Wednesday, June 11, 2008

Business Transformation

Ralph Szygenda, CIO of General Motors states in the Wall Street Journal article, “My job is to use IT to transform the business.” He estimates that his cost-cutting has added $5 billion to GM’s bottom line over the past decade. He used IT to eliminate the redundant efforts/processes in the Car design and other processes.

In any organization, the IT can play a role of transformation agent by aligning business and IT. Most of the time, the business processes across LOBs/functions will be working in silos. IT can look at the bigger picture and integrate/optimize the resources across organization. So, CTOs and CIOs play an important role to use the IT effectively and efficiently.

Business process management (BPM) and Service Oriented Architecture (SOA) enable organizations to optimize their processes and IT infrastructure. These technologies also enable companies to be agile to new business requirements. So, it is very important for CXOs to look at technology as a strategic tool rather than tactical requirement.

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