Elearning - June/July 2008 - (Page 14) Trendlines I.T. Budget Getting Squeezed? For CIOs who are in the midst of negotiating their budgets or feel they are being squeezed by CEOs looking to cut I.T. costs, the data reported in Accenture’s second global IT performance benchmark research may help them fight back. “Many of the findings in our survey of nearly 300 global 2000 equivalent enterprises can be used by CIOs to state their case for the organization’s continued investment in I.T.,” says Bob Suh, Accenture’s chief technology strategist and the executive who headed up the study. “CEOs need to get real about investing to catch-up, and CIOs can help them justify this decision.” According to Suh, the survey provides CIOs with ways to protect their I.T. budgets: Customer-facing systems were found, according to the Accenture research, to be among the lowest scoring and the poorest performing. In contrast, financial systems have scored the highest. Businesses defined as “high performers,” who allocate the same proportion to customerfacing applications, have invested in new technologies and in integrating customer applications that have met 90 percent of their business needs. Cutting the fat from today’s already lean I.T. budgets cannot be done easily. The 2007 study showed that the overall allocation of discretionary and non-discretionary spending has barely budged compared to 2005. The study also shows that as an organization embarks on new technology investments, it should expect spending more of its time in I.T. operations as its optimized I.T. environment has been disturbed. The study shows that for the first time, enterprise technology has fallen behind consumer technology. The best technologies are used at home first, and the company is struggling to keep up. Consumers expect more and are savvier than ever before, and they can now vote with their mouse clicks. People responsible for maintaining legacy systems are headed toward retirement. Research shows that the oldest modules of front office systems driving profitability are among the oldest in an organization’s portfolio. They average over six years old (with some surviving code written in the 1970s) and have survived well past their expected lifespan. To access the full report, visit the Website http://www.accenture.com/Global/Research_and_Insights/By_Role/HighPerformanc e_IT/CIOResearch/HPIT2008.htm. Losing Influence with Customers? 1 2 3 4 5 According to a new whitepaper entitled “Customer Relationships in a Web 2.0 World,” companies are losing influence with their customers. As customers face an increasingly complex and fast-changing world, they want help. However, trust levels in companies and their agenda are low. Customers are using Web 2.0’s social media to get insight and information from customer-generated content. “Changing business dynamics are contributing to a growing disconnection between what business practices are serving up and what today’s customers value,” says Managing Partner John I. Todor of The Whetstone Edge, LLC. “And this is negatively affecting business’s role in purchase decisions. “The net result — businesses are losing influence over customer decision making, and their products are more rapidly becoming perceived as commodities.” Senior Partner William D. Todor adds, “Customers are increasingly relying on social networking and social media to establish interactive and trusting relationship with other customers. These relationships help customers make purchase decisions and, more importantly, they help them learn how to extract the greatest amount of value from products.” This white paper lays out the challenges and the rewards that accrue to companies who overcome these challenges. It spells out a clear framework for shifting the focus of the relationship and building trust essential to relationships that customers’ value. It discusses how companies can embrace the networked nature of a Web 2.0 world and regain influence with customers both online and in their physical world interactions. This white paper can be downloaded free by visiting the Website www.thewhetstoneedge.com//web2.php. 14 June/July 2008 Elearning! http://www.accenture.com/Global/Research_and_Insights/By_Role/HighPerformance_IT/CIOResearch/HPIT2008.htm http://www.accenture.com/Global/Research_and_Insights/By_Role/HighPerformance_IT/CIOResearch/HPIT2008.htm http://www.thewhetstoneedge.com//web2.php
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