Information Systems became a top priority for GE, the company I used to work for as declared by it's then CEO Jack Welch in the 1995 annual report. Even, Benetton adapted a central program which connected all the retail stores with headquarters. This enabled the organization to identify the hottest fashion items, for which production can be stepped up in order to replenish inventory or meet the incoming demand for it.
The problem is that the managers of certain companies are still fretting over the steep price which they have to incur for implementation of I.T. It is essential that I.T. not only is seen as an enabler but becomes a part of business plans. The key is for I.T. to be seen as an engine for growth and not as a frustrating cost center for executives.
Best way to do it is to make a technology proposition a part of a Business Requirement and let the operations dept. of an organization own that initiative as well as highlight the profits of the same. It sounds simple but even Mr. John Donovan, a professor at MIT's Sloan School of Management suggests that bridging the technology and operations function is not easy at all.
A Big Question - Who will run the show?
It should be someone from the business side but then taking the I.T. people out of the picture doesn’t make sense. Ultimately, the I.T. people are the ones who will help the executive distinguish between pipe dreams and achievable goals. The equation should be well balanced depending upon the requirements of the business. One side of the equation being the business aspect and the other being I.T.
The unrealized and unseen advantages of I.T. in the corporations.
Email - Effective way of communication which helps in saving cost by cutting down on phone calls, facsimiles etc.
Intranet - Harley Davidson Inc., the motorcycle manufacturer incorporated an intranet system which allows the headquarters to keep a link of over a 1000 dealers they have across the world. So, as to supply as per demand which comes in from the customers visiting the dealers. In turn, this helps them in cutting out on their inventory maintenance charges.
Internet - It can help a Czech company to sell their product in Japan and make a local company become a global organization.
Mr. Callahan a vice-president of Booz-Allen says, ‘ I.T. on it’s own cannot change the course of a company but it’s intimate integration into every aspect of corporate strategy can.’
1. Ways one can look at to Integrate I.T. with Business Strategy.
2. Draw I.T. leaders into company’s elite decision making circle.
3. Improve communication between business head and the I.T. head.
4. Consider appointing an I.T. head with business background.
5. Adopt a mixed team comprising business background and technical background people.
6. I.T. should be presented as a corporate priority.
7. I.T. should be measured by profits and not cost for which it should be seen as a revenue driver and not a cost center.
1 comment:
Very nice crisp article - I have just started my foray into both Business and IT on a professional level and I think you had some good insights.
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