Over a third of Kiwi CEOs have no involvement in key IT projects

Over a third of Kiwi CEOs have no involvement in key IT projects

IDC survey finds their role is often limited to funding approval.

An IDC survey of 250 organisations across New Zealand has found that more than two-thirds are either evaluating or currently undertaking IT transformation projects.

However, when it comes to the level of involvement of top management in these projects, over a third of the CEOs of these corporations are not perceived as being involved in these transformation programmes, says IDC in its report on The New Zealand IT Services Ecosystem 2011

In cases where CEOs do get involved, it is often limited to a funding approval role, says Rasika Versleijen-Pradhan, senior IT services analyst, New Zealand IT services market.

"Despite the strategic nature of IT transformational projects, there is still a disconnect between IT and business, particularly the role of the CIO within the executive suite, says Versleijen-Pradhan.

"There is a real drive from CIOs to change the stereotypical view of IT's role within the organisation, to one that is visionary, innovative and business driven. But many organisations are yet to see the CIO become an integral part of the executive management team and business strategy."

The annual New Zealand IT services survey also reports on the mindshare of IT service providers (ITSPs) in the local market. Gen-i, IBM, and Datacom are placed in the top three, while HP lost its pole position from 2010 to be ranked 4th in 2011.

The report further notes while there is a strong top of mind awareness of Tier 1 and high-end Tier 2 ITSPs, some brands achieve stronger conversion rates from awareness to preference, than others.

Understanding the key satisfaction attributes within their client base and new prospects should be top of mind for ITSPs in order to drive customer retention, stronger conversion rates and demonstrate competitive differentiation, says Versleijen-Pradhan.

"This is especially important in a market such as New Zealand that is very fragmented. ITSPs need not only to focus on price, but intangible attributes that are hard to measure such as integrity, trust and relationships, attributes which are difficult for other vendors to replicate.”

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