InformationWeek

By Eric Chabrow

nformation technology departments are clearly becoming more responsive to the needs of their companies' customer. Indeed, 200 IT managers surveyed by InformationWeek Research say their relationships with customers have changed significantly during the past two years--much more so than with groups within their own organizations or with suppliers and distributors. More than half the IT managers say their companies collect more information about customers on their Web sites today than they did a year ago. Though most companies remain jittery about giving outsiders access to internal information, 45% say they allow such access to encourage closer relationships with customers.

How IT helps lead the transformation of business to a more customer-driven approach is the theme of this week's annual InformationWeek Conference in Tucson, Ariz., and this InformationWeek Executive Report. One story previews a conference presentation by John Keast, CIO of PG&E Corp., ("E-Business Energizes PG&E"), and another previews a presentation by Jim Noble, global head of IT strategy at General Motors Corp., ("GM Races To Keep Up With Buyers").

Because of deregulation, Keast says, competition for customers has created a new culture at the San Francisco gas and electric provider--one that requires quick decisions. Decisions that once took three months now are made within a month. It's a pressure-cooker atmosphere for IT staffers.

Noble discusses his formula for collecting information from millions of customers who visit GM's Web sites, combining it with other data, and adding complex algorithms to yield more-specific information about its customers.

To start off our report, senior editor Jeff Sweat points out that customer-focused businesses are investing heavily in technologies such as the Web, customer-relationship management software, and application integration tools. These investments help businesses remain competitive ("Customer Service: When Customers Are Kings").

Contributor Lenny Liebmann explains how a small business, Specialized Bicycle Components, uses the Web to secure its brand name and keep buyers of its high-priced bikes happy ("Branding Strategy: E-Service At Hub Of Online Push").

Strategies abound. Dave Taylor and Alyse Terhune, founders of eMarket Holdings, encourage businesses to use anonymous E-markets to promote sales. The key is understanding what customer data you need to drive your business processes, and only sign up with E-markets that give you access to this information ("E-Market Options: New Ways To Reach Customers").

Today's IT-enabled, customer-facing systems are putting the personal touch back into big business. Michael Katz, a senior VP at Booz, Allen & Hamilton, suggests that it's time for businesses to focus on the personal attention online sales can offer ("Web Technology: IT Adds The Personal Touch").

Indeed, focus is an important characteristic of the customer-driven enterprise. "Focus allows a company to concentrate on a highly valued set of customers as well as those things that are absolutely critical to serving them," says conference host and Harvard Business School professor James I. Cash Jr. Understanding the value of customers is good business, at least, and will improve the bottom line, at best. Says Cash, "That's the true lifetime value of a customer."

Eric Chabrow
Editor, Special Projects
echabrow@cmp.com

InformationWeek Executive Report

Customer Service: When Customers Are Kings E-Business Energizes PG&E GM Races To Keep Up With Buyers Branding Strategy: E-Service At Hub Of Online Push E-Market Options: New Ways To Reach Customers Web Technology: IT Adds The Personal Touch

Illustration by Dennis Harms