Most companies would like to be in the market-leading position of JetBlue, Dell, or Wal-Mart, all of which have used information technology to secure their respective spots in the marketplace. These companies have a relentless goal of keeping the cost of technology down by combining the best of IT and business leadership.
It takes more than a simple handshake between groups to start on the journey toward financial gains; it requires operational discipline and a linkage between business and technology units. Only recently have companies not on the "path for profits" followed the lead of their successful counterparts, requiring more operational discipline from their IT groups as well as more IT participation from their business units.
Bridging this gap is one of the greatest breakthroughs a company can make. Companies that master the art of finely tuned, cost-effective IT management will have a major advantage. Their success will force their competitors to also master the art or fail miserably. This phenomenon has already occurred in the retail and wholesale distribution markets, which have had to react to Wal-Mart's IT mastery, as one example. Other industries will follow.
This trend will change not only the face of IT, but also the future of corporate America. As world markets continue to grow, the potential gains are greater than ever. However, so are the potential losses. The future belongs to those who are perceptive enough to grasp the significance of IT and resourceful enough to synchronize business management and information technology.
PROJECT FOCUS
1. Use any resource to answer the question, "Why is business-IT alignment so difficult?" Use the following questions to begin your analysis:
a. How do companies prioritize the demands of various business units as they relate to IT?
b. What are some of the greatest IT challenges for the coming year?
c. What drives IT decisions?
d. Who or what is the moving force behind IT decisions?
e. What types of efficiency metrics and effectiveness metrics might these companies use to measure the impact of IT?
f. How can a company use financial metrics to monitor and measure IT investments?
g. What are some of the issues with using financial metrics to evaluate IT?