Last year's top pick in the InformationWeek 500, National Semiconductor, provides a good example. What really caught our eye was National's Virtual Inventory system. With it, rather than each distributor having to hold in inventory new products that may not sell well, it simply shows the part in stock. Orders get funneled back to National, which, together with its shipping partner, gets the part from its global warehouse to the distributor. The distributor repackages it and delivers it to the customer. This is a huge advantage for customers as they see more (actually hundreds more) new parts. Distributors avoid the risk, and National builds loyalty by helping distributors succeed. Everyone wins.
National's IT team is also big on an intimate knowledge of its business. Each year, National's IT managers spend significant time away from their jobs out in the field, working side by side with business constituents--virtual inventory was developed out of one of those sessions. That dialogue goes on all year. National's IT pros don't assume that a static picture of the state of the business is sufficient, and they also don't assume that they'll understand the end customer as well as the people who serve those customers every day.
IT governance is a topic that often solicits eye rolls, as it conjures visions of copious documentation and excessive procedure, all with tenuous benefit. It doesn't have to be that way. InformationWeek Analytics has created a practical guide to IT governance, available now at governance.informationweek.com.
Art Wittmann is director of InformationWeek Analytics, a portfolio of decision-support tools and analyst reports. You can write to him at awittmann@techweb.com.
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