Spell It Out
IT executives need to clearly articulate in business terms how technologies like Web 2.0 can be exploited to improve capital growth, organic growth, and cut operating costs, which in turn flow on to improvements in total shareholder return for investors, says Peter Hassall, IT executive management consultant at Peter Hassall & Associates.
“Putting ourselves into the shoes of our business partners, we need to ask ourselves: What will Web 2.0 technologies do for our businesses?,” Hassall says. CIOs need to determine how Web 2.0 applications will either directly or indirectly:
- Improve organic growth through product and service innovations
- Help reduce cost of operating the business
- Enable new product distribution channels thereby increasing market share
- Prove an enabler for opening up more merger and acquisition (M&A) opportunities, and therefore increase capital growth
“Additionally, we need to clearly demonstrate how we can protect sensitive corporate data and comply with listing requirements in the open and collaborative environments encouraged by Web 2.0 environments. At the same time we encourage the free flow of ideas and innovative thought through the use of these technologies,” he says.
“Our challenge is not to promote a “techo” concept of Management 2.0 but to ensure that management understands how Web 2.0 can add value to their business unit — either directly or indirectly — and more specifically provide some idea on how investment in the technologies will improve the bottom line, dividends and share value over time.
“In this and every case of considering technology investments for business benefit, Management 2.0 looks no different to what Management 1.0 should look like now,” Hassall says.
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