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CIOs Embrace Business Technology Optimization Strategy

  • 29 May, 2003 11:06

<p>140 IT Execs Share Best Practices for Reducing IT Costs and Increasing IT Quality at Executive Summit</p>
<p>Sunnyvale, CA – May 29, 2003 – Mercury Interactive Corporation, (NASDAQ: MERQ), the global leader in business technology optimization, today announced the results of a Business Technology Optimization Executive Forum hosted in New York City last week.</p>
<p>Senior information technology executives from Global 500 companies joined Mercury Interactive; Accenture, BEA Systems, SAP AG; keynote Lou Dobbs of CNN Moneyline, META Group President and CEO Fred Amoroso, and industry pundits Esther Dyson and Christopher Lochhead for a thoughtful, lively and interactive discussion about the future of IT and emerging best practices.</p>
<p>Attendees confirmed that Business Technology Optimization (BTO) is emerging as an important strategy for effectively managing and operating a modern IT organization. CIOs confirmed that:</p>
<p>· Extracting more value from existing investments;
· Reducing cost;
· Reducing business and technology risks are principal motivators for embracing a BTO approach</p>
<p>META Group's Fred Amoroso told attendees that 71 percent of IT executives recently polled plan to keep their IT budgets flat or reduce them this year. Additional findings show that only 37 percent of IT projects are delivered on time and 42 percent are delivered on budget. When asked what the biggest issues facing IT were today, attendees replied: reducing costs (32 percent), strengthening IT's connections to the business (29 percent), preparing for the future (23 percent), and managing enterprise risk (22 percent).</p>
<p>Amnon Landan, Chairman and CEO of Mercury Interactive opened the day with the comment, "The days of big bang IT projects are gone forever. The benefit of BTO's incremental approach is faster time to results. By focusing on application and business process quality, CIOs can deliver business results in weeks or months."</p>
<p>Attendees confirmed interest in .NET, J2EE, and Web Services-based composite applications. A survey question regarding the business drivers behind composite applications showed they were popular because of the new services attendees could deliver to customers (41 percent), their ability to reduce total cost of ownership (34 percent), and their link to improved business efficiency and productivity (25 percent).</p>
<p>Attendees heard and shared strategies for: reducing time to market, reducing hardware and maintenance costs to free up funds for new investments; improving quality; and increasing response rates. Highlights of the day's proceedings included:</p>
<p>· MasterCard President of Global Technology &amp; Operations Jerry McElhatton, who is nearing the end of a five-year $160 million IT project to completely overhaul core processing systems, discussed the positive experiences he had when he "in-sourced" MasterCard's debit switch using BTO. By doing so, MasterCard achieved a significant reduction in the cost of the system and time to market was dramatically improved.</p>
<p>· A surprising 68 percent of attendees have Web Services projects in production. A discussion ensued regarding the importance of the Web in providing a unified user experience and as a platform for integrating applications seamlessly.</p>
<p>· Len Tenner, Chief Technology Strategist and CIO emeritus of Hewitt Associates, a global outsourcing and consulting firm delivering human capital management services to the Fortune 500, estimates over half of Hewitt's IT projects are BTO-related, with the other half devoted to security and compliance issues. BTO, he says, replaces the old days when "all IT was concerned with was getting data out, getting systems to run, and looking for forgiveness later." Tenner optimizes Hewitt's IT shop through performance management, service level management, and a focus on the customer's end-to-end experience.</p>
<p>· Roger Mahabir, President and CEO of Technology Innovations, Inc. talked about the IT challenges he faced as the former CIO of RBC (Royal Bank of Canada) Capital Markets, the largest financial institution in Canada. By using BTO to implement an award-winning e-business program at the RBC, he was able to simulate real-life conditions, allowing him to stay within his budget while still delivering the performance expected by his business units.</p>
<p>Concluded Landan, "The business dependence on IT is greater than it has ever been before and today's applications are more complex than ever before. BTO is quality management customized for IT. By embracing a BTO strategy, leading CIOs are overcoming risk, lack of performance, and spiraling costs in IT today."</p>
<p>About Mercury Interactive Corporation
Mercury Interactive, the global leader in business technology optimization (BTO), delivers Optane®, a family of products for enterprise testing, deployment, and performance management, that enables customers to optimize business processes and maximize business results. Customers worldwide use Mercury Interactive solutions across their application and technology infrastructures to measure, maximize and manage performance at every level of the business process and each stage of the application lifecycle to improve quality, reduce costs, and align IT with business goals.</p>
<p>Founded in 1989, Mercury Interactive is headquartered in Sunnyvale, California, with offices in more than 25 countries. Further information is available at www.mercuryinteractive.com. The company's common stock trades on the Nasdaq National Market under the symbol MERQ.</p>
<p>For further information please contact:
Gabrielle Cichero Mercury Interactive 02 8273-1905
Shuna Boyd BoydPR 02 9418 8100</p>

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