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3.5 Management issues

Most businesses have focused on using ICT to support basic business functions and deliver outcomes relating to cost reduction, increased quality and reliability, and improved scheduling. Although the issue has been around in management circles for at least 15 years (Ernst & Young 1989; Scott-Morton 1991), fewer businesses have effectively aligned their business and ICT strategies or used ICT to leverage innovation.

Since the technology sector down turn, the role of ICT managers in contributing to business strategy and innovation is now receiving a great deal more attention within the ICT industry. A recent issue of CIO: The Magazine for Information Executives is devoted to innovation (Bushell 2004).

In larger companies, divided ownership of and accountability for ICT can reduce the opportunity for innovation. It is argued that while business unit leaders have developed a greater understanding of the strategic impact of technology, in traditional business structures ICT professionals continue to control the investments (Mark and Monnoyer 2004).

The risk of this split in responsibilities for ICT is that business unit leaders may not fully appreciate the possibilities of technology, while ICT managers may not fully appreciate the drivers of the business and the full range of areas where ICT may be useful. The broader risk is that managers, in general, may not be aware of the strategic importance and contribution of ICT throughout the business.

Several companies consulted for the study had been acquired by venture capital investors who introduced major changes in the top management team, who in turn restructured the companies around the business enabling opportunities provided by ICT. The study found that a number of companies had outsourced their ICT support functions allowing a greater focus on the strategic use of ICT – that is, to support innovation.

 

 

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  • Last modified: 5 February 2008, 10:30am