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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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Summers Predicts Job Growth by Spring

by Erik on December 13, 2009

in Information, Jobs, Markets, Recession, Uncertainty, Unemployment

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.

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Green Business is Growing

by Erik on July 28, 2009

in Alternative Energy, Economy, Sustainability, Technology

GREEN BUSINESS – It’s no secret that America is going green. Green jobs are popping up everywhere, whether it’s the technician installing solar panels on a home, the scientist researching ways to build better batteries for electric cars, or the executive looking for ways to reduce waste, eliminate unnecessary packaging, and cut costs. Job growth in this area is expected to top 50% by 2016, nearly four times the job growth for all other occupations combined, according to the federal government. And a number of Presidential initiatives, including billions in new investments in renewable energy, energy efficiency, and energy research, are likely to accelerate that job growth.

[via BusinessWeek]

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The Life Cycle of a Business

by Erik on July 25, 2009

in Interesting, Philosophy

What is a business - anyway?  As usual, Wikipedia offers a pretty good definition:  “In economics, business is the social science of managing people to organize and maintain collective productivity toward accomplishing particular creative and productive goals, usually to generate profit.”  Not surprisingly, as is the case for any highly complex system or entity, this is just one of multiple definitions.

In quantum mechanics we learn that questions like “what is an electron?” are meaningless unless one also asks “what is your purpose in asking this question?”

An electron is sometimes best thought of as a particle, and sometimes best thought of as a wave depending on what models or measurements one is after. Similarly, one cannot separate asking what a business is from how one wants to use the answer. But I am actually most satisfied with the people-centric definition Wikipedia gives, because I truly believe it is the most important one.

[via Irving Wladawsky-Berger]

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I.B.M. Profit Exceeds Wall Street Forecasts

18 July 2009 Economy

International Business Machines has long been viewed as a barometer for corporate technology spending. And its second-quarter results, announced after the close of the market on Thursday, provided another encouraging sign for the technology sector. Yet I.B.M.’s performance, analysts say, is probably an indication that the company’s strategic steps in recent years are paying off, […]

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Teenage Entrepreneurs, Building Their Own Job Engine

6 July 2009 Economy

Unemployment for 16- to 19-year-olds is at its highest rate since 1992 — at 22.7 percent in May, according to the Bureau of Labor Statistics. That is causing some teenagers to rethink their notion of work and to embrace entrepreneurship.
“This is a generation raised to believe they can do anything, and the first to grow up […]

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