April 23, 2001

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Behind The Numbers:
Customer Centricity Goes Global

T projects with uncertain return on investment are on the back burner now, but will they reappear once the sluggish economy regroups? Don't count on it. Even a cursory look at first-quarter earnings offers plenty of supporting evidence that the economic slowdown is affecting the way companies approach projects and vendors.

Earlier this month, Ariba, Commerce One, and i2 Technologies, once the business-to-business software darlings of Wall Street, told financial analysts that they would miss first-quarter estimates. And last month, Oracle, the world's second-largest software maker, said it would cut 2% of its workforce.

But as recent InformationWeek Research studies have shown, the majority of companies are continuing to push ahead with their most strategic IT projects. Among these, there's one type that continues to get the nod from top management: projects that improve customer service and support.

Customer service is a top priority for businesses around the world. According to the InformationWeek Research Global IT Strategies 2001 Study of 894 IT and business professionals, 52% say improving customer-service and-support infrastructure is the most strategic IT project at their company this year. That percentage is even higher in North America (56%) and South America (57%). Customer-relationship management software is the leading app for strategic IT projects. Other IT priorities include improving Web-site capacity, network security, and E-commerce. Only 36% say E-marketplace participation is a priority.

Global companies remain upbeat. In fact, three-quarters of those surveyed say this year's revenue growth will be better compared with last year's. In addition, 61% say their companies' IT budgets will increase over last year.

How have reverberations from the downturn been felt at your company?

Own the data behind InformationWeek's Research. See our available reports at http://informationweekresearch.com

Beth Bachelor
News Editor
bbach@cmp.com

Knowledge Undervalued Surprisingly, businesses that engage in either business-to-business or business-to-consumer operations are split when it comes to understanding customers better. While half say they're seeking greater knowledge about their customers, an equal number say they aren't. That seems awfully shortsighted, especially at a time when E-businesses are bombing left and right. Experts warn that one of the most expensive mistakes companies can make during hard times is disenfranchising customers. Yet this advice appears to be falling on deaf ears among businesses that specialize in the service and product needs of both businesses and consumers. Two in five business-to-business and business-to-consumer sites globally report customer knowledge isn't a strategic business initiative this year. Top of the Page

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