Credit crunch doesn
By Simon Bisson & Mary Branscombe in Editorial
Posted in People, Enterprise, Business, HP on
It’s still about adding value according to HP’s software and services VP Tom Hogan. He was presenting to a group of 30 IT executives in London the other day and he thought he’d respect the mood of the moment. “I was very intentionally talking about cost reduction and efficiency because of all the uncertainty in the world economy. I wanted to pound the point on how IT can help save money,” he told us. But he’d read the mood wrong for the UK.
“It was interesting how many people said ‘Great, but we really don’t care about that. What we care about is how can we add more value in our line of business, because senior executives are still willing to spend more if they get the value from IT.’ It makes a point in this time of uncertainty. Ten years ago when the world was so unstable, IT would have been in shutdown. Now IT is so key that they’re still thinking about what to do next.”
Will what they do next include buying HP software? Take Mercury and Opsware and the ‘business technology optimisation’ tools that HP has built with them. They’re not tools for doing business with IT; they’re tools for turning IT into a business, for giving the IT department KPIs and scorecards they can track the way other business units do. Investing in IT that does IT might not be top of the shopping list tactically, but a real CIO does strategy these days.
Salesforce recently commissioned a survey of UK CIOs at small companies; Ian Parkes who conducted the research calls CIOs an endangered species. “They’re going to be rebranded as the chief operating officer or even removed. They’ve got to show value add, but they are not able to articulate it from the point view of looking for investment. Too often they do not have sufficient power to do what you would imagine a CIO would do, they are not board members and they don’t have that level of power or credibility within the organization.”
If you want to spend money on IT at the moment, you’re going to have to be able to explain the value and explain it in business terms.
-Mary
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