Economist Research: Decision-Making in Turbulent Times

June 3, 2009
66 Views

Technology is indeed the answer!

Or at least, that’s what is suggested by a new report from the Economist Intelligence Unit, Staying the course? Technology decision-making in turbulent times. The study shows that the current climate provides a good opportunity to drive through major initiatives, that business leaders are looking to technology as in important instrument to prepare their firms for recovery, and that the key importance of better information systems is to better understand customer behavior.

economist-opportunity

Key findings of the study, which was sponsored by SAP BusinessObjects, include the following:

economist-turbulent-smaller[2]CIOs are not losing their place at the table. Where they have gained a voice in major business and technology decisions, CIOs positions are not being undermined as a result of the current economic crisis. Very few survey respondents believe that the influence of CIOs in technology investment decisions will decline in their firm over the coming year. A sizeable minority, meanwhile, expect the CIOs involvement in high-level business strategy discussions to expand.

Opportunistic firms are receptive to renewed technology investment. A large minority (44%) of the firms surveyed say that they will

Technology is indeed the answer!

Or at least, that’s what is suggested by a new report from the Economist Intelligence Unit, Staying the course? Technology decision-making in turbulent times. The study shows that the current climate provides a good opportunity to drive through major initiatives, that business leaders are looking to technology as in important instrument to prepare their firms for recovery, and that the key importance of better information systems is to better understand customer behavior.

economist-opportunity

Key findings of the study, which was sponsored by SAP BusinessObjects, include the following:

economist-turbulent-smaller[2]CIOs are not losing their place at the table. Where they have gained a voice in major business and technology decisions, CIOs positions are not being undermined as a result of the current economic crisis. Very few survey respondents believe that the influence of CIOs in technology investment decisions will decline in their firm over the coming year. A sizeable minority, meanwhile, expect the CIOs involvement in high-level business strategy discussions to expand.

Opportunistic firms are receptive to renewed technology investment. A large minority (44%) of the firms surveyed say that they will be “on the business offensive” in the coming year, looking for acquisitions or openings to take market share from weakened rivals. These firms are more likely than those adopting a “defensive” stance to consider selective new investment in technology. Investment proposals will not enjoy an easy ride, however. More executives are now involved in the approvals process, and the volume and detail of information required is increasing. Higher rates of return are demanded, and projects with shorter return periods are being favored.

Most firms are averse to suspending existing technology projects. Less than one-quarter of survey participants believe that major existing technology-led projects should be suspended until business conditions improve. Indeed, many believe the crisis presents a good opportunity to drive through such initiatives. Few executives, however, even at growth-oriented firms, believe that now is a good time to launch entirely new IT projects. CFOs themselves support the continuance of major existing projects, but it is unclear how often spending requests in such areas will stand up to competing investment priorities in the business.

The focus of investment continues to be on improving customer relationships. Customer service will remain the priority area for IT investments during the coming year. This is for good reason, as evidence mounts from several sectors that customer loyalty is eroding and customer churn increasing. Information management will also be high on the priority list, especially when it comes to projects designed to improve firms’ understanding of customer behavior.

economist-better-customer-analysis

The full results of the study are available free of charge at www.eiu.com/sponsor/sap/technologydecisions

[Post to Twitter] Was this interesting? Share with others on Twitter with automatic URL shortening! 

You may be interested

Education and the Blockchain – Should We be Teaching Blockchain in Schools?
IT
55 shares504 views
IT
55 shares504 views

Education and the Blockchain – Should We be Teaching Blockchain in Schools?

Glen Allard - July 26, 2017

It goes without saying that tech progress is moving at a rapid pace. Futurists point to Moore’s law – the…

5 Effective Strategies for Boosting IoT Security
Internet of Things
79 shares1,342 views
Internet of Things
79 shares1,342 views

5 Effective Strategies for Boosting IoT Security

Ryan Kh - July 25, 2017

With the emergence of IoT devices that are being rolled out from time to time, the serious IoT security issues…

The Future of Healthcare and Big Pharma is in Big Data Analytics
Analytics
669 views
Analytics
669 views

The Future of Healthcare and Big Pharma is in Big Data Analytics

riteshmehta - July 25, 2017

The healthcare industry recognizes that Big Data as and opportunity and a challenge for the whole sector. Nevertheless, systems and…