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."
How Enterprises Are Attacking the IT Security EnterpriseTo 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.
Infographic: The State of DevOps in 2017Is DevOps helping organizations reduce costs and time-to-market for software releases? What's getting in the way of DevOps adoption? Find out in this InformationWeek and Interop ITX infographic on the state of DevOps in 2017.
2017 State of IT ReportIn today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.