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"IT is key to post-recession growth, say CEOs" Time to get that seat at the table?

IT is key to post-recession growth, say CEOs: ""

Interesting report from Gartner posted on December 14, 2009 in Information Age. Interesting I think for a couple of reasons. First off, it's no surprise that CEO's (and the rest of the C-suite) expect that IT will be key to post-recession business success. This isn't really news nor about the recession. For some years now the vast majority of CEO's have seen business technology as a key lever in growing the business. In fact I wrote about this last year. What is different I think is the comment in the article that CEO's don't want help just growing the top-line but are looking to business technology and the CIO to help with structural changes that can reduce long-term operating costs. This is in reaction to their, correct I think, assertion that consumers will not return to pre-recession spending habits any time soon.

The second interesting item is the comment that CEO's "were basically protecting IT through this recession". That's one way to look at it I suppose. It's certainly different than I've ever thought about it, particularly when I was being asked to cut my budgets. I don't think I buy it though. Yes, IT was likely cut less than, say, Marketing but I suspect it's more due to the largely fixed cost nature of IT budgets for most companies. Therein lies a significant opportunity for CIO's to show that they clearly get the changing nature of business ahead. And yes, it's a chance for those CIO's still pining for a "seat at the table" to show that they deserve it.

In many (most?) companies business technology expenditures are in the top 3 line items. If CEO's are looking for ways to make structural changes in their costs, then isn't it incumbent on savvy CIO's to look at their own budgets as opportunities for change? The largely fixed nature of most business technology budgets not only makes it hard to cut but makes it hard to ramp up investment. IT is often anything but nimble and agile. Instead of just looking at the opportunity to grow your budget as you work with the business going forward, take another fresh look at where you can make structural changes in how you spend.

Think in terms of how you could create a more flexible business technology organization and budget. Just as the supply chain organization is constantly re-evaluating sourcing models and suppliers, the business technology leadership should be doing the same inspection. If you were starting out today, would you structure your budget in the same way? Would you use the same suppliers? Structural change, by its very nature, is hard work but the post-recession world requires we make that change.

It just might give you a better view from a different seat at the table.