Put a price on IT - and a value
By Simon Bisson & Mary Branscombe in Editorial
Posted in virtualisation, People, Applications, Enterprise, Server, Business, HP on
It’s time for IT to have its own ERP and CRM, according to HP. That’s what the business technology optimization tools it’s developed are for. Today that’s the product name, but it’s such a good phrase that Tom Hogan, the senior VP and global manager of HP software (and, since he bought EDS, services), is thinking of coming up with some other name so he can keep it as a description. It’s meant to make you think of business process optimization, where you discover the way your company does everything has been wrong all along and it’s going to take an expensive stint of consultancy to fix it.
The way most companies do IT is hand to mouth, piecemeal and manually intensive. Imagine a car assembly plant that hand-wrote scripts to control the robots every time a new part had to be made. If IT departments really were the cobbler’s children they’re often compared to, they’d have been barefoot so long they’d be placed in foster care. Most IT departments can’t add as much value to the business as the technology companies tell us their technology can deliver and that’s not just the gap between hype and reality. In a survey that the Economist Intelligence Unit just carried out for HP, an “overwhelming majority of both CEOs and CIOs” believe that “technology is integral to the success of their company” and 88% of CEOs and 90% of CIOs say they “share similar visions for how technology can deliver business outcomes at their company” - which is close enough that they must be at least on the same page. So what’s the problem? As usual, money.
The 70-80% of the budget most IT departments have been spending on maintenance rather than innovation has only just gone down to 60% according to a new survey in CIO magazine. If you’re doing really, really
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