Survey data reveals more companies bringing technology leaders into business strategy discussions
Corporate executives are more aware of the value of IT in terms of business strategy and competitive advantage, according to a recent survey, which found more CEOs bring their CIOs to the table for business planning discussions.
In a recent survey of nearly 75 North American CIOs and other senior IT executives, 83% agree that their company’s IT strategy is developed collaboratively between business and IT operations. In addition, 79% of those surveyed by management consulting firm McKinsey & Company said their IT plans are shaped by a close integration of IT and business strategy. The results prove companies are working toward advanced business and IT alignment, which can provide “significant value,” the firm concludes.
“IT organizations that have mastered the art of business collaboration may be poised to move to a more advanced form of strategic planning, a level at which they can truly show the business how, where and when to use IT as a competitive weapon,” The McKinsey Quarterly report reads.
Another indication of the evolution of the role of IT within business is how many CIOs now report directly to the CEO. According to the survey, 44% of CIOs polled report to the CEO, while another 42% work directly with the COO or CFO.
Yet McKinsey & Company analysts report there is still work to be done to make IT a competitive advantage at any company.
For instance, less than two-thirds of respondents said that technological innovation shapes their strategy, and just 43% reported they are effective at identifying areas in which IT can add the most value to the business. These numbers show that IT executives could have a difficult time matching innovation with business goals, the report says.
At the same time, a little more then one-third of respondents said they are more effective at introducing new technology than their competitors, while just 46% said they consider IT innovation at competitors when shaping their own strategies.
“CIOs must be more attuned to the way technology is being applied throughout their industry and related markets if their companies are to use innovation to create a competitive edge,” the report reads. “To use IT as a competitive weapon, a company must look beyond the annual planning cycle and take an integrated, midrange view of technology, competitive developments and the strategic actions required to address them.”
