Blog

Survey: Execs Say IT Helped Them Through Economic Crisis

Joe McKendrick
Insurance Experts' Forum, December 22, 2009

A lot of industry observers talk about the business-IT alignment gap, and how IT often fails to meet the fast-changing needs of businesses. This is certainly a gap seen within the insurance sector, with IT departments often scrambling to be able to effectively support new product lines.

However, new research shows IT may be harder on itself than the business ever was. And the recent economic hurricane may have given non-IT executives a healthier appreciation for their information technology functions. Business executives, overall, seem pleased with the way IT helped organizations navigate the rough seas. IT leaders, however, feel they could be doing better.

This gap between IT and business perceptions was released in a recent McKinsey & Co. study of 444 higher-level executives from a range of industries and geographies. The authors, Roger Roberts and Johnson Sikes, report that the recent economic downturn only increased awareness of the role IT can play in improving business processes and reducing costs.

McKinsey found that non-IT executives by and large believe their IT functions responded effectively to the crisis. A majority, 55%, say current performance in providing basic IT services is very or extremely effective—an increase from last year’s 50% level.

However, less than half of the IT executives surveyed say their management of IT infrastructure is extremely or very effective. Only 30% say their IT governance is extremely or very effective, and only 21% are happy with the ability of IT to add value to their business, compared to 30% of non-IT executives.

A majority of non-IT executives also are mainly pleased with IT's ability to deliver projects on time and on budget (more than 30% say IT is very effective, and 33% say IT is somewhat effective).

The survey hints that organizations that took the most advantage of information technology going into the recent downturn may have come out the strongest.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Global Supply Chain, Local Problem

As a technology provider, your clientís ability to deliver products and services to their customers, when and where they need them, is at the heart of their business success.

Legacy Systems Are Increasingly a Competitive Handicap

Legacy systems, while reliable, increasingly hold insurers back, a new study finds

From Her to Watson, and What’s Next?

Imagine a learning system that can replace the performance of your best employee to provide the same level of support across the organization.

Five Reasons to Software-Define Your Operations

It may be possible to provision key services with the click of a mouse, but benefits go well beyond that.

3 Policy Admin Conversion Considerations

Insurers would be wise to learn these lessons before formulating a strategy to convert policies to a new policy administration system.

Boyle’s 4th Law - Response Time Matters!

Why many companies donít do a good job of measuring the thing that clients value the most.