News: Firms must realise more “IT value”

In the survey, the overwhelming majority (81%) of senior managers, particularly CEOs, agreed that IT made a significant contribution to their organisation’s differentiation strategy. Only 40% stated that e-business and the Internet formed a key part of this strategy, showing a practical focus on this channel and the related technologies as merely supporting their businesses’ strategy.

Members of the management team differed in their views about organisational differentiation and how to measure IT’s contribution to corporate value.

27% of all CEOs identified “service” as their key differentiator, while, in contrast, FDs and IT directors most consistently identified price as their key differentiator (21% and 19% respectively). Across all respondents “service” was the most frequently cited measure of business benefit of IT, followed closely by cost reduction, profit and business process improvement.

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