IT for enterprise

Source: Technology Digital

Date :01/06/2007 12:26:21

As expectations of IT have risen, pressure on organisations to deliver has increased accordingly

As IT has become better integrated with the business and its potential to contribute to the bottom line more evident, expectations have increased, placing more pressure on organisations to deliver to meet those expectations

By John O’Hanlon

Many organisations have made real progress in improving IT management and delivery, and these organisations share some common characteristics which have been identified in Successful IT in High Performing Organisations: The impact on business growth, a recent report from Ernst & Young*. The research demonstrated that organisations that expect IT to make a strategic contribution will get more value, so it pays to set the bar high.

IT has always been complex, dynamic and challenging. But as it has become better integrated and its potential to contribute to the bottom line more evident, so expectations by everyone – the board, management, end-users, business partners, investors, customers and IT management themselves – have increased, placing more pressure on organisations to deliver to meet those expectations.

Making the right investment choices to support business growth and demanding tangible business benefits, help organisations respond to these increased expectations. Our research has shown us that not only do high performing organisations get the IT basics right – they are also constantly striving for further improvement.

What do good organisations focus on?

At the utility level, they expect continuous enhancement of their ‘business as usual’ operational service delivery – improved cost effectiveness and transparency, greater efficiencies, optimal use of technologies to achieve these, and a sustainable control environment to cope with constantly changing and demanding requirements from legislation and regulation. At the strategic level, they expect their portfolio of change programmes to deliver tangible benefits to the business, and anticipate the innovative use of technology to generate genuine and measurable competitive advantage, and opportunities for growth. How do they ensure that these expectations are met? By getting business leaders to engage, by running IT with the same degree of rigour as the rest of the business, by integrating IT seamlessly into day-to-day operations and by ensuring that the business is a key stakeholder in IT decisions and vice versa. One of the most encouraging aspects of our research was the frequency and fervour with which respondents responded to questions by reiterating they could answer only by explaining the business context with frequent reference to their organisation’s specific business objectives and priorities. 60 percent of business leaders said they view IT as strategic, and a number of respondents referred specifically to IT being viewed previously as a utility activity, but “moving much more now to centre stage” as one business leader described it.

Is it an approach that others can emulate?

We believe leading practice and the examples of good practice that we found in our research can be applied in any organisation, but if and only if, the board and other business leaders are willing to engage, and IT organisations have, or can develop, the skills and experience to step up to the plate. At every level, opportunities abound for organisations to learn from their own successes and disappointments, to learn from others, to share leading practice and to benchmark against peers. Our conversations demonstrated that organisations that expect IT to make a strategic contribution will get more value, so it pays to set the bar high.

Going Forward

In summary, many organisations have made real progress in improving IT management and delivery, and integrating IT with business objectives to deliver tangible results. These activities are not easy and many organisations, by their own admission, are not successful across the board. Successful ones however, share some common characteristics which we have identified throughout this document. Above all, our research showed that in assessing current performance levels and setting targets for improvement, organisations that expect IT to make a strategic contribution will get more value, so it pays to set the bar high when agreeing targets.

The full report can be downloaded from Ernst & Young’s website http://www.ey.com/global/content.nsf/UK/Technology_and_Security_Risk_Services