| By Roger Strukhoff | Article Rating: |
|
| July 20, 2009 06:15 PM EDT | Reads: |
1,996 |
You're in a squeeze. How things ultimately shake out is not relevant right now, because you need to act right now. Work still needs to get done, systems need to stay running, and you must continue to keep pace with your competitors.
The analysts are projecting enterprise IT spending in 2009 to range from minimal growth to declines. Yet companies should "not wait for signs of a return to growth to begin planning for business growth," according to Gartner analysts at a recent symposium.
"Unlike the (days of the) post-dot.com era-where IT was perceived as wasteful-organisztions now view IT as a way to transform their businesses and adopt leaner operating models," said Gartner analyst Peter Sondergaard. "IT leaders that are called on to reduce 2009 IT spending should do so in a way that will not impede the organization in the future."
So IT budget is not going away. You know that you can still can get it. But how, and how much? What strategies and tactics can you take to get the IT budget you need in a tight environment?
Underlying any answers to these questions is the principle that solutions to the global economic mess must always, to some degree, return to IT.
It is IT that will bring efficiencies to your organization, and it is IT that will keep you in touch with customers, analyze their needs, and act upon those needs.
Examples spring to mind. Specific company names cannot be mentioned because companies are insanely protective of revealing their secrets to competitors-yes, IT does still matter.
But it is worth noting that over the past several months one can find documented evidence of achievements such as these two:
A major tire manufacturer effected a 5% increase in sales simply by lowering its stockouts. This also produced a 20% reduction in inventory, and an increase of 22% in its service levels.
A household goods conglomerate also focused on stockouts to bring enormous change to its supply chain costs. Invoice deductions fell 45%, products reached shelves more quickly. Now, 80% of company orders are automated through a new B2B purchasing process.
Additionally, you'll find real-world anecdotes from a major entertainment CEO whose company can now "run promotions without having to retrofit everything," a telco CIO who has built "a bridge between disconnected islands of information," and another CIO from the transportation business who effectively tracks "hundreds of millions of shipment events as they move through our system." Keep that word "events" in your mind; it will occur later in this article.
And never forget the quantum leaps that are always achievable even in tough economic times. Look to documented examples of trading analytics now being performed in 5 seconds, compared to 30 minutes in the past. Or 15-minute supply chain updates, compared to an industry norm of 1-day not so long ago.
Data warehouses are now being refreshed in a day instead of a month. And certainly you're aware that new phones are now activated within the hour, rather than the days it (annoyingly) took in the past.
Published July 20, 2009 Reads 1,996
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.
About Roger Strukhoff
Roger holds a music degree from Knox College, studied writing at UC-Berkeley and business at Cal State-East Bay. He's been in Silicon Valley far too long, but tries to stay relevant here and at www.twitter.com/strukhoff
- Ulitzer’s Amazing First 30 Days in Public Beta
- Will Ulitzer Dominate News Content on The Web? -Gartner
- Building Private and Hybrid Clouds with Ubuntu 9.04
- Is Cloud Computing Like Teenage Sex?
- Ubuntu-based Open Source Linux Mint Tests KDE Version
- Ted Weissman and Lois Paul & Partners PR Firm
- Sun Upgrades VirtualBox
- Should Developers Care About Cloud Computing?
- SOA, BPM, CEP: Getting IT Budget in a Tight Economy
- Free the Data: eGov and Open Standards
- Ulitzer’s Amazing First 30 Days in Public Beta
- Initial Thoughts on IBM Acquisition of Sun Microsystems
- Amazon Fiddles with Utility Pricing
- Will Ulitzer Dominate News Content on The Web? -Gartner
- Why an Application Grid?
- Building Private and Hybrid Clouds with Ubuntu 9.04
- Sun CEO Jonathan Schwartz Scopes Out Future for Sun's Cloud
- Sun CEO Reviews Company's Prospects for 2009-10
- Ulitzer Responds to Published Reports
- Is Cloud Computing Like Teenage Sex?
- The i-Technology Right Stuff
- Linux.SYS-CON.com Exclusive: Linus Discloses *Real* Fathers of Linux
- After Ubuntu, Windows Looks Increasingly Bad, Increasingly Archaic, Increasingly Unfriendly
- Linus' Top Ten SCO Barbs
- Netscape Co-Founder's 12 Reasons for Growth of Open Source
- A Closer Look at Damn Small Linux
- Introducing "Cooperative Linux" - Linux for Windows, No Less
- *POINT - COUNTERPOINT SPECIAL* What's Wrong with the Open Source Community?
- Linux.SYS-CON.com Exclusive: What Would UserLinux Look Like?
- i-Technology Viewpoint: The New Paradigm of IT Buying





































