Friday, May 14, 2010

The power of IT reaches far beyond the technology itself

Recently I spent some time reviewing Microsoft’s materials on Business Productivity Infrastructure, and I came across this statement:

IT averages only about 5% of the total cost in a business. Shrinking IT costs by 50% will generate fewer savings than cutting business operations costs by 3%. Thus, IT leaders may help a firm weather a recession better by increasing the efficiency of business processes than by cutting IT spending.

Quite compelling when you consider that most organizations and IT leaders are currently focusing on IT cost-reductions, and not engaging in discussions with Vendors Systems Integrators to explore opportunities to increase the efficiency of existing business processes.

A brief conversation with me, for example, would reveal to an organization that:

  • Enabling efficient communications and anywhere access to people and information for employees will reduce sales cycles and help projects complete faster
  • Consolidating voicemail platforms, and leveraging existing investments, will not only save money but help users manage message overload
  • Bringing conferencing services in-house, and extending video conferencing to the desktop, will save money and enhance collaboration within the organization and among business partners

Each of the above scenarios directly affect business outcomes, and each would contribute to the desired business operation efficiencies that have a greater effect on an organization’s bottom line then a reduction in IT spending.

Sounds like a no-brainer, doesn’t it?

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