Only one per cent of chief information officers (CIOs) have IT strategies that focus on delivering bottom line business benefits, even though many claim that creating value from technology is a major objective.
Providing and managing IT is still more of a priority for most CIOs than creating business value, even though most of them believe it is their job to do both, according to a survey of 100 UK CIOs by management consultancy Dominic Barrow.
It warns that the "schizophrenic" nature of the IT role is causing a conflict of interest, where demands for the provision and management of technology overshadow the value agenda.
Chris Potts, director of Dominic Barrow, said: "Where delivery of business benefits is fundamental to the IT strategy it really makes a difference, and companies are able to create maximum value from IT.
"IT strategy is not about delivering IT projects; it's about maximising the value of IT. The best companies are those that realise you can't measure the value of IT in isolation.
"People have tried lots of fancy formulae to measure the value of IT, but you need to integrate IT spend into value-creating business plans. Those who get it right have a mindset of creating money from technology."
Despite a turbulent IT market, three quarters of CIOs said that the landscape for IT investment had not changed irrevocably in the past 18 months.
Yet almost half cited cost and cost reduction as their two main concerns for the future.
One in four listed customer care as a major priority but, despite the hype, only two per cent of CIOs indicated that data security is a major concern.
The survey also found that a large majority of organisations - 88 per cent - have conducted a comprehensive review of their sourcing strategy within the past 12 months, including 57 per cent in the last quarter.
Strategic and tactical priorities for 2003:
- Make the delivery of bottom line business value the explicit focus of your IT management strategy.
- Ensure that the person accountable for the total value which your company creates from IT drives the formulation and success of this strategy.
- Explore and resolve any potential conflicts of interest that the CIO has if they hold both investor and supplier responsibilities.
- Reward all your project managers based on the value that their projects create.
- Build and agree longer-term investment plans that make proper provision for the bottom line costs of today's and tomorrow's IT investment decisions.
- Keep your IT sourcing strategy under constant review.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago