IT
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Salesforce.com, a fast-growing on-demand customer relationship management (CRM) company, is rapidly broadening its scope to become more of a complete sales, marketing and customer service system provider. In doing so, it is likely to attract increased competition from some bigger rivals. According to this Business Week article, Salesforce.com grew 76% in 2005, 60% in 2006, and is expected to see 45% growth this year. That means quadrupling in size in three years! And talk about guerrilla marketing: their stock symbol on the NYSE is CRM.
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Most people know Google as a search engine company. As such, it is a gargantuan content finder, aggregator, and routing machine. Some of that content is of their own making or repackaging (Google News and Blog). Some of it is a mashup (Google Maps, Google Earth). But most of the initial success of Google can be attributed to finding and distributing the relevant content of others to an interested, inquiring audience (Google, Google Blog Search, Google Book Search, etc.). However, according to a Wired interview with Eric Schmidt, their CEO, Google is first and foremost an advertising operating system (see more on John Battelle’s post).
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Sneaking peeks at online highlights of NCAA Division I basketball tournaments or updating pool charts during the work day, instead of looking at your boss’s sales projections? You might want to watch what you watch. Here’s one good reason.
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What’s the biggest driver of our economy? Marketing? Manufacturing? The Energy Sector? Agriculture? Nope. According to a story at Internet News, the biggest contributor to our economy is information technology (IT). That conclusion comes from an extensive study and report compiled by the Information Technology and Innovation Foundation (ITIF).
According to the ITIF synopsis, “the integration of IT into virtually all aspects of the economy and society is creating a digitally-enabled economy that is responsible for generating the lion’s share of economic growth and prosperity, both here and abroad, including in developing nations. Importantly, the ‘IT engine’ does not appear likely to run out of gas anytime soon and should power robust growth for at least the next decade.”
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For the modern-day CEO wishing to instill strategic transformations in his or her company, deeper knowledge of underlying technologies is critical. That’s the assessment from a major research study (Business Week story here) carried out by the Cranfield School of Management, one of the top business schools in the U.K. Traditionally, technology has often been relegated (and many would say siloed) to the sole dominion of the IT department. The research concludes this is a mistake.
The study tracked more than a thousand projects, and it found CEOs who tried to transfer ownership of major technology initiatives solely to CIOs or CTOs, risked projects that were costly, prone to failure, and poorly understood by key stakeholders in the corporation. The study emphasized the necessity of CEOs and CIOs working closely together on technology initiatives to ensure success and align reality with vision. For this to happen the CEOs need to become more technology savvy and involved.
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