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CEOs more aware of IT`s potential

By Iain Scott, ITWeb group consulting editor
Johannesburg, 24 Feb 2004

Eighty percent of top corporate CEOs see the quick and full adoption of new technologies as essential to growing their companies, according IBM`s latest Global CEO Study.

The survey of 456 CEOs in various industries worldwide was carried out by IBM Business Consulting Services with the intention of understanding the CEO business agenda for the next two to three years.

The study`s main finding is that revenue growth is CEOs` main priority over the next several years, a change from previous years where cutting costs was the main issue.

While cost management features as a close second on the list of priorities, most CEOs believe the cost containment measures implemented in the past two years are sufficient. Given a more positive view of economic trends, they are focusing more aggressively on growth and investment opportunities.

The study indicates that 90% of CEOs expect to transform their enterprise to become more responsive, particularly to customer demand, within the next five years, with more than half expecting to accomplish this within two years.

"The cycle of continuous reinvention and increasing specificity required to drive top-line growth is fuelled strongly by customer pull," it says. "Therefore, CEOs are focusing on issues such as cycle time and increasing 'the voice of the customer`.

"This will reinforce the CEOs` desire to ensure that new products and services are customised to specific customer needs."

Access to information

As a result, CEOs are on the hunt for vehicles to capture customer needs and preferences, as well as building the capabilities that will capture and use customer information for swift decisions.

Rapid access to information is becoming critical in this regard and CEOs are aware of the potential of technology and changing business models to improve responsiveness.

"The need to harmonise, consolidate and rationalise disparate technology infrastructures - often the heritage of not-fully-absorbed acquisitions - is now a question not limited to the CIO`s office. For nearly 80% of CEOs, the quick and full adoption of new technologies is essential."

The study also says CEOs are becoming more demanding of their IT function.

"We are not satisfied with the progress of IT over the past three years," said a CEO in Europe. "It has not been ambitious enough in the direction and speed of its development. It has been too conservative and needs to take a far more radical approach to changing its strategy and vision of how to contribute to the business."

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