I’m a bit surprised that this is just beginning to be a trend… but nevertheless…
A recent survey of business leaders, conducted by the Economist Intelligence Unit and commissioned by Accenture, revealed what those IT and business leaders are discussing in their closed-door budget meetings. The results hint at one thing when it comes to IT: strategy.
via BlueLock - IT to go “strategic” in 2010.
In fact, when discussing technology and the role of IT in an organization, strategic partnerships with the other functional areas should be a primary goal, as technology can directly influence behavior in the organization and more importantly revenue streams.
For example, technical oversight via systems processes can ensure proper and legal behaviors of the staff, integration between business models can influence collaboration and timeliness, and an IS&T strategy can ensure that the functional roles and tactical behaviors of employees are focused on clear value added jobs and responsibilities.
IS&T can also affect customer behavior and employee attitudes towards customers when they have a clear view into each interaction between the firm and those respective customers through proper CRM implementation and how the customer has responded through business intelligence and analytics.
Proper implementation and strategy of information technology and systems is one of the primary strategic goals that any global Fortune 100/500 firm can implement in order to ensure sustained competitive advantage, even if they are focused in other areas for profit.
One reason why this may not have been a trend until recently, is I that it can be incredibly difficult to identify the causal relationship of IT to behavior in an organization and most if not all will be anecdotal. That can cause problems for many ‘quants’ out there.
I would guess — while I believe these systems can and do impact tangible returns like an increase in revenue and a decrease in expenses — there is really no way that you can eliminate (at least in a real business climate) the variables that affect behavior. But with enough anecdotal evidence, you can piece together a proper idea of the effects of information technology on said business climate.
If we look at a case in which an industry that is primarily driven by other means, such as the Banking sector, one can’t imagine an environment where technology wasn’t a strategic asset. Banks certainly can’t focus on their trading and asset management without a proper IT strategy, and it needs to go to the heart of the organization so that it influences individual behaviors and roles. Otherwise, focusing on any other opportunity or strength is in vain, and the firm is destined to fail regardless. This can be related to any number of industries including the energy sector.
And when they fail at IS&T it can be disastrous for the firm, and should be noted when determining any future strategy.
It should be noted that unemployment “stabilized” in November and if the trend continues, we should see the rebound starting to take place.
Lawrence H. Summers, President Obama’s top economic advisor, predicted on Sunday that by the spring the ranks of working Americans will start to grow once again.
via Summers Predicts Job Growth by Spring - NYTimes.com.
Jobs should continue to be lost, but at fewer rates, and at some point, the “leaner” firms will have to refill the spots that they lost due to the shrinking economy. When that happens, as simple logic tells us, job growth will hit the “zero point” and be positive thereafter.
It may not be much consolation for those who have lost their jobs, or those that have not been able to find work after graduation or being unemployed, but the economic situation has forced forward thinking firms to focus on sustained competitive advantage and ensuring costs are in line with their offerings. Peter Drucker would have recommended firms focus on innovation and investment in the future within these “uncertain times,” and those that have, will be poised for growth and ultimately the creation of jobs.
I would expect, as might seem like common sense, to see larger more innovative firms already starting to hire, and more staid industry leaders to follow suit when economic indicators are more favorable.
And this should come as welcome news to many.
If technology and systems didn’t come so naturally, I really believe that I would have become an economist. I just find it fascinating. The “business information systems” major was such a perfect fit for my abilities, that I didn’t really think twice about selecting it when I was choosing my major at Lehigh. But, as I continue to read up on the current economic climate, work in an industry where consumer confidence greatly matters to our offerings, and I uncover little gems like this article by John Tierney, I realize that my interests run far deeper than technology and design. I wonder if I should have studied more micro and macro economic principles than the 4 semesters I ended up with…
“Maybe, sometimes, old-fashioned economics is just about right,” Dr. Shayo says. “Maybe when it comes to food, people do have reasonably stable preferences. Some people like shrimp and some don’t, even if it’s worth a lot of money.” [via NY Times]
Check out the article. It’s a rather interesting read about consumer preferences and how price affects those preferences. Oh, how I fondly remember those indifference curves and plotting consumer preferences…
Nakheel PJSC’s possible non-payment of its Islamic bond due tomorrow will trigger defaults on two other securities, bringing the total of affected securities to $5.25 billion, bond documents show. [Bloomberg]
U.S. Commerce Secretary Touts Climate Change Policies — Commerce Secretary Gary Locke tells delegates at the United Nations Climate Change Conference in Copenhagen that nations must stop subsidizing the production and consumption of fossil fuels and create incentives for innovative solutions to clean energy. [eWeek]
Google Unveils Deforestation Monitoring Technology — Google debuts a new technology at the climate change conference in Copenhagen that helps scientists track global deforestation. [eWeek]
Google Phone May Be in Works — Google appears to be preparing to market its own smartphone, a move that would intensify the company’s rivalry with Apple, whose iPhone dominates the high-end smartphone market in the United States. [NY Times]
Household wealth has risen for two straight quarters, providing some much-needed relief for struggling US consumers. The value of American homes and investments rose during the third quarter, while debt levels fell modestly, the Federal Reserve reported Thursday. [CS Monitor]
Interest Rates Are Low, but Banks Balk at Refinancing — Banks that once handed out home loans freely are now imposing such stringent requirements that many homeowners who might want to refinance are effectively locked out. [NY Times]
For whatever reason, consumer sentiment in December has rebounded to its highest level since September, according to a preliminary report Friday from the Reuters/University of Michigan Surveys of Consumers. December’s reading of 73.4 was just a hair below September’s 73.5, which was highest level this year. The surveys’ measure of current economic conditions rose to 79.1, its best showing since March 2008. [CS Monitor]
In Shift, U.S. Talks to Russia on Internet Security — The United States has begun talks with Russia and a United Nationsarms control committee about strengthening Internet security and limiting military use of cyberspace. [NY Times]
According to a study, North Americans have been staying up late to do their Internet surfing this summer, so late that the peak usage for the whole day has been at 11 p.m. Eastern time. That appears to be a shift from previous years, when most Internet activity was in the daytime. [CS Monitor]
Wind farms don’t affect property prices — SOME homeowners consider a wind farm about as appealing a neighbour as a pig farm. Contrary to popular belief, however, it seems they have no effect on house prices. [New Scientist]
