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September 27, 1999

InformationWeek 500
IT Excellence

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And there are risks. However, while IT managers acknowledge the risks inherent in trying new technologies or processes, many of the InformationWeek 500 companies are ready to take on more risk in an effort to meet or exceed business goals. More than 60% say their organizations are more likely to take risks with new technology investments in the coming 12 months, while only 9% say they'll be more conservative. Of those IT managers who say their companies are more likely to take risks, three-quarters cite increased competitiveness as a reason.

Nine of 10 IT managers say early adoption of new technologies is important in determining the financial payoff of a typical enterprise application at their company.

Who are the sources of innovative ideas and practices at InformationWeek 500 companies? Nearly half of survey respondents say the most effective ideas for process improvements come from IS management. That's up considerably from last year's survey, when 30% of respondents credited themselves for driving innovation. Other key sources of improvements and new ideas include business line managers and IT or business project leaders.

pie chart Beyond individual contributions, a large majority of IT leaders at InformationWeek 500 companies say corporate culture plays a significant role in developing IT solutions. At companies where corporate culture spawns IT innovation, the reasons behind it are that employee input is welcomed and knowledge sharing is encouraged.

"Culture is a very important aspect of innovation," says Jim Suprinski, general manager of information services and technology at Consumers Energy Co., a utility in Jackson, Mich. Consumers, like many other utilities, is preparing for the more competitive environment that a deregulated utilities marketplace will bring. Whereas the emphasis in the past was on using IT to support existing services and hold down costs, the emphasis is increasingly on using technology, such as Web services, to expand its business.

bar chart "We're going from a utility model with fixed pricing and a fixed customer base to a competitive industry," says Suprinski. "So the culture issue is critical. We're going to be investing dollars in IT that probably wouldn't have been invested" if the market had remained regulated.

Many of Consumers' new projects will come from a technology strategy group the utility formed. Suprinski says the group creates a "bridge" between the IT department and business units "and helps us to find the best ways to use new, emerging technologies and even older technologies that haven't been used as efficiently as possible."

Other cultural elements that managers say help foster innovation include diversity, groupware and other collaborative tools, the use of strategic IT service providers, global resources, and financial incentives for adopted ideas.

bar chart IT departments continue to form closer partnerships with other parts of the business. IT leaders at InformationWeek 500 companies say their organizations are playing a greater role in their companies' strategic planning--and more than ever, they're considering business objectives when making decisions about technology investments.

Top business executives are paying close attention. "A CEO in any business today has to be keenly aware of how important technology is in shaping the company's future," says Robert Rodin, president and CEO at Marshall Industries, the No. 1 company in this year's InformationWeek 500 ranking. "IT is part of the boardroom strategy. We must be committed to making sure IT continues to develop not just the basic information plumbing at the company, but the new features and projects that will help improve the business."

Among the InformationWeek 500, there are 499 other CEOs who would agree.

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