by CIO Staff

What the CEO Should Be Reading

News
Jul 25, 20052 mins
Business IT Alignment

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 all.”

Some encouragement to start your week.

—Meridith Levinson and Sandy Kendall