08 Oct Gartner to IT execs: Be business leaders
Orlando, Fla. – Information technology executives were told at Gartner Symposium/ITxpo 2007 that in these times of economic uncertainty, that it is time to take IT to the next level.
Gene Hall, CEO of market research and consulting firm Gartner, told the audience of over 5,000 IT professionals that despite market conditions, CIOs and IT leaders remain optimistic. Seventy percent of CIOs surveyed by Gartner said they expect IT budgets to grow by about 3 percent in 2007 and 5 percent in 2008, but economic conditions could change that projection quickly.
This increase in IT spending might prove challenging for IT professionals as CEOs, board members and shareholders continue to call for innovation and increased revenues and profits.
Peter Sondergaard, Gartner’s senior vice-president of research, said that there are significant challenges caused by economic climate, including the housing market, increases in fuel prices, declining dollar exchange rates, slower GNP growth, and declining CEO confidence.
How will this impact CIOs and IT professionals? “84 percent of CIOs believe they need to make radical changes to drive growth,” Sondergaard said.
For now IT executives expect IT spend to increase, but will that be the case in three months? Business plans prepared in June might not represent business conditions in November 2007. Garter recommends that CIOs prepare two IT budgets, one for growth and one if we enter a deeper recession.
As we near the end of 2007 CIO need to explore and exploit changes and develop new ideas, processes and innovation projects that drive growth.
“You must be prepared for changing business conditions that could have impact on 2008 IT spending” Sondergaard said.
Gartner says that IT professionals will need to do a better job of driving IT to power their business in many ways, such as customer acquisition, streamlining business processes, ensuring compliance, risk mitigation, building an innovation and agile organization, and improving workforce productiveness.
Maximize performance and competitiveness
Gartner analysts say that business process management will drive agility and speed. This will require highly responsive systems and people will need to open to change.
Gartner’s message to IT executives is: “Be a business leader first and technologist second.”
• Gartner 2007: Abandon “generic IT” and grow the enterprise
• Worldwide IT spending to break $3 trillion in 2007, says Gartner
• Fusion 2007: Innovation drives productivity in post 24×7 world
• Fusion 2007: CEOs say bar is raised for CIOs