AMR Reveals Top 5 IT Trends
November 5, 2008 - Profitable growth through new products, trade promotions and other key initiatives was the predominant focus of consumer products companies in 2008. But, in a challenged economy, IT budgets fell from 2.9 percent of revenue in 2007 to 2.5 percent in 2008 as more consumer goods companies saw IT as a target for cost containment and not as a source of innovation.
On November 4th, Lora Cecere, vice president, consumer products, AMR Research highlighted these key findings from the 2008 Tech Trends research report, published in partnership with CGT, during a live Web seminar. Pieter Schoehuijs, vice president and chief information officer for Church & Dwight Co. Inc., was also on-hand to lend some real-world context to the study's findings.
On November 4th, Lora Cecere, vice president, consumer products, AMR Research highlighted these key findings from the 2008 Tech Trends research report, published in partnership with CGT, during a live Web seminar. Pieter Schoehuijs, vice president and chief information officer for Church & Dwight Co. Inc., was also on-hand to lend some real-world context to the study's findings.
As identified in yesterday's web seminar, here are the top 5 technology trends that are impacting the consumer goods industry, including commentary from Cecere and Schoehuijs:
> Application investments are shifting from back office to front office with a focus on business intelligence and knowledge management. Our survey found that the respondents planned to use and/or implement business intelligence and performance management applications more than any other application in 2008. "Business intelligence is an area where you can really make a visible difference and wow your colleagues," shared Schoehuijs.
> There is greater project risk with the automation of less-disciplined processes like innovation and trade fund management. In trade promotion management, one in three projects fails. Meanwhile, 27 percent of new products fail because they do not meet consumer needs. According to Cecere, here exists "a greater need for line of business partnerships with IT, flexible systems and for strategic vendors to step up to the plate and help the industry."
> The use of downstream data is promising, but still evolving. Based on the data, AMR expects the average company to spend $10 million in 2009 to build a DSR. "However, what limits the market is the evolution of applications to use the data and business leadership to drive the change management around the use of the data," said Cecere.
> For the CIO, funds are tight. Cecere points to a need to get more for maintenance dollars spent and a need to do more triage on projects to ensure a return on investment. "In general, the economic climate has put a lot more focus and scrutiny on making sure that IT provides value," said Schoehuijs.
> The shortage of knowledgeable resources both internally and externally is today's reality. "Companies are trying to figure out how to acquire and maintain talent in a cost-effective manner," said Cecere. In 2008, headcount represents 16 percent of the IT budget while outsourcing non-strategic IT work to external partners totals 13 percent.
Click here to listen in on yesterday's web seminar or click here to download the entire Tech Trends 2008 research report and find out how your peers responded to questions on spending, current use, planned implementation and perceived benefits of performance management, manufacturing operations, RFID, demand signal repositories, business process outsourcing, innovation and more.