The results of a recent McKinsey’s global survey called “IT in the New Normal” measures executives satisfaction with IT performance. This survey finds today’s CIOs and their teams in a tight spot.
Many expect IT investments to grow in 2011. Recession or no recession, corporate and IT leaders continue to see a key role for IT, especially in regard to achieving efficiencies across the enterprise.
The results of a recent McKinsey’s “IT in the New Normal” global survey, measure executive satisfaction with corporate IT performance. This survey finds today’s CIOs and their teams in a tight spot.
The survey results tell of cost-conscious corporate leaders that, while continuing to reduce spending and worry about uncertainty, still expect IT to:
- reduce risks,
- deliver ideas that lower costs, and
- strengthen the company’s competitive edge.
The CIOs, long accustomed to doing more with less, must again find ways to demonstrate the unique value their teams bring to budgets and boardrooms.
The survey affirms the continuing importance of IT to the company’s strategic success, despite the recession. CIOs are feeling greater pressure to deliver ever increasing levels of efficiency in the downturn, but overall satisfaction with IT organizations remains high. In addition, most survey respondents foresee an increase in IT investment, because they are applying IT to solve problems across the enterprise. Meanwhile, as technology-related disruptions continue to affect the business, boardroom executives persist in pushing for closer integration between business units and IT.
In this fast moving climate, many CIOs are achieving closer integration between business units and IT by adopting a Service Provider approach in describing and costing the IT organization’s capabilities. This approach is working because boardroom and business executives don’t immediately understand the value of servers, routers and network technology.
They do understand the value of services such as messaging, applications, or data access. Even budget discussions benefit from this approach, focusing on funds required to maintain agreed service levels of specific service capabilities, rather than on details of equipment and personnel.Tags:ABC, Capacity Based Costing, Charge Back, COp-S, IT Cost Optimization, IT Cost Optimization Service, IT Cost Reduction, IT Financial Management, IT Financial Management Dallas, IT Financial Management Texas, IT Service Management, Service Catalog, Showback, TCO, Technical Service, Total Cost of Ownership