Earlier this week, Juniper Networks, a networks services provider, unveiled the results of a study
it commissioned that examines the relationship between companies’ IT
investment and their financial performance. The survey findings will no
doubt make CIOs smile and confirm a long-held belief: Companies that
view IT as a strategic asset experience on average 30 percent higher
revenue growth than companies that view IT as a back-office function or
a general waste of time, money and resources. These companies that view
IT as strategic and perform well financially tend to possess the
following characteristics, according to the survey:
- They are more likely to adopt newer technologies more quickly than other companies.
- When purchasing IT, they are driven by productivity gains more than cost-savings.
- They have more IT projects underway at one time than other companies.
- They are 30 percent more likely than other companies to have mobile workers.
- Their businesses are highly reliant on real-time transactions and automated processes.
The research was conducted by TNS,
a market research company based in England. TNS survedy IT
decision-makers at 560 companies in North America, Europe and Asia with
revenues in excess of $100 million for their attitudes toward
enterprise technology. These attitudes were then segmented and mapped
on corporate and financial data.
From a different quarter comes another research report that’s encouraging for CIOs: Executive search company Korn/Ferry International, recently released results from its survey
of more than 2,000 executives registered within the firm’s online
Executive Center. They show that three-quarters of executives believe
that CIOs have a role to play on the board of directors. When asked if
CIOs have a role to play on a company’s board of directors, the most
popular response by executives was “absolutely” (46 percent), while
only a very small portion (three percent) of respondents stated “not at
Some encouragement to start your week.
—Meridith Levinson and Sandy Kendall