InformationWeek

I N T R O D U C T I O N
The Biggest & The Best
A look at how InformationWeek made this year's selection of the top 500 corporate users of information technology

Issue date: Sept. 18, 1995

As you look through this year's InformationWeek 500--our seventh annual ranking of the biggest and best corporate users of information technology--you'll notice that we've significantly enhanced our criteria in both categories. This year, we've partnered with Computer Intelligence InfoCorp, the La Jolla, Calif., research firm, to rank the biggest technology users with a formula that accounts for the amount, type, and usage of information technology in an organization (see story) . The best, meanwhile, were chosen by our editors and a group of researchers at MIT's Sloan School of Management led by Prof. Erik Brynjolfsson, a recognized authority on assessing the impact information technology has on corporate productivity.

InformationWeek and MIT developed two surveys to get a picture of how technology can make companies more productive. The first was designed to be answered by corporate human-resources executives; the second, by top technology executives. The HR survey, conducted by Incon Research Inc. in Norwalk, Conn., asked about changes taking place in organizations, the nature of the work being performed, and how computers have changed employee activities.

The IS executives' questionnaire was handled by Advantage Business Research Inc. in Lake Success, N.Y., which inquired about the number of IS employees and the 1995 technology budget. Both surveys were conducted by telephone over three months beginning in June.

For companies that didn't respond, we estimated their 1995 IS budget and total number of IS employees. For companies that responded last year but not this year, the estimate is based on a ratio between revenue, IS budget, and IS employees using last year's responses.

For those that did not respond this year, and that either did not respond or were not on the list last year, the estimate is based on an average of revenue, IS budget, and number of IS employees computed from responding companies within the same industry category and then weighted according to revenue. In both cases, we faxed our estimates to the companies and gave them time to respond.

Our editors determined the leaders i n IT usage from data obtained through the surveys and additional reporting on IT practices within industry groupings.

To honor those firms using IT to increase corporatewide productivity, MIT--working with Computer Intelligence InfoCorp's list and the two surveys--developed a complementary ranking. MIT's research revealed that certain business strategies, organizational structures, and IS tactics play a crucial role in a company's success (see story) .

You'll also notice a few changes in the industry stories, which follow the MIT article. Our industry breakdowns are more tightly focused. We've also included with each feature a "trends box" that highlights major IT developments during the past year.

One widespread trend presented a moving target: mergers and acquisitions. Because of time, we could not account for every one (the Chase-Chemical merger is a case in point).

Another trend was the push into cyberspace--using the Internet for business. We're also mov ing to the World Wide Web. The IW 500 is available through our Web site and we're providing links to Hoover's Directory of Companies for those seeking more detail about firms on our list.

Our decision to revamp the IW 500 was not the result of a seven-year itch. In fact, we did so only after consulting with top chief information officers, vendor CEOs, and professors and researchers from some of the country's leading business schools. Our new methods make it tougher for companies to qualify for the top 500. But that also means companies on this year's list can truly claim a spot among the corporate elite.

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