Technology / Using Pest Analysis In Singapore To Look At How The Political, Economics, Social And Technology Changes Are Impact The Needs Of Information Technology.

Using Pest Analysis In Singapore To Look At How The Political, Economics, Social And Technology Changes Are Impact The Needs Of Information Technology.

This essay Using Pest Analysis In Singapore To Look At How The Political, Economics, Social And Technology Changes Are Impact The Needs Of Information Technology. is available for you on! Search Term Papers, College Essay Examples and Free Essays on - full papers database.

Autor:  anton  24 November 2010
Tags:  Analysis,  Singapore,  Political
Words: 793   |   Pages: 4
Views: 1753

The Macro Environment

Using PEST analysis in Singapore to look at how the Political, Economics, Social and Technology changes are impact the needs of Information Technology.

Political & Economy

Singapore’s GDP is on an accelerated growth beginning in late 2005 and early 2006, while the last 6 months has seen growth between 8.5% to 11%, the government is projecting a sustainable 5 ~ 7% GDP growth. This surge in business confidence is manifested in several sectors, the property market as well as the Straits Times Index (STI) is at valuation levels last seen in 1995 ~ 1996. ( )

Since Singapore is largely manufacturing-led (35% of GDP) and export driven, it is tied to global economies especially the US and regional economies such as India and China and other ASEAN countries (Malaysia, Thailand, Indonesia, Vietnam, Philippines, Myanmar and Cambodia). While there are signs of a slow-down in the US or at the least a “Goldilocks” soft-landing, the affect on Asia will not be like the 1997 financial crisis.

However, The manufacturing sector is slowly declining in its importance in Singapore as more FMCG (Fast moving consumer product) manufacturing are located to Indonesia and Thailand while High-tech manufacturing are relocated to the semi-conductor belt in Penang, Malaysia. In its place, the Financial Services is the fastest growing sector in Singapore, the growth areas are Private Banking, Consumer loans (Credit Card) and Investment banking. UBS and Deutsche Asset Management have recently announced their intention to relocate their Private Banking practice to Singapore.

Politically, issues in the restive south of Thailand and disturbances in the Mindanao province of Philippines are seen to be insulated to each country, the regional political atmosphere is largely stable. Even the ouster of ex-Prime Minister Thaksin Shinawatra and the investigation of the sale of his mobile operator AIS to Singapore’s Temasek holding has not dampened the business cooperation between Thailand and Singapore. ( ).

All this bodes well for the IT sector as companies are increasing the capital expenditure for capacity upgrades as well as technology refresh. While Singapore unit shipment volumes aren’t available, IDC expects that the overall unit volumes of hardware is expected to grow by 9.1% CAGR from end-2006 to 2011 for the while Asia Pacific region. (See Appendix for IDC projected Unit Volumes, page 82.)

Social and Technology Changes

To sustain the prevailing GDP growth rate, Singapore has had to rely on foreign talent in the past 10 years, this was accelerated since 2001, and Singapore has about 600,000 skilled workers mainly in the technology and financial services sector. (“Has Foreign talent contributed to Singapore’s economic growth ? ). This trend is expected to continue where half the workforce will be staffed by foreigners by 2034.

With this large and diverse influx, the general technology adoption has been rather sophisticated, and is comparable to other developed IT countries in Europe and North America. While regional IT spending has focused on infrastructure building, ie. Providing Disaster recovery facility, better coverage in the provinces, better uptime in networks etc, Singapore IT expenditure has focused on enterprise applications such as CRM, Financial Systems and Datawarehouse for Business Intelligence.

From to IDC Feb 2007, Top 10 predictions for 2007, (See Appendix for “Worldwide Hardware Channel 2007 Top 10 Predictions”) , three key changes / trends that are relevant to hardware vendors are:

a. Companies with mature IT will seek to consolidate disparate systems by grouping various applications into a physical system footprint or by centralizing several systems into a physical location. The key driver is to drive down operating costs, from a real estate, as well as electricity, cooling and labour cost, from the ease of use of maintaining systems from a central location.

b. Small Medium enterprise are the fastest adopters of technology, and while traditional hardware vendors have introduced scaled-down versions of their offerings to this segment, there is an increasing demand for large enterprise-type hardware requirements featuring RAS, (Reliability, Availability and Scalability). In other words, a small customer may have large requirements. This is corroborated with the IDC report that among the volume servers segment, the highest growth are the Windows high-end servers. (See Appendix for IDC projected Unit Volumes, page 119)

c. Solutions will drive the hardware business. While this is obvious, the trend is more prevalent in Asian countries where traditionally hardware has always been seen the primary driver fro sales rather than application software. The implication is clear, a successful hardware provider needs to work with application partners so that the customers will not object to paying for premium hardware if it enhance the premium application software. Conversely, a new entrant needs to be compatible and be associated with the application vendors to be at a level of parity.

Get Better Grades Today

Join and get instant access to over 60,000+ Papers and Essays

Please enter your username and password
Forgot your password?