers, telcos can cash in on their investments.
Mounting technology costs, however, remain a hindrance to this utopian dream. “Cost is depriving companies from moving forward,” Cuevas says, “but companies can leverage technologies such as cloud computing to lower their capex (capital expenditures).”
Cuevas said they are currently planning on building a transition team, which would provide “not just support, but also service delivery, bringing added value to the business.”
That way, he adds, IT will no longer be a stagnant component of the company, but a functioning element that can increase their bottom line as well.
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