News
IT Matters - again...
18 January 2012
The hoped-for return to growth, following the financial crisis of 2008, has yet to become established. But despite or possibly because of this, businesses are spending again on IT. An autumn 2011 report by the CBI1 shows that in the year ahead, many firms are planning to invest more in IT, in large part by scaling back on other spending such as land, buildings, vehicles, plant and machinery. Across the private and public sectors, technology and its ability to transform business continues to be at the forefront of board agendas. In times of uncertainty, IT matters again.
Boards and leadership teams are challenged today to secure and advance their business, and to deal with multiple factors such as tighter credit markets, less certain supply chains, more demanding customers, and the need to operate on a global scale. So whether it is to promote growth, be closer to customers or to control costs, IT has a key role to play.
There is a renewed focus on using business transformation and Finance Transformation projects — underpinned by IT — to outperform the competition through more efficient processes, launching differentiated products or creating innovative new business models. Whether it’s a supermarket transforming its supply chain or a building society looking to launch insurance products, these larger scale programmes fundamentally rely on successful IT solutions. Of course opportunities to truly innovate take different forms and not all are initiated by IT; a game changing product for one company might be an acquisition for another.
However speed & effectiveness of delivery remain paramount whatever the driver or the lever; such as ERP integration or analytics deployments. There is no latitude for some of the problems thrown up by IT in the past: ineffective projects, missed deadlines, or cost over runs. Successful Finance Transformation delivery requires consistent, visible board level sponsorship; the support of specialist suppliers; & critically talented project managers and business analysts who understand the challenge and context.
Excerpts / paraphrases from a recent Deloitte MCS Limited report on IT investment 2011
1 CBI Financial Services Survey, October 2011, http://tinyurl.com/itmatters1
