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Information technology was supposed to usher companies into an era of growth and profitability. Instead it seems to have led many into frustration and red ink. Such are the conclusions of a new Bain & Company survey of more than 500 senior business and technology executives worldwide. Some 70 percent of respondents agreed with the statement, "In our company, IT is highly relevant to enabling growth." But nearly as many agreed that "IT has been inhibiting our efforts to grow."
Take a short self-assessment survey to find out if IT is a boost-or a barrier-to growth in your organization.
Bain's Experience in IT Bain has been helping companies to break out of this downward spiral, and to create IT organizations that enable growth rather than inhibit it. Only a small number of companies have IT that is truly effective--projects get done on time, on cost--and aligned with the business priorities. But those companies as a group record a compound annual growth rate over three years 35 percent higher than the average, and they spend less. Companies can save hundreds of millions in costs, in some cases, while increasing sales growth dramatically.
Getting Effective:
Getting effective requires companies streamline their IT organizations in at least three ways--simplifying systems to reduce their costs, sourcing IT hardware and service from the best location--in or outside the company; and dramatically increasing the business results from IT initiatives.
Complexity management: Bain's role in complexity management is to help organizations reduce costs and deliver value in the existing complex environment and to define and manage the transition to a less complex environment.
Outsourcing & offshoring: Bain can enable clients to ensure sourcing decisions are based on business strategy and to help set up sourcing agreements to deliver value and lower costs now and flexibility for the future.
Value delivery: Bain's role in value delivery is to help clients maximize the business results from IT initiatives, beginning with defining the requirements of a system, all the way to retiring that system. Getting Aligned:
Once your IT organization is effective, the ultimate goal is to harness IT to business objectives in a way that enables new growth; a way that allows business units to serve customers in ways that competitors could not. This requires aligning your strategy, prioritizing projects and organizing collaboration between IT to create new capabilities. You'll know you have arrived when:
- The IT organization understands business priorities, supports business needs, and is well staffed to respond
- Business trusts IT capabilities; business actively participates in-and often leads-all IT projects and investments
- IT organization proactively identifies business opportunities
- IT capabilities are a core element of the business strategy
To find out more about Bain's work in this capability area, please contact the practice.
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Downturns create an opportunity to strengthen IT 
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