Throwing more money at technology problems is not solving key organisational
problems for corporate IT departments, a new poll of chief information officers
warned today.
A survey conducted this summer by the
Stevens
Institute of Technology claimed that IT's lack of alignment with overall
business remains a "festering problem".
Jerry Luftman, professor of information services programmes at the Stevens
Institute, warned that the issues will remain until IT departments are
integrated fully into the corporate structure.
"IT and business alignment remain the very top concern of IT executives,"
the report stated.
"Despite the resources and technological innovation that the IT function
benefits from, the needle has not moved in years on the state of alignment with
the overall business."
Professor Luftman added that improvement in business process management
should have been among the top two areas of improvement and development between
2005 and 2006, but did not occur.
Web services, business intelligence and security technologies were the top
developments, ahead of business process management.
Professor Luftman believes that IT continues to focus too much on technology
itself and not enough on its management and its alignment with the business.
The study noted that the past year witnessed an increase in chief information
officers reporting to chief financial officers.
Although reporting to chief executives also increased, more reporting to
chief financial officers indicates an increase in some corporations' view of IT
as a cost centre, as opposed to a function that drives revenue and innovation.
Chief information officer tenure was found to have shortened slightly to an
average of 18 months, suggesting that they are not making the transformative
impact on businesses that they should be.
The survey of 140 senior-level information officers at corporations in a
range of industries was sponsored by the
Society
for Information Management and administered and interpreted by Professor
Luftman.
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