Our last Online Smart Enterprise Exchange brought together about 100 IT and business executives for a lively online discussion about being able to innovate in a difficult economy and the role of IT automation on productivity. J. Michael O'Dell, CIO, Pacific Coast Companies Inc. (PCCI) and Vercie L. Lark, CIO, Embarq, were among those speaking and answering questions from our participants about a wide range of topics.

Rather than recapping the presentations (you can download the podcast here), I'd like to share some of the questions and comments we received because I'm sure you have similar experiences and concerns. What's more, you may be surprised at some of the responses.

For instance, if you think that worker productivity has suffered as a result of the economic downturn, think again. More than half (55.6 percent) of the 21 respondents to an informal poll question during the exchange, said that poor productivity was not the case at their business. According to one participant, a systems architect for a leading U.S. logistics company, "If anything, the economic downturn has stressed the importance of productivity for the workforce. The consensus [among business leaders] is that increased productivity — thanks to automation — proves the value-add for our workers." As workers see the return on their investment, he said, "They are driven to maintain the momentum."

In fact, many businesses are continuing the process automation efforts they already have under way even though there might be fewer resources available. The majority (42.9 percent) of those responding to the online poll said the economy is not having an impact on their plans.

"Primarily, we believe that our current processes and automation plans are well executed and this will continue for the foreseeable future," said the logistics IT manager. "Of course, we continually evaluate those efforts to determine where additional cost savings could be realized. We look closely at the expected ROI to determine which areas are automated first."

When it comes to ROI, half of the participants said the average length of time their current IT projects have to demonstrate payback is one year or less — much shorter than in the past.

However, one attendee asked whether the projects are actually less than one year in duration or whether they are being split into subprojects with staggered delivery and ROI for each. "Net present value (NPV) / ROI for automation can look great on paper but is difficult to achieve because the business has to take tough actions to achieve the bottom-line benefit," the consultant said.

Several people said they are reevaluating their project portfolios and reprioritizing requests. One person noted that "ROI is both industry-specific and initiative-specific. Depending on the type of automation, you could see a range of values." Short ROI cycles provide more successes in a given period, and "everyone likes to be associated with them," another participant added.

The impact of automation on customer experience was also discussed. "It's important to ensure that these initiatives do not have a negative impact on the company image in the eyes of the customer and your local operating communities," one manager said. "It's a fine line to walk — are businesses being viewed as a responsible corporate citizens if we are downsizing as a result of automation?"

Smart Enterprise Exchange will continue to explore the topics of IT Productivity and Optimal Automation with additional best practices, insights and resources beginning in May. If you would like to contact any of our speakers or forum participants, please let me know ateditor@smartenterpriseexchange.com.

Paula Klein
Editor
Smart Enterprise Exchange

Leadership is a quality that's valued by all, achieved by few. While many of us have the right attributes — independence, integrity, determination and intelligence, for instance — we can't always get others to follow along or get quick resolutions to tough problems.

For CIOs, leadership is particularly challenging because the role was historically defined as a support function and a service provider. But as we explore this month in our Smart Practices article, strong CIO leaders are even more in demand. We profile several IT leaders who are forging ahead with solutions that help them to link IT services with the business.

What distinguishes these CIOs? While they are very different from one another, they share some common traits: They communicate well, and are forthright and decisive in using IT for business goals. For Rachel Johnson-Kelly, CIO at the Australian Securities and Investment Commission, confidence in what she and her team are doing runs deep. Dean Lane relies on his experiences as former CIO of Allied Signal and of Plantronics Inc., to drive results and to help other CIOs meet the challenges of the job. And at Terex Corp., CIO Greg Fell is leveraging the trust and track record his team has built up to weather the current economic challenges.

Staying in constant communication with stakeholders was also a key message delivered recently by Geoffrey Brown, Senior VP and CIO at Inova Health System. Brown, who shared his best practices with attendees at a recent gathering of members at our Smart Enterprise Exchange event in the Washington, D.C., area, said that taking a leadership role in electronic medical records management should result in more efficiency and lower costs for Inova. It will also provide better service for patients and physicians by automating manual processes. For more background and details, download his presentation here.

Another Exchange member, Gary Plotkin, CIO at OneBeacon Insurance in Boston and formerly CIO at The Hartford Insurance Company's Property & Casualty business, discussed ways to "spend through" the soft market. Specifically, he offered members insights such as how to lower maintenance costs and leverage both internal and external business partnerships to show top-line revenue growth. You can download the slides from his presentation here.

Even in some of the hardest-hit market sectors, such as retail, innovators are defying the odds and preparing their businesses for the future. Tesco, the multinational, U.K.-based hypermarket company, is a prime example of a business that's using IT to help it rethink everything from store locations to customer-checkout experience. As you will find in an upcoming interview with Tesco's Group Technology & Architecture Director, Mike Yorwerth, IT is enabling key business processes — whether they are improving inventory replenishment or streamlining supply chain efficiency among partners.

It's easy to lose sight of the need for leadership development when you're knee-deep in the challenges of daily IT management, but the effort is worthwhile. No single silver bullet will make you a stronger leader, but I hope it's helpful to find out how some of your peers are faring and to examine — and adopt — their well-tested techniques.

Paula Klein
Editor
Smart Enterprise Exchange
editor@smartenterpriseexchange.com