Computerworld Philippines Staff
July 31, 2009

Undeterred by the effects of the global financial crisis, SMBs (small and medium businesses) are bullish in implementing strategic IT strategies to bolster operations efficiency, a new study by IT solutions and consulting firm IBM revealed recently.

According to the study, conducted among midsize businesses across 17 countries from April to May 2009, a vast majority of SMBs retain improving business efficiency as a key priority for IT departments. Enhancing customer service and improving business agility, on the other hand, follow the list of priorities closely.

The study likewise found that contrary to expectations, SMBs are not reducing, but rethinking, their IT budgets. Around 15% report that their budgets have actually increased, while a significant 39% have the same budgets but changing priorities.

“Midmarket organizations openly acknowledge the challenges posed by the current economy, but they are not paralyzed into inaction. In spite of tough economic conditions and concerns about lack of implementation skills, they are continuing to spend and plan against their key IT projects to support their business goals,” said Chestnut Andaya, country manager for general business, IBM Philippines.

The study also highlighted the growing role of emerging technologies such as cloud computing, green IT and social media in the SMB space. Among those surveyed, 79% have taken up moves to pursue green IT, while a close 71% and 69% have utilized Web 2.0 and cloud computing in their operations.

“The study clearly shows that midsize companies, which we believe will be the engines that lead us back to economic growth, are being cautiously optimistic and proactive. IBM is more than willing to sit down and discuss these useful findings to all midmarket companies in the Philippines,” Andaya noted. – John Mark V. Tuazon

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Companies shifting focus out of effective risk management stand to lose in the long run, global advisory firm Ovum warned in its press statement Tuesday.

In a report entitled “Managing risk during an economic downturn,” the consulting firm said that the economic downturn has in fact increased the level of risks companies are exposed to, even if they are forced to do more with less. It added that the recent crisis actually exposed such cracks in the old paradigm.

“The financial crisis has provided a very high profile example of how poor risk management practices can severely impact not only a business but also a whole industry sector”, said Helena Schwenk, senior analyst, Ovum and author of the report. “While the banking system recovers and readjusts from the crisis and moves to a more tightly controlled and regulated risk management environment, other industry sectors are advised to take heed of the risk management lessons learnt from this painful episode.”

Companies can effectively handle risks in an enterprise environment, away from the isolated silo approach which tend to become detrimental to the company’s security, it said.

Ovum said much of the past failures were not due to failed risk management, but to lack of understanding and discipline as to how it should be done correctly. The firm pointed out that the inability to have a more holistic view of risk management and the lack of understanding of interdependencies among business risks can ultimately lead to failure in the future.

“The current economic crisis has also underscored the need to treat risk management not just as a strategic ideal, but also as an operational imperative,” Schwenk said. “Businesses need to make sure that risk management trickles down from high-level business strategy, objectives and goals to the operational coalfaces of the organization.” — John Mark V. Tuazon

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