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Is it a good idea for CEOs and CFOs to push their CIOs to start looking for
process improvement methods, specially those that lead to reduced IT spending,
both opex and capex? Yes and no.
The fact is that after this dramatic slowdown the world is going through, any
spending, whether on IT or sales incentives, is going to be scrutinised and
questioned much more vigorously than before. The slowdown has forced everybody,
including the CIOs, to be more innovative, use resources more carefully, and get
better deals from their suppliers.
The irony however is that on one hand there is pressure on CIOs to cut IT
costs and on the other, heads of sales, marketing, and other revenue driven or
customer facing divisions are forcing CIOs to leverage IT for faster and better
delivery of go to market, sales support, and customer support and strategies.
Therefore, experts believe that the forced change with the idea of cutting
costs and corners, may cause more disruptions, specially in the longer term.
According to research firm Ovum an, agile and lean approach will bring some
efficiency in IT systems, and software implementation will take too long and is
complex. And it is possible that by the time CIOs discover this, and start
learning to manage this change, it could be a long cycle.
It is quite possible that by the time CIOs get their act together, times
might have changed for the better, and priorities shifted from cost cutting to
something else. At that point, organizations which went for drastic changes
might be at a disadvantage compared to those who stayed their course.
Please do not assume that after this CIOs can just walk into the CEOs
chamber, explain the perils of cutting IT, and get all IT expenditure approved?
Its not so simple. Cash crunch is for real, reduced demand for most products
and services is for real. What will surely help is if CIOs can team up with the
head of sales or customer support, or other key internal users, and let them
tell the CEO they need IT for a single but big reason. For beating competition
by grabbing and retaining business in the immediate term. The CEO will surely
agree, maybe in phases.
In fact, quite a few IT heads are breaking down their big IT plans into
smaller pieces. The advantage is that approvals are faster, and risks are
reduced. And mid course corrections or changes are easier.
Jumping on the Cut IT bandwagon maybe be trendy and easy. Whether it is a
good decision or bad in the longer term, nobody knows for sure. Caution is
therefore strongly advised.
Ibrahim Ahmad
ibrahima@cybermedia.co.in Page(s) 1
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