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IT to go “strategic” in 2010

by Erik on December 14, 2009

in Business Logic, Enterprise Systems, ROI, Technology

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.

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Business Round Up

by Erik on December 4, 2009

in Economy, Information, Jobs, Markets, Recession, Technology, Uncertainty, Weekly Roundup

Job Drought in U.S. May Be Near End as Temporary Help, Working Hours Surge  — The worst U.S. employment slump in the post-World War II era may be about to end as companies hasten to hire temporary workers and boost hours, according to economists such as John Ryding and Zach Pandl. [Bloomberg]

G.E. Makes It Official: NBC Will Go to Comcast — After nearly nine months of negotiations, Comcast, the nation’s largest cable operator, announced an agreement on Thursday to acquire NBC Universal from the General Electric Company. [NY Times]

Geithner Sees `Progress’ in Job Market, Unemployment Below 10% in a Year  — Treasury Secretary Timothy Geithner predicted the U.S. unemployment rate probably will be lower than 10 percent in a year and said the economic recovery is moving closer to a period of job creation instead of losses. [Bloomberg]

World’s tallest building, Burj Dubai Tower, opens as a golden era closes — Dubai Tower opens next month. But will this crowning jewel also be the city’s high watermark? [CS Monitor]

Dubai Loses `Sovereign Halo’ as $3.5 Billion Nakheel Debt Deadline Looms  — Sheikh Mohammed bin Rashid Al Maktoum wanted to turn Dubai into a global hub for finance and tourism, the next London or Hong Kong. To help execute his vision, the ruler relied heavily on Dubai World, the web of state-owned companies that includes everything from DP World, which operates 49 ports across the globe, to property developer Nakheel to investment arm Istithmar World. [Bloomberg]

Celgene Cancer Pill to Triple Sales on Threat to J&J — Celgene Corp. can more than triple sales for its best-selling cancer pill Revlimid on new data that may convince doctors to choose the drug as a first option over Johnson & Johnson’s intravenous medicine, Velcade. [Bloomberg]

Sony Chief Pushes Online Plan for Recovery — Sony’s chief executive, Howard Stringer, has a grand idea: an all-in-one online network that pipes Sony’s films, music, games and other content to its TVs, Walkmans and PlayStation game machines. [NY Times]

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