Enterprising Developments

IT Concerns for Coming Year Shift from Budgets to Business Ops

Joe McKendrick
Insurance Experts' Forum, October 11, 2011

Some interesting news about what CIOs think about the direction of IT these days has come out of the Society for Information Management’s annual survey of CIOs and IT executives.

First, IT leaders are not quite as concerned about IT budgets as they have been in recent years. That's dropped to number four on their list of concerns. The top management concern these days: “IT and business alignment,” followed by “business agility and speed to market.”

But what is “IT and business alignment”? It's a mantra that is repeated incessantly at conferences, in analyst reports and trade publications. Now IT budgets, there's a hard-and-fast, black-and-white concern. You either have it or you don’t. And when you get the budget you need, you celebrate and get back to work.

But “IT and business alignment” has always been a squishy, amorphous, feel-good term. How do you know when you get there? How do you know if you're even there yet? To paraphrase author Gertrude Stein, is there a “there” there?

On the budget front, things are getting much better and stronger. Eighty-five percent of the 275 organizations participating in the survey said their IT budgets will stay the same or increase in 2012 compared to 2011. A majority, 56 percent, expect budget increases. Meanwhile, 94 percent also said staff salaries will stay the same or increase in 2012. About 67 percent expect IT salaries to increase.

In terms of dollars invested, business intelligence has been the top tech investment in 2011, followed by cloud computing. Here is the top five list:

1. Business intelligence

2. Cloud computing

3. Enterprise resource planning (ERP) systems

4. Mobile and wireless applications

5. Customer Relationship Management (CRM)

Jerry Luftman, lead researcher for the SIM survey and a professor at the Stevens Institute of Technology, will present the complete survey findings at SIM’s annual conference taking place next month in Orlando.

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

 

 

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

Despite Valiant Efforts, Insurers' Consumer Ratings Drop

Insurers also are confronting waves of disruptive changes, including big data analytics, an aging population, ongoing economic uncertainty and the growing frequency and severity of natural disasters, which threaten to challenge and undermine businesses.

Why You Can't Take a Wrecking Ball to Your Legacy System

If you think of enterprises like collections of neighborhoods that need to be nurtured, you quickly see that architecture, not obliteration, is the key.

The Apple Bounce: Are Wearables Truly this Big?

I just donít believe it; only 720,000 Androidwear watches were sold in 2014. Apple has been amazingly successful in so many markets. Were they always first? No, a lot of products before. Were they always best? Again, no, superior devices have fallen.

Ten Stats About Social, Mobile, Analytics, Big Data, Cloud and Digital

Deployment rates have grown in the year since Novaricaís last study on these topics.

Trends in P&C and L/H/A Policy Administration Systems

Novarica research shows that nearly 40 percent of P&C and life/health/annuity carriers are currently replacing or planning to replace a policy administration system.

How Quote Data Can Deliver Powerful Business Insights

Quote data often is disregarded due to its volume, but properly managed can offer insights into product and pricing strategy, expense control, cross selling and upselling.