The New Information Agenda. Do You Have One?
The lack of trusted information is a major concern for businesses worldwide. The information agenda is a comprehensive, enterprise-wide plan for creating, delivering, and exploiting trusted information. It allows CIOs to achieve short-term tactical and long-term strategic changes. »
IBM CIO insights: Igniting Innovation By Fusing Business and IT
The disconnect between business and IT leaders is nothing new. But in a highly competitive environment, where innovation is the key to success, this lack of integration can cause companies to stagnate, lose money, and miss valuable opportunities. CIOs need to take the lead in correcting this problem. This executive guide outlines the solutions and initiatives IT leaders need to implement to help bridge the gap. This executive guide offers the solutions and insights CIOs need to take the lead in building a more innovative, more successful company. »
How are Other CIOs Driving Growth?
IBM interviewed over 175 CIOs to see how they're bringing together business and IT to drive growth and financial success. We found that organizations with high levels of integration have experienced a 9% return on investment, and a 6% return on assets. Want to learn what else they are doing? Read our Global CIO Leadership Survey. »
June 25, 2004: A successful IT/business alignment strategy increases efficiency, improves customer service, and adds to the bottom line, writes CIO Update guest columnist Shawn O'Rourke, CIO of NCCI Holdings.
Too often, business leaders perceive IT as a necessary evil whose only purpose is to achieve the automation necessary to grow the business. As a result, when it comes to strategic planning, IT is seen as a fertile ground for expense reduction rather than an investment to help grow the business.
Business sophistication and success requires development of, a healthy relationship between business managers and their IT departments for three primary reasons.
First, customers will seek interaction via technology. For example, in 2003, the U.S. Commerce Department reported that retail e-commerce sales represented $55 billion, or 1.6%, of total retail sales. A 26% increase over 2002.
Second, your business partners will likewise insist that you interact with them through technology. According to the Boston Consulting Group, electronic commerce sales between businesses represented only 7% of a $9 trillion market in 1998. By 2004, it is expected that electronic business-to-business sales will comprise up to 40% of a $12 trillion market.
Finally, your shareholders will expect more and more expense saving advantages from technology. American Express/Ernst & Young recently estimated the average cost of a traditional process transaction (buying, paying, reconciliation/data integration) at $90, while an electronic transaction costs $4.44.
As always in business, it's all about bottom-line results. Companies that derive value from their technology investment will see results -- and success -- beyond those that don't. What follows are six strategies -- three for business leadership and three for IT leadership -- designed to significantly improve and restore a healthy relationship between IT and business management in any organization.
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