Fall Conference: Hyundai Narrows Its IT Focus - InformationWeek
IoT
IoT
Business & Finance
News
9/23/2003
10:32 AM
Connect Directly
LinkedIn
Twitter
Google+
RSS
E-Mail
50%
50%
RELATED EVENTS
[Cybersecurity] Costs, Risks, & Benefits
Feb 28, 2017
How much should your organization spend on information security? What's the potential cost of a ma ...Read More>>

Fall Conference: Hyundai Narrows Its IT Focus

With a limited IT budget, CIO Rich Hoffman told the InformationWeek Fall Conference that the automaker focuses its time and resources on a few vital projects as it aims to reach 1 million sales by 2010.

Rich Hoffman has a frustration, and apparently many business-technology executives share it. Speaking at InformationWeek's Fall Conference, the CIO of Hyundai Motor America asked the crowd of almost 300 business-technologists if they have IT vendors asking them for dramatic increases in what they pay, either for maintenance or through a licensing change. About half raised their hands.

One software vendor asked for increases that amounted to a 20% price hike. "I can't charge 20% more for a car," Hoffman says. "With one vendor I won't name, I challenged him to bring his CEO in to meet with my CEO to explain his price increases. I haven't had him take me up on it."

Hoffman talked about how Hyundai has set a goal to sell 1 million cars by 2010, more than three times its sales today, and what business technology it needs to accomplish that.

Hyundai, which spends 0.3% of sales on IT, compared with an industry average of 1% to 1.5%, has taken an approach Hoffman calls focusing on "the vital few" IT projects. From a technology standpoint, those include data warehousing, security, integrated voice response, Web self-service tools for customer service and training, and learning development.

CIOs often talk about needing to speak the language of business. Hoffman, who reports to the CEOs of Hyundai Motors America and Hyundai Financing, says for him that meant learning the language of the automotive industry. Car-design projects range from Class 1, which are new vehicles from the drive train on up, to Class 3, which are minor design changes. He started using that to describe IT projects. Says Hoffman, "When I say Class 1,2, or 3, it makes sense to them."

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll