Feature

Poor links with business causes ‘festering problem’ for IT

IT’s lack of alignment with business goals remains ‘a festering problem’, according to a survey of CIOs.

This lack of alignment is the chief worry of the 140 CIOs surveyed by Jerry Luftman, professor of information services programs at Stevens Institute of Technology.

Rather than focus on business process management, which would help IT get closer to the business, companies have mistakenly concentrated too firmly on technology such as web services, business intelligence and security, warns professor Luftman.

“Despite all the resources and technological innovation that the IT function benefits from, the needle hasn’t moved in years on the state of alignment with the overall business,” says the report.

Even though it’s a good thing for business and IT integration that more CIOs are reporting to the head of finance, Luftman believes this could also mean companies still consider IT as a cost centre and not driving revenue and innovation.

This view is further reinforced by the fact that the average tenure of a CIO has shortened to just 18 months – not long enough for someone to have a “transformative impact” on the business.


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This was first published in October 2006

 

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