Chief technical officers (CTOs) are very familiar with the need to achieve measurable return on all IT investments. So there is a definite temptation to go for quick technology fixes that look good on the year`s bottom line. But, argues Henry Adams, country manager at InterSystems South Africa, it is critical to make the best decisions for the longer term by identifying and implementing solutions that fit the organisation`s overall business strategy.
What we are talking about here is, in effect, two-tier thinking. It is not a new concept, but it is one that is easy to lose sight of when confronting in-your-face challenges. CTOs that do combine strategic perspective with the reality of reporting positive near-term results can get two-tier results as their payback.
Case in point: Less than a year into Carrie Todd`s tenure as CTO with one of the largest financial institutions in the US, 1st Advantage Federal Credit Union, the company was facing what was rapidly becoming a crisis.
Internally, Todd was in charge of ensuring a secure, reliable, efficient network-processing environment for just less than 200 employees who were direct information users.
Externally, the company`s IT organisation was responsible for delivering and maintaining electronic self-services delivery channels such as home banking, bill payment, ATM, and debit and credit card processing for 55 000 credit union members.
In an increasingly competitive financial services market, the external business electronic delivery components loomed largely as key to the growth of 1st Advantage. However, the immediate problem was closer to home. Simply put, the new Compaq server that was the hub of the network just could not support 1st Advantage`s business flow.
To get information distributed from the server to the end-user in the formats needed to do business, the IT staff was working round-the-clock shifts and, even then, information delivery delays to frontline employees was causing customer lines to form on key business days.
The quick fix to solve the immediate problem was to add another server. But the inevitable expense and delays with such a purchase had a negative impact on strategic plans to expand transactional input points for the network and on future additions to Web delivery channels for consumer services.
Instead, 1st Advantage opted for a software-based approach and selected InterSystems as its vendor partner. By leveraging the RAD features of InterSystems` high performance Cach'e database, the company was able to integrate the technology into its information system in just two months at a cost of $30 000.
Data extraction and analysis processes that initially required as many as 14 hours now can be accomplished in as little as 20 minutes, and users are handling their own reports rather than depending on IT resources. Also, 1st Advantage extended the life of its server by several years without compromising on performance.
The $250 000 that would have been required for that purchase can now be invested in building new applications that are key to the credit union`s market success. That is the strategic business return on investment (ROI).
Instead of merely acquiring a new piece of hardware, 1st Advantage now has a technology infrastructure that can support the new electronic delivery channels that its members demand, as well as support growth resulting from new application implementation.
Since the company moved to Cach'e database technology, transaction volume has increased about 40% from 500 000 to 700 000 transactions per month and most of the growth has come from new channels such as Internet banking and debit card authorisation.
Share