A new report compiled by FT Remark and Wipro confirms that business process resilience is mission-critical, but also highlights that companies may well be missing opportunities to fortify themselves.
In the global survey of 330 C-suite executives, nearly all respondents (98%) agree that technology risk management is important or very important to the overall running of their firms, while 84% feel their firms’ technology risk management programmes add value.
However, 35% describe their firms’ spending on technology risk management as ‘focused on the next year’, with a further 17% working on a ‘project-by-project basis’.
Less than half (41%) describe their company’s spending as ‘focused on the long-term’. In addition, only 15% of those surveyed state that decisions on technology risk management are made at Board level, even though system failures have implications that reverberate throughout a given business’ ecosystem.
The FT-Remark/Wipro report entitled ‘Building Confidence: The Business of Resilience’ seeks to identify how businesses are rising to the challenges that technology presents, and how they are making their operations more resilient in the process through strategies, investments and partnerships.
“In developing resilience plans, businesses should consider the full range of their operations, from customers to third party suppliers,” explained Nick Cheek, managing editor at Remark (which is part of the Mergermarket Group). “Businesses should also concentrate on making themselves agile and modular so that they can minimise the impact of negative events.”
Data is power
Technology has realised fantastic opportunities for businesses of all sizes. Data is power: the more businesses can understand about their customers, partners and products, the more agile and effective they can be.
“Firms should think of business process resilience in the broader sense,” stated Alexis Samuel, global managing partner at Wipro Consulting Services. “Rather than being considered fodder for CIOs or CTOs, corporates should view these issues as Board-level ones that have far-reaching implications for disparate business arms.”
Balasubramanian Ganesh, CEO for the Products and Solutions business at Wipro, added: “Over the years, the level of investment has not kept pace with that required to address inherent and emerging risks when it comes to the provision of services to customers. The aggregate impacts of this under-investment, accompanied by an increase in customer expectations, have created risks to services which are no longer acceptable. Such risks will typically need to be addressed by a significant and sustained programme of investment.”
Additional key findings of the report
• At 65%, the largest share of respondents state that integrating new technologies with old is one of their biggest challenges. This is followed by projects being too difficult or complex (52%)
• The most pressing area of concern over the next 12 months is business continuity and disaster recovery planning, with respondents rating this at 4.09 on a scale of 1 to 5 (where 1 is not at all important and 5 is very important)
• Regarding social media, 74% of respondents say that reputational or brand damage is a potential pitfall
• For those who agree that technology risk management adds value, 72% say that it does so by increasing customer satisfaction or confidence
• When thinking about business process resilience, 88% of respondents consider their own firm with only 65% thinking about their customers
‘Building Confidence: The Business of Resilience’ identifies key trends in business process resilience (defined as a firm’s ‘ability to cope with change, both expected and unexpected’), particularly in relation to managing technology risk.
With globalisation and hyper-connectivity, resilience is being taken very seriously at Board level and external consultants are being brought in to bridge the skills gaps that exist as new technologies emerge.
For the purposes of the report, FT Remark interviewed 330 C-suite executives from corporations with an annual turnover of US$500 million or greater. The interview pool was comprised of 113 respondents from Europe, 100 respondents from the USA, 80 respondents from the Asia Pacific region and 37 respondents from Africa.
To qualify for participation in the study, respondents must have allocated budget to technology risk management in the past two years or have plans to do so in the coming year.