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5 Reasons why CIOs should not ignore SMAC

As if a single hyped up technology or trend were not enough, CIOs these days have to contend with a bunch of them—take SMAC, for instance. By now, everyone knows what it stands for (Social, Mobile, Analytics and Cloud, just for the record). Few, however, have figured out what exactly to do about it, by when and to what extent. And then there are those still wondering whether SMAC can have any significant impact on their kind of business.

As if a single hyped up technology or trend were not enough, CIOs these days have to contend with a bunch of them—take SMAC, for instance. By now, everyone knows what it stands for (Social, Mobile, Analytics and Cloud, just for the record). Few, however, have figured out what exactly to do about it, by when and to what extent. And then there are those still wondering whether SMAC can have any significant impact on their kind of business.

From the signs around us, it might be prudent for organisations to at least keep their ears to the ground and keep listening. Here are five key reasons why CIOs cannot—or rather, should not—ignore the vibrations coming from SMAC:

Size does matter: All the four underlying technologies in SMAC are reaching or set to reach critical mass pretty soon. According to latest data from the International Telecommunication Union, over 2.3 billion people will have access to mobile broadband by 2014-end and close to 1.9 billion people are now active on social networks. As per an IDC study, by 2020, nearly 40% of the information in the digital universe will be touched by cloud computing. Further, an AT Kearney forecast puts the global spending on big data hardware, software and services at $114 billion in 2018. The numbers, to say the least, are quite compelling.

Unprecedented flexibility: SMAC is not just a clever acronym; IT in general and enterprise computing in particular is witnessing an increasing interplay of social, mobile, analytics and cloud technologies. Applications are being written and rolled out keeping all the four in mind. This, in turn, gives hitherto-unknown flexibility to people in how they live, work, play and make decisions. CIOs that can leverage this situation have a chance to make their enterprises truly flexible and agile.

Customer-centricity: While cloud has more to do with the enterprise computing or outsourcing model a company wants to embrace, the combination of social, mobile and analytics (especially big data analytics) now offers deeper-than-ever insights into customer behaviour—in real or almost-real time. So, if technology decision makers can mould their customer relationship efforts in tune with these trends, they are sure to move much closer to the mantra of customer-centricity.

Another chance at collaboration: Remember KM (knowledge management)? Or, for that matter, intranets? At some point in the slightly distant past of business technology’s evolution, they were touted to unleash a surge of collaborative, untapped energy in enterprises. Then came video-conferencing and unified communication (which are said to be relatively more successful).

However, in all probability, collaboration may have its biggest moment yet in SMAC. For one, most people are already mobile and on multiple social networks—for personal as well as work purposes. SMAC can give CIOs another (but high-potential) chance at enabling a collaborative environment—not just for employees but also for partners, suppliers and other stakeholders.

Competition from other CXOs: For the past couple of years, there has been talk of some parts of IT budgets going to the kitty of other CXOs in the organisation, most notably the CMOs. Some of that talk has indeed translated into real rupees.

And, what started with cloud now seems to affect the realms of social, mobile and analytics too. Here’s how the thinking goes: if there are ready-made solutions in these domains that can be purchased by a swipe of the credit card, why not? Why spend time and effort asking the IT team to either do it in-house or procure a solution by the rather lengthy process?

Such thinking and practices are causing much heartburn among CIOs—and that’s why they need to brush up on SMAC. (In fact, they can take heart from some examples: in some over-zealous cases where other CXOs had introduced social or cloud initiatives on their own, it was observed that while the rollout was quick and things went on fine initially, the chickens ultimately came home to roost when it came to managing and sustaining those projects. It was the IT department that was called in to help.)

Like any other technology or combination of technologies, SMAC is not a silver bullet that can be a cure-all. But the confluence of the four powerful trends that SMAC enfolds, if implemented properly for respective business segments and specific needs, can indeed sweep the shores of enterprise tech with a fresh energy and vitality.

Sanjay Gupta is an editorial consultant and freelance writer based in Delhi. He can be reached at thinksanjay@gmail.com

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