Industry

With the boom years officially over, construction faces a tough time with many projects being slowed to a halt. The need to save costs will be primary although more advanced firms stand to benefit from demand for greener building with integral management systems.

Transport and distribution firms are having to question long-held tenets of wisdom as the cost of fuel, clogged networks and environmental factors change the very soul of their sector. Watchers including Warren Buffett expect to see freight companies turn increasingly to rail and there is pressure on government to let the strains take the strain off UK motorways. At the same time airlines continue to lurch from crisis to crisis.

Communications and IT services companies lived high on the hog as the economy boomed and firms sought to develop new digital online brands. Today, cost cutting and rapid RoI are more the name of the game although companies in retail, media and other crisis-hit sectors are also forced into bet-the-farm transformation exercises.

Energy and metals firms are having to respond to a highly dynamic marketplace with volatility in oil prices and raw materials. At the same time, energy companies must deal with environmental lobbyists seeking safe renewable, a sharper consumer and watchdogs that track their prices, terms and conditions. They are responding with smart marketing and bundled offerings that entice buyers to purchase other services together with their energy tariffs. CIOs are being called upon to support, and even lead, this change.

Utilities continue to face intense scrutiny from regulators on their billing and handling of operations. Complex bundled offerings seem often to confuse consumers and push more consumers to price-comparison sites. In response, CIOs are being asked to come up with flexible platforms that support rapid change all quite a change for companies that often came from the world of state ownership.

In retail, the great UK high street continues to fade fast as banner names fall by the wayside. However, online presences continue to grow and retailers are pursuing new lines to extend their brands. In particular, supermarkets like Tesco, Sainsbury’s, Marks and Spencer and Waitrose are all attempting to become broader players selling everything from baked beans to pharmaceuticals and financial services. The need for IT to support this activity is acute and retail CIOs are in many cases becoming the superstars of their sector.

Leisure and entertainment companies continue to transmogrifed by the rise of the internet. Media is being utterly changed as firms push to cut costs, reduce dependency on print and digitise; advertising and broadcast firms are being hurt by the macro economy; but new betting firms are enjoying success in taking share from the traditional high-street bookies.

It has been another hugely traumatic year in financial services as companies face repeated shock waves after the collapse in global banking and lending. CIOs are having to act fast to support rapid acquisition, flotation, merger and demerger activity. At the same time they have to re-examine the notion of risk, comply with tightening of corporate governance mandates and cut costs. The rollercoaster shows no sign of stopping.

After years of expansion, the public sector is under huge pressure to cut costs sharply and across the board. Inevitably, CIOs will bear the brunt of this, sharing services, automating wherever possible and effectively creating a platform for a slimmed-down state. However, uncertainty as to when the next government will be formed, and by whom, means that key projects such as identity cards are left up in the air.

Organisations in manufacturing today face the huge threat of competition from low-cost producers in countries China, India and Brazil, volatility in cost of fuel and raw materials, and they must obey the new mandates to enforce corporate social responsibility and the environment. In order to address these, CIOs are being taxed with rationalising datacentre cost, outsourcing projects and introducing yet more automation through software, sensors and RFID tags, as well as constantly refining ERP and PLM systems to provide flexibility to accommodate changing trends and handle acquisitions.