McKinsey: Information Technology Must Be Aligned
Information technology needs to align with business goals to save on costs and increase productivity. That's the conclusion from a new study by McKinsey. The consulting firm's recent report strongly encourages top level managers to work with IT pros to truly understand technology investments and their worth. New technologies have become a powerful resource for growing firms as well and when they are deployed smartly more growth is inevitable.
The study, recently featured in Computer Weekly, points out that in the past IT pros were the ones trying to conform IT with business goals. McKinsey found that senior executives and CEOs should share this responsibility. These high level execs should work with IT pros to help lower spending. That benefits all branches of the business. If budgets are focused on the right IT projects, more money can be smartly distributed elsewhere. McKinsey found that 45 percent of large information technology projects go over budget and run past deadline by seven percent. Meanwhile, the projects don't have as much value to the company as predicted, resulting in 56 percent less value overall. Properly aligning IT can improve these percentages.
The study also found that technology like social networking and location based services are changing the pace of business. As customers expect more and vendors continue to innovate, companies must stay ahead of the tech curve to keep up.
McKinsey's findings show that IT isn't just about what IT pros want. If top level execs understand and work closely with IT pros at their organizations, there is a better chance for the firm to grow and remain at its most competitive.
This perception is applicable to midsize firms where cost is a big consideration in most, if not all, decisions. Allocating resources in a smart and thoughtful manner is a must. There's not much room for mistakes. If IT projects are deployed in an effective manner, then the company will surely attain the business value it seeks. Technologies like virtualization and cloud computing and trends like the consumerization of IT and the bring your own device movement are prime examples of how tech is infiltrating all departments within a company. True understanding among various executives can lead to a more harmonious working environment fueled by the right types of technology - and that can facilitate growth.
With so many types of game changing tech on the market, IT strategy shouldn't be left to IT pros alone. At midsize firms, where resources are tight, implementing IT projects with the greatest ease to guarantee the best outcomes calls for teamwork between IT pros and executives.
This post was written as part of the IBM for Midsize Business program, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet. Like us on Facebook. Follow us on Twitter.