Cash also points out that most companies are still trying to finish Y2K projects. Such projects are tying up resources that might otherwise be spent on new information technology, and many IT shops are "locking down" their systems and not introducing new technology until 2000. "Internal resources are already 100% allocated," Cash says.

Resource Problems
It's undeniable that IT resources are a problem for business. Asked why they would avoid the early adoption of new technologies, IT managers at 53% of the companies cited lack of resources. Other reasons given include too many bugs in new products, too much risk, lack of management support, no obvious benefit from the technology, and a conservative corporate culture.

Lack of IT resources has been an issue for DuPont Co., where Y2K remediation work--carrying a total price tag of $350 million to $400 million--has had top priority over all other IT projects.

But as Y2K work winds down, CIO Robert Ridout says the Wilmington, Del., chemical company plans to implement some leading-edge E-commerce, electronic procurement, and customer-relationship management technology. "When it comes to technologies like E-commerce, we've been conservative," Ridout says. "But now we're getting more aggressive. E-commerce is starting to emerge in the chemical industry, and it's bringing new opportunities and new threats." In the latter category are specialized online suppliers such as Chemdex Corp. in Palo Alto, Calif., which sells life-science chemicals to pharmaceutical and biotechnology companies. "We have competitors that just a year ago we'd never heard of," Ridout says. Other forces driving the chemical industry to adopt cutting-edge IT at a faster clip include the need for increased efficiencies as prices for commodity chemicals drop, and customer demands for supply-chain optimization and just-in-time deliveries.

Some IT managers say companies shouldn't be pressured into technology decisions, and need to make sure that they're leveraging leading-edge technologies instead of just reacting to them. For example, technology vendors are constantly introducing new software and hardware products or upgrading existing ones. This puts IT departments in a constant state of decision-making regarding the adoption of new technologies. "Technology vendors are moving faster than the average company can implement their products," says Colgate-Palmolive's Toben.

While it's a good idea to keep updated on leading-edge technologies, it's also important to take the time to investigate and test them, says Marriott's Shuler. "My job is to make sure Marriott is looking at the next three to five years," he says. "And during that cycle of looking, we're testing the waters. By the time we've done the testing and prototyping, we can be pretty confident that it will work."

Even Alaska Airlines' Reeder doesn't believe that deploying the most-advanced IT is a make-or-break proposition for everyone. The leading-edge approach, he says, is important to his company because of its strategy. "We try to differentiate ourselves on service," he says. "Some airlines operate in low-tech mode, and it meets the needs of the product they're offering."

But Ferderer of CUNA Mutual is less optimistic about the fate of companies that don't become more aggressive toward adopting cutting-edge IT. "I don't think they'll be competitive," he says. "I don't think they'll be able to serve their customers in a competitive manner or work with their suppliers in an efficient manner. I don't think they'll survive."

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