InformationWeek

It seems logical that companies deeply committed to E-transformation would spend more on IT products and services during the next 12 months. According to an InformationWeek Research study, this theory proves to be true. Three of every four companies categorized as deeply E-committed plan to increase their IT spending during 2000. Only 4% of deeply E-committed businesses will test their tenacity by spending less this year.

Naturally, more lightly committed organizations will cut their IT spending than those considered deeply E-committed. Fourteen percent of lightly committed companies will decrease their IT expenditures during the next 12 months, 10% more than their deeply E-committed counterparts. E-Business Spurs Boost Now that the Y2K bugs are eradicated, E-business is clearly the beneficiary of technology investment. As companies maneuver to deepen their E-business initiatives, survey results indicate that three in five companies plans to boost their IT purchases in the next year. Nearly one-third will stand pat. And only 11% will actually see decreases.

Large companies, with more than $1 billion in annual revenue, are slightly more inclined to boost IT spending than small and midsize businesses. Companies with less than $100 million in annual revenue devote 10% of that revenue to IT outlays, compared with 6% in midsize firms ($100 million to $1 billion) and 5% in large companies.

Top of the Page

Now that the Y2K bugs are eradicated, E-business is clearly the beneficiary of technology investment. As companies maneuver to deepen their E-business initiatives, survey results indicate that three in five companies plans to boost their IT purchases in the next year. Nearly one-third will stand pat. And only 11% will actually see decreases.

Large companies, with more than $1 billion in annual revenue, are slightly more inclined to boost IT spending than small and midsize businesses. Companies with less than $100 million in annual revenue devote 10% of that revenue to IT outlays, compared with 6% in midsize firms ($100 million to $1 billion) and 5% in large companies.

Top of the Page

Keeping one's company technically advanced is a business imperative. But is it possible to help your customers maintain their technical edge? Perhaps not, but understanding their needs is a good first step.

So what's keeping them awake at night? Key customer concerns center on the client's ability to stay current. A majority of companies express worry that their clients won't be able to stay abreast of technology's rapid changes, while the inability to adjust to the pace of change is the second most frequently reported concern. Only one in three executives surveyed say their customers are concerned with understanding their shareholders. This may be a bit optimistic.

Top of the Page

Few companies run their E-business operations without the input of IT or IS departments. For a vast majority of businesses, such action would be considered a major oversight. While some companies outsource E-business operations, few business executives do so without maintaining local control.

Surprisingly, 21% of businesses don't say that a link between business units and an IT or IS manager is necessary. These companies are confident that their business units can successfully run or manage E-business operations independently of their IT or IS departments. One can't help but wonder to whom these companies will turn if disaster strikes.

Top of the Page

For many companies, ensuring their competitive advantage in the fast-changing world of E-business means continuous service introductions. The InformationWeek Research study finds that half of all companies surveyed plan to widely deploy an E-commerce strategy in the next 12 months.

Most companies will transform their operations entirely so the organization evolves around the new E-commerce initiative. Twenty-two percent won't leap so readily, choosing instead to pilot test their E-commerce programs. Twenty-one percent will limit the E-commerce rollout to serve specific departments rather than their entire enterprise.

Top of the Page

The Linux operating system will undergo wide pilot testing this year. One quarter of companies plan to deploy Linux at their place of business during the next 12 months.

Among these adopters, 36% plan to beta test the system to gauge its potential. Another 36% of organizations will utilize Linux departmentally, either to fulfill a specific operational need or to assess its application readiness. Few companies will take the leap and convert their entire operational system to Linux. Only 28% of businesses planning to deploy Linux before 2001 will make it a companywide conversion.

Top of the Page

The heightened threat of information loss in light of increasing E-commerce attacks is causing IT shops to assess their defenses constantly. Fear of sabotage is driving a majority of businesses to beef up protection of their electronic assets. Not surprisingly, the InformationWeek Research study found that investment in virus programs will increase at three of four companies.

Most companies will deploy an enhanced security program across their enterprise. Only 12% of businesses will limit their rollout to a few departments of crucial consequence. Most companies won't wait for beta testing before deploying. A majority will test their security products through actual use.

Top of the Page