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FY360° | IT under pressure

McKinsey Global Survey results.


Recognition of IT’s strategic importance is growing, but so is dissatisfaction with its effectiveness, according to our eighth annual survey on business and technology strategy.

More and more executives are acknowledging the strategic value of IT to their businesses beyond merely cutting costs. But as they focus on and invest in the function’s ability to enable productivity, business efficiency, and product and service innovation, respondents are also homing in on the shortcomings many IT organizations suffer. Among the most substantial challenges are demonstrating effective leadership and finding, developing, and retaining IT talent.

These are among the key findings from our most recent survey on business technology, which asked executives from all functions about their companies’ priorities for, spending on, and satisfaction with IT.1 Overall, respondents are more negative about IT performance than they were in 2012 and, notably, IT executives judge their own effectiveness more harshly than their business counterparts do. Compared with executives from the business side, they are more than twice as likely to suggest replacing IT management as the best remedy.
Evolving priorities

Comparing the 2013 responses with the previous two surveys, the data indicate notable changes in organizations’ current priorities for IT. Concerns about managing costs are down, while larger shares of executives now say their organizations are using IT to improve business effectiveness and information availability (Exhibit 1). Respondents cite these same objectives most often as ideal priorities, suggesting that companies are getting better at aligning their actual priorities with what’s ideal—and that more executives see IT as core and relevant to day-to-day business, not merely a cost center.

More:
www.mckinsey.com/Insights/Business_Technology/IT_under_pressure_McKinsey_Global_Survey_results


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