PMcrunch

Since 2000, we have seen a bit of a smoldering of the red hot ambers from pre-2000 IT, and only gradually are things coming to a new order.  But there are some emerging themes. 

1. IT budgets are down from what they were and from what was forecasted pre-2000.  However, this reminds me of manufacturing figures that we have seen for years.  The manufacturing sector as a percent of the total has steadily decreased - due to efficiencies, largely from information technology – yet the world economy consumes more manufactured goods than ever before.  Info tech budgets were increasing during that period of manufacturing decline, but it appears that it has become info tech’s turn at a sort of ‘decline’ - albeit in a different way!

2. Many people assert that Information Technology IS – or has become - the business.  I think, however, that it is only so in terms of operational infrastructure.  Business itself really has not changed as much as it would seem; the business is still about bringing forth the right products and services, marketing them effectively, managing operations, forecasting, hiring and managing people, making financial decisions, etc.  Of course, all of these are supported by info tech.

3. It is often cited that we have become so dependent on information technology that failures can result in a complete shutdown of the business.  An example is the shutdown of an intranet, which can effect operations from order process through fulfillment, and all internal operations between.  The intranet example, however, hits me as similar to a factory shutdown when there is a storm, or a ship being delayed because of high seas.  These are all just business risks, and the activities are operational, but the decisions and responsibilities/accountabilities are those of upper management.

4. One of the interesting and emerging aspects about Business Process Improvement (BPI) is that, with information technology an ubiquitous part of operations, newer technologies are permitting the [tag-tec]reengineering of IT!  One of the biggest trends I see is in web services, where business functions are bundled, and those bundles are engineered to be well-oiled machines.  Then, in agile businesses, those functions can be assembled and re-assembled like lego blocks to support re-engineered processes that support new or different business models, or refined and streamlined processes.  In either case, there would seem to be fewer or smaller armies of IT programmers, and more business analysts and other supporting business-oriented people.
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John Reiling, PMP
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