IT Strategy

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The Real Savings From IT Outsourcing

Research suggests that outsourcing IT can help reduce sales expenses and general and administrative costs, which are often four to five times IT costs. Managers need to take a balanced approach to their investments in internal systems and outsourcing to reap greater benefits in terms of cost savings. Analyzing the impact of outsourcing on non-IT costs and formulating strategies for maximizing the savings on these expenses can help companies get the most out of outsourcing spending.

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Video: What Digital Transformation Means for Business

  • Interview
  • Read Time: 1 min 

New technologies are changing the nature of business in powerful and unpredictable ways. Executives need to know which technologies to adopt and how to leverage them. Kim Stevenson, Intel’s chief information officer, and Mark Norman, the president of Zipcar, discuss how they manage for technological change with Andrew McAfee, a principal research scientist at MIT’s Center for Digital Business and Didier Bonnet, senior vice president and global practice leader at Capgemini Consulting.

Image courtesy of Flickr user KJGarbutt.

Finding Value in the Information Explosion

Today’s companies process more than 60 terabytes of information annually, about 1,000 times more than a decade ago. But how well are companies managing the data and capitalizing on the opportunities it presents?

To answer these questions, seven IT research centers studied data-related activities at 26 corporations and large nonprofit organizations. The research shows that while the IT unit is competent at storing and protecting data, it cannot make decisions that turn data into business value.

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E-Procurement

During the e-boom of the 1990s, academics, consultants, executives and investors alike claimed that e-procurement, and its increasingly central role in supply-chain management, would revolutionize how future business-to-business practices would take place: Efficiencies would be improved and procurement costs reduced; the flow of information along the supply chain enhanced; strategic

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Management by Maxim: How Business and IT Managers Can Create IT Infrastructures

Creating a business-driven IT infrastructure requires that executives thoroughly understand their firm’s strategic context. By formulating a series of business and IT maxims — short simple statements of the business’s positions — managers can identify the IT infrastructure service suited to their company. Organizational, political, cultural, and reward system issues, as well as a lack of IT leadership, may form implementation barriers.

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Develop Long-Term Competitiveness through IT Assets

Assessing the value of information technology (IT) has never been easy. Delayed benefits, unintended uses, business changes, and hidden support costs inhibit meaningful evaluation of individual IT investments. This was true when most investments were focused on the support of a single business process or functional area.

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Eight Imperatives for the New IT Organization

In an overview of the future role of the IT organization, the authors examine the business and technological changes that are effecting change in many IT units. They cite eight imperatives in which IT organizations must excel in order to succeed. Additionally, they examine the evolving key of IT managers: ensuring that all line managers understand the potential of IT and how it can be used to implement business strategies effectively.

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The Decline and Rise of IBM

IBM is making a comeback. Although many observers had counted the company out — “It’s a dinosaur, an implosion, a wreck,” various commentators said — its revival was probable, even predictable, because cycles of decline and revitalization have been the company’s pattern through many decades.P

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