Thursday, April 21, 2011

Consumers weighing in on IT in the service sector?

The advent of Mobile computing devices has lead to drastic change in consumer behavior especially among the younger generation. The expectations are high from service sectors to deliver to the mobile savvy  consumers. The consumer’s eagerness and readiness to make business transactions through mobile devices is higher than ever. It  is aligned with the increase in the consumption of mobile technology and mobile plans. The 3G and 4G networks and the catchy functionalities within the mobile gadgets are increasing the awareness of the consumers about the potentials. Mobile enabled service has become the de facto expectation from the consumer groups. The "cool" and "awe" factors also has weighed in on most of the businesses to deliver more for mobile consumers.
The recession and the downturn in economy have impacted the businesses worldwide to some extend or the other leading to the pressure to cut cost.  The regulatory compliance expectation is more than ever. Re-regulations have become very common. As the global economy continues to recover from the residual impact of downturn and recession the businesses are facing fierce competition.  The customer loyalty is decreasing which is resulting in the increased struggle to retain customers.
The need of the hour for the businesses is to cut cost and to retain customers.  Decreased tolerance for wastage or perceived wastage has lead to the increased pressure to cut IT cost. The long awaited expectations from IT  by the business leaders to enhance “business” rather than enhancing “ IT” is back in the demand list. The ever increasing and changing regulatory compliance, the need for IT expenditure transparency and accountability is adding to the cost and woe of running IT department. The need for enhanced security is increasing. The competitor's leverage of mobile devices to “wow”  the customers is adding to the woes of IT department. The pressure to go mobile is increasing. Any attempt to mobile enable the business adds to the need for enhanced security and regulatory compliance. Besides, changes in mobile computing technology will require IT departments to gear up for periodical testing  and deployment  of  the mobile  applications on newer devices and operating systems on an ongoing basis adding to the IT cost.  The pressure to change the customer perception through  “cool” and "awe" is factoring  into the  reason for going mobile. Even the best of the breed IT departments struggle to build an Enterprise Mobile Strategy.  Most realizes that the immediate ROI from investment in mobile enabled services will be negligible at least for the next few years. This awareness is increasing to the resistance to change.
However,  it is the best time to get on the band wagon for long term benefits. Leading the mobile enabled service is the way to ride the wave into the future. Engaging the right vendor will make the journey less painful.  Devising an Enterprise mobile strategy is the best way to begin the journey.
The IT departments in service industries will be under pressure from Mobile technology Savvy Consumers for a long time to come.