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What IT Can Learn From The Auto Industry
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Mahender
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Mahender,
User Rank: Apprentice
7/1/2014 | 2:22:47 AM
Good thought | enterprise IT transformation is needed
I avoid to be personal, Good thought and IT service sector is definitely saturated and need to go through consolidation because of challenge associated with license management and vendor management etc etc . Though industry consolidation will take time as enterprise transformation initiative generally takes 3-6 year of implementation. Moreover each enterprise has different IT service management hypothesis, which makes it challenging to transformed or optimized by any service or tool provider.mahender.
TecExec
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TecExec,
User Rank: Apprentice
6/30/2014 | 12:53:50 PM
Re: Heightened Competition?
From my personal experience I've noticed a great deal of waste in the automotive sector.  I observed a proliferation of Shadow IT and one-off applications throughout the enterprise. Obviously, there is a significant cost associated with a dysfunctional asset management model.  As a result, they are wasting millions on an annual basis.  I applaud their recent improvements in product quality and innovation.  However, there is still significant room for improvement internally.               
yalanand
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yalanand,
User Rank: Ninja
6/30/2014 | 12:08:49 PM
Re: Heightened Competition?
@Stratustician: Cutting budgets may have adverse effects. Severe budget cuts hamper the though process of engineering managers and software engineers in carrying out a project swiftly, thus reducing overall efficiency.
yalanand
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yalanand,
User Rank: Ninja
6/30/2014 | 12:07:56 PM
Re: Heightened Competition?
@RobPreston: rightly said. I suppose the competition is good, but not in all sectors. If the competition was for budgets, then that'd be an entire story altogether. Competing for proper budget and finding efficient means under the given budget would compel the IT industry giants to push their efficiency in software and products.
yalanand
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yalanand,
User Rank: Ninja
6/30/2014 | 12:07:13 PM
Re:What IT Can Learn From The Auto Industry
Automotive industry succeeds because the primary concern for them is to provide higher power output without compromising miles per gallon. That being said, the only concern for IT companies is innovation without efficiency and plans that are not passed with the Board authorities (also they want more profit with every year).
Stratustician
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Stratustician,
User Rank: Ninja
6/29/2014 | 11:00:13 AM
Re: Heightened Competition?
I think it could be that IT departments have traditionally been viewed as a cost centre, so until there is a reason for them to have to cut budgets and drive more efficiency, there isn't the same drive (no pun intended) to proactively look for ways to be more competitive the same way other departments might need to (sales and marketing for example).  Until there is an increased pressure for them to reduce their budgets and create more efficiencies through cloud services and other projects, I don't think we will see the same type of innovation or competitive response.
RobPreston
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RobPreston,
User Rank: Author
6/27/2014 | 2:14:25 PM
Heightened Competition?
Sumir, what drove the US auto makers to become more cost-efficient and technically advanced was the fact that offshore-based competitors were eating their lunch. Are you not seeing IT organizations facing heightened competition as well -- in the form of external IT providers as well as other internal departments (like marketing) that are getting their own IT budgets? I would expect that the increased external and internal competition for IT budgets would be enough to force IT organizations to get leaner and meaner. Not your experience?


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