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INTRODUCTION
In the fast-paced, jargon-filled world of the Indian information technology industry, a new acronym is
being marked in bold. "SMAC", the acronym for social, mobility, analytics and cloud, is not just the latest
buzz word but it's also quickly becoming a business reality. Prevalence of social media, smart devices,
and instant connectivity has radical altered expectations of customers. So while this year might be the
year of recovery, growth in 2014 is going to be driven by the opportunity in SMAC -social, mobile,
analytics, and cloud technologies. Moreover, integration and confluence of these Technologies will form
the bedrock of future solutions.
The emergence of new technologies over the past few years has resulted in a transformational change in
the world around us. From the rise of social media with its over 1 billion subscribers worldwide, to the
ubiquitous spread of mobile Phones and the resulting explosion of big data and big analytics, the world
around us is changing faster than any one of us could ever imagine. Add to this the ever expanding
presence of cloud computing in our life, and were probably witnessing the zenith of the technological
age. India believes that four key technologies will hold the key to success for enterprises across the world.
Social, Mobility, Analytics and Cloud (SMAC) are individual technologies and platforms which have
risen during the past few years and have shown immense growth.
The convergence on these technologies means dismantling the traditional business design: No longer is it
required to keep people and information in the same location or to spend big money to support
information sharing, communication and collaboration.
SMAC based solutions, when offered and deployed as a SaaS based model, have given businesses are
inopportunity to develop innovative solutions that ultimately lead to leveraging public IT infrastructure,
lowering cost of ownership and deployment of innovative applications that not only improve enterprise
decision making capabilities but also allows them to rollout new unprecedented business models and
increase their each to customers.
2. PRINCIPLE
SMAC technologies are the new change agents in enterprise IT. When implemented, these technologies
serve as a synergetic solution for digitally transforming an organization to be better equipped for the
future of business.
4. SMAC STATISTICS
According to various reports, the statistics of these four technologies enables to combine them and work
together. From the rise of social media with its over 1 billion subscribers worldwide, to the ubiquitous
spread of mobile phones and the resulting explosion of big data and big analytics, the world around us is
changing faster than any one of us could ever imagine. Add to this the ever expanding presence of cloud
computing in our life, and were probably witnessing the zenith of the technological age. KPMG in India
believes that four key technologies will hold the key to success for enterprises across the world. These
include:
Fig4.SMAC statistics
4.1 SOCIAL MEDIA
A social media strategy has become a must for all enterprises, be it banks, retailers or the government.
With over one billion individuals logged on to various social networks, people are now using social media
for advice on what products to buy, where to shop and even regarding what firms they want to work with.
While most enterprises use social media for their customer service function only, many firms have now
started using social media in tandem with their sales and marketing functions. This in turn enables firms
to use data generated by the customers effectively to service their larger pools of customers.
Face book, LinkedIn, Twitter, Foursquare the new way how businesses and individuals are connecting
with each other, globally. Enterprises are increasingly leveraging social media for customer engagement
and brand building, as more and more individuals are becoming active Internet users and using social
media. Further, the proliferation of smart devices and increasing mobile internet usage has supported the
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growth of active Internet users. Social media platforms are not only restricted to the social networking
sites such as Face book and LinkedIn, rather extended to various forms of social media including
YouTube, blogs, social bookmarking, geo-location sites, and daily deals. As the social media modes
differ, so their application and priority from business to business. Moreover, changing business dynamics
influences enterprise decision to select a social media platform. While daily deals lost its position,
platforms like YouTube continues to be top preference of businesses followed by Face book, blogs,
LinkedIn and Twitter. YouTube is the chart topper, however, collectively Face book, LinkedIn and Twitter
signifies the importance of social networking in the social media world. Moreover, collectively the social
networking sites nearly reach one in four, globally. The Social network users are expected to reach 1.73
billion this year, an 18 percent increase from 2012 driven by rising adoption in emerging countries.
With 1 in every 4 minutes online being spent on social networking, it becomes imperative for
businesses to have a presence in the social media circuits.
With the advent of smart phones and tablet PCs, people are staying connected to their friends and
loved ones 24*7 through social networking apps along with the freedom of mobility.
The users on social networking sites are creating tons of data by conversing, sharing
images/videos, reviewing products and comparing before buying. All this data generated by the
social network users, if analyzed can generate considerable insights for businesses. This is where
Analytics comes in.
Social media analytics has emerged as a powerful tool for uncovering customers entailments
dispersed across countless online sources.
As businesses feel the pressure to gain new insights from social media they require analytics
expertise to transform this massive information into actionable insights.
Social media analytics help organizations provide meaningful insights into the data created by
social website users so they can improve customer satisfaction, identify patterns and trends, and
makes matter decisions regarding marketing campaigns.
Firms are investing heavily in software and hardware to study the online behavior of customers
and trying to directly co-relate these with revenue streams.
A pendulum shaped, countdown cover image of the OMG! Sale campaign as a teaser was
uploaded on Face book
The event link was shared on the brands Face book wall
Interesting OMG! Videos were shared on Citibank Indias Face book wall
Citibank card spends grew eight times over average daily spends at the 17 partner websites
The average ticket size increased by 30% for the partner websites on Citibank cards
Citibank India Fan page achieved the highest reach ever visits in 2012 20,95,104 and the
highestvirality7.63% during the OMG! Sale
This (social media) is perhaps the only medium through which one can engage and intrigue their
consumers, create conversations and connect with them based on their preference.
4.2 MOBILE
Mobile devices have changed the way people access digital content. Smart phones and tablets have
brought rich, digital content to the fingertips of consumers.
Mobile banking has emerged as one of the most innovative products in the financial services industry.
Shoppers are increasingly using their mobile devices for everything from browsing to comparing to
buying products. Governments are also reaching out to their citizens, using mobile devices as an
Efficientchannel. Enterprises must also jump on to the mobility bandwagon, and ensure that their
applications are mobile ready.
4.2.1 Key trends in mobility.
Spread of BYOD: As more and smarter phones, tablets and other devices find their way into the hands of
employees, the demand to use them at work will intensify. This trend will only accelerate in the years to
come, and more and more enterprises are adopting a formal Bring Your Own Device (BYOD) policy.
Employees are engaging in multiple work-related activities using their mobile devices; the three key
activities include:
a. Reading or viewing documents, spreadsheets, or presentations.
b. Tablets are often used for analytics and modeling as well as to access web meetings and
c.
videoconferences.
Accessing email, calendar, and intranet or employee portal sites lead the way for both
devices.
The concept of BYOD is playing an important role in enhancing productivity, agility, employee
satisfaction and retention in the enterprise. With the proliferation of employee owned devices, ubiquitous
information access and the growing influence of CXOs in technology Decisions, CIOs need to strike a
balance between user expectations and enterprise requirements and institutionalize governance to secure
business information while enhancing efficiencies.
4.3 ANALYTICS
Every year, companies and individuals generate billions of gigabytes of data. Data, which properly
analyzed and used in time, can emerge as an unbeatable competitive advantage. Enterprises need to
recognize the prospect analytics. Represents and should adapt their IT strategy to capture such
opportunities. Analytics can help retailers predict buying decisions of shoppers; it can help banks weed
out fraudulent transactions; while governments can use analytics to provide services directly to their
citizens. Predictive analytics has also been adopted across industries in various scenario building
activities.
Fig4. Analytical Environment:
across the world have started using analytics for optimizing public welfare programs, reducing traffic
congestion in their cities and fighting crime.
The proliferation of the internet and the mobile era has increased the rate at which data is created
and stored; hence, there is a need for tools and techniques to analyze data at an equal speed.
80% of the data available today is unstructured and includes raw text, audio/video files, clickstream data, blogs, social media, location coordinates, and weather patterns.
Organizations are increasingly realizing that unstructured data, if analyzed, can provide a
competitive edge.
Example:
Turn 12TB of tweets created each day into improved product sentiment analysis.
Convert 350 billion annual meter readings to better predict power consumption.
Big Data analytics is the process of applying advanced analytics and visualization techniques to
large datasets to uncover hidden patterns and unknown correlations for effective decision making.
Big Data analytics helps businesses make better decisions by analyzing large volumes of
structured and unstructured data, predict and identify change and identify new opportunities such
as new business segments, best suppliers, associate products and sales seasonality.
The pace of cloud adoption shows no sign of slowing down as more and more functions are
migrating to cloud services
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Apart from reduction in IT costs, benefits derived from migration to cloud in terms of innovation
in processes, products & services across various sectors is also driving this growth
AS per a survey by KPMG, 59% of providers say that cost reduction is the customersmain reason
for using cloud. Other important reasons for shifting included Speed to adoption (31%), Business
Process Transformation (30%) & improved interaction with customers (26%)
Infrastructure as a service
(IaaS)
IBM
5. EVOLUTION OF IT
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The US$108billion Indian IT-BPM industry has been a global power house over the last decade.
The first $100 billion revenues were achieved due to Indias arbitrage advantage but going forward as the
linearity in the industry diminishes, the Indian IT companies will have to move up the value chain and
provide their clients with quality solutions in addition to the low cost advantage.
According to are cent survey by Gartner, Analytics, Mobile technologies and Cloud computing are the
three top most priorities of CIOs world over and these services are set to change the face of the
global IT-BPM market drastically over the course of the next few years.
With more than 25% of the users online time beings spent on social networking sites like Face
book, Twitter and Google+ ,social media is changing the way in which companies are interacting
with their customers and is extensively being used by companies for brand building and customer
engagement.
Mobility services have brought the whole world to a tap of a finger and with services available on
the go business efficiency has increased and interactions with customers and employees have
become more informative, which in turn has resulted in increased revenues.
Analytics has its root in the need to analyze at a being generated through social media, mobile app
sand click stream. With 2.5 billion gigabyte of data being generated every day, firms are investing
heavily on analytics to identify hidden trends and patterns, to gauge us to be likes and dislikes and
use the insights obtained for superior decision making.
With ever increasing data, the need to store it and the need to access it any time anywhere has
paved the way for cloud computing (using software and hardware managed by third parties at a
remote location)
Although these technologies have been growing on their own during the past few years, the
convergence of two or more of these presents the greatest opportunities
The global analytics market is expected to reach $25 billion by 2015 and the global cloud market
is expected to be ~$675 billion by 2020. Indian IT players need to capitalize on its already well
established IT/BPM market presence by increasing their services portfolio beyond the typical IT
offerings.
Social, Mobile, Analytics and Cloud (better known as SMAC) presents an opportunity for
players to increase their revenues by shifting into a higher margin business as compared to the
commoditized traditional IT business.
The domestic market of Mobility, Cloud & Analytics in India is also at a relatively nascent stage
as compared to developed countries. Hence the opportunity lies in providing high end outsourcing
services to developed countries and at the same time educating the domestic clients about the
benefits of adopting SMAC solutions.
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As the market matures the small players are going to look at being acquired or forming alliances
with larger players who would provide them the market presence, systems and processes, and big
IT-BPM players would need to acquire smaller players in niche segments in order to develop
domain expertise and also develop geographical presence. The next wave of M&A and Private
Equity in IT is going to be dominated by SMAC.
By 2020, the Indian IT industry is slated to collectively rake in over $225 billion (Rs 12.5 lakh crore) in
revenue, thereby riding the wave of emerging technologies and new innovations, according to Nasscom.
Experts feel that to reach this target, the traditional IT companies, which focus on cutting costs and
managing IT infrastructure, need to move into higher-margin projects that help clients' businesses grow.
These technologies also offer companies an opportunity to move to higher-margin business by offering
solutions that help businesses grow instead of increasingly cutting margins for typical IT services
contracts."If you don't do these things, then maybe you'll start falling out of the market," warned
Biswajeet Mahapatra, research director at Gartner. Indian IT service providers traditionally provide
services that support clients by creating and maintaining their software and hardware. Existing services
are now becoming commoditized, forcing companies to seek newer projects that are transformative in
nature and work closer to the client's business. The team Nagarajan heads at HCL Technologies was
formed two years ago to identify disruptive technologies, invest ahead and create an ecosystem of
partners and solution providers for the company.Similar efforts are underway at other technology
companies at Infosys, the country's second-largest IT Company; Infosys Labs plays a key role in
identifying new and emerging technologies. At Labs, the company looks at various technologies and
figures out if it needs to do further research, build competency, invest in capabilities and prepare for
commercialization. "Once the technology is ready to be productized, there is a smooth handshake
between the Labs and my team," said Sanjay Purohit, senior vice-president, global head of Products,
Platforms and Solutions At Infosys, the ambition is to get one-third of revenue from platform, product and
solutions business, which presently account for only 6% of the company's business. There is a clear
recognition of the fact that there is a fundamental disruption happening, says Anurag Srivastava, chief
technology officer and senior vice-president for Wipro's Global IT Business
Indian companies, which count the world's largest banks, retailers and Fortune 500 companies as clients
have seen them demand solutions that leverage social, cloud, mobile and analytics.
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Fig5. Evolution of IT
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9. REFERENCES
http://www.cognizant.com/smac
http://www.pwc.com/us/en/technology-forecast/2012/issue2/features/feature-creating-openeingapis.jhtml
http://www.informationweekin/informationweek/newsanalysis/287376/governance-2014utm_source=referrence_article
http://survey.nassom.in/smac-new-buzzword-software-firms.
http://www.infosys.com/flyapp/resources/Documents/mobile-application-testing-pdf
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smac?
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