By Andy McCue, 29 January 2004 17:30
NEWS Almost two-thirds of companies have no strategic IT plan and have underestimated the cost of implementing major new IT systems, according to a survey of over 600 finance chiefs of US organisations.
The worrying results of the sixth annual Technology Issues for Financial Executives survey, carried out by CSC and Financial Executives International, suggest that in many corporations IT remains as isolated as ever from the boardroom and overall business strategy.
Only seven per cent of respondents claimed to have an IT plan fully aligned with their corporate strategy, but Eugene Lukac, partner with CSC's consulting group, told silicon.com that CFO awareness and understanding of the importance of IT is actually increasing.
"It is getting better - it was worse last year," he said. "Companies realise more and more the importance of an IT plan. The role of IT in organisations is only growing and it deserves more boardroom attention."
The survey reveals the importance of a strategic IT and business plan with companies who have one twice as likely to have high returns on investment in technology than those who don't.
Enterprise resource planning (ERP) projects were also covered in the survey, with 40 per cent of CFOs saying ERP rollouts took longer than expected and 55 per cent admitting it cost more than expected although three-quarters still rated it as a success. Lukac said this is because those factors should not be the only measures of success. "It doesn't mean it [the system] is not doing what they thought it would."
CFOs are also worried about correctly identifying the appropriate level of security for information and electronic applications. The growing dependence on, and associated risks of, computerised and automated systems was cited as a critical or important concern by most of the CFOs and half of the respondents said they were highly concerned about growing IT security expenditures.
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1. Brian Catt
IT enables business process development on the infrastructure, without which the business will stop dead and for which it depends for competitiveness. So this is utter rubbish bred from ignorance and/or sensationalised reporting.
However its true that IT should enable and support business improvement, not be applied because its there as a "Kind of Magic" by IT Druids. But his is just a report on semantics, come on.
We all know how unimportant it is when the CEO's reports and e-mails stop coming.......just use FUD in Finance when the infrastructure needs an upgrade, "at current rates of data and transaction volume growth I can no longer guarantee the timely delivery of basic systems" should get it. An increasing number of well placed delays to the CEOs no mission critical comms backed up with readily available memos forecasting the problem to the CFO should get it.
They're just doing brutish "wait till it breaks" CFO management and don't want to learn - it distracts them from making sure their exit packages and quarterly bonuses are maximised. Fight back with similar tactics. Don't get caught.