The results of a new survey - Beyond the Millennium - launched today by PA Consulting Group - reveal that many organisations have used the Millennium problem as an opportunity to revitalise their IT, giving them a stronger footing from which to address future business challenges.
The survey shows that more organisations now have leading-edge technology, a healthy relationship between IT and other departments, improved management of their resources and recognition at the most senior level of the importance of IT in the achievement of strategic business objectives.
While the Millennium problem has obviously caused significant disruption to ‘business-as-usual’ plans, organisations have seized the opportunity to make dramatic changes to the deployment of IT. Millennium compliance programmes have allowed organisations to:
- Accelerate investment in IT:
implementing state of the art systems and technologies. 76% of organisations surveyed have purchased new systems and infrastructures to replace existing ageing legacy systems and the majority believe that these investments have yielded valuable returns
- Improve working relationships between the business and IT communities.
70% of respondents agree that the business and IT communities have been brought closer together as a result of solving the Millennium problem; 80% agree that the business units now recognise their dependence on IT. In addition, 57% of respondents felt that relationships would continue to improve after the millennium
- Build awareness of the significance of IT at senior levels, including an appreciation that IT must enable an organisation’s business strategy.
78% of respondents agree that the visibility of the IT department has been increased at board level. In addition, 60% of respondents felt that in the future there is likely to be better prioritisation of IT projects based on organisation’s strategic objectives
- Improve the way in which they manage their resources.
A lack of human and financial resources forced organisations to prioritise planned IT projects. However, organisations did not use IT outsourcing as a tactical solution to the Millennium problem but dealt with it in-house. Indeed, 81% of respondents said the problem had not impacted their view of outsourcing. Organisations recognise the need for better project management and planning, and the development of those skills.
Jack McMullan, Member of the Management Group at PA Consulting Group, believes that many organisations have used the Millennium problem as an opportunity and turned it to their advantage. Co-ordination and understanding between the business and IT communities is a key contributor to ensuring IT supports the delivery of the business strategy. Mr McMullan said:
"We often find that the barriers to an effective partnership between the business and IT communities are cultural and structural. Research indicates that these barriers are being overcome and that the Millennium problem has been a catalyst in making this happen. Organisations are now in a stronger position to face key business challenges such as EMU, globalisation and e-commerce as they move towards the next millennium."
PA believes that the process of resolving the Millennium problem has put organisations into two distinct groups:
- Those that are strategically positioned, having invested wisely in IT throughout their compliance programmes
- Those that are not well-positioned due to a one-off "fix it" approach.
The solid foundations of organisations that have invested wisely in IT are likely to allow them to gain competitive advantage as they are now able to focus purely on business-driven IT projects. However, the report concludes that both groups still have much work to do:
- Ruthlessly prioritise delayed IT projects based on the strategic needs of the business, including making critical decisions on whether all projects should be continued
- Review all IT with a view to standardisation to assist with any future business change
- Confront business-critical issues (such as EMU, mergers and acquisitions, e-commerce, globalisation etc.)
- Review IT strategy, incorporating the impact of new business conditions and the changed relationship between IT and the business
- Exploit their new infrastructure to gain real business benefit.
The Millennium problem has taught organisations valuable lessons, but there is still much work to be done to ensure that the benefits from IT are understood and obtained by all.
