More Evidence Alignment Pays
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The Business Technology Management Institute, a research think tank organized by Faisal Hoque, chairman and CEO of BTM Corporation, and boasting several top IT academics like James Cash, V. Sambamurthy and Robert Zmud, has released a study on the benefits of alignment and what the authors call "convergence," an even higher level of business-IT cooperation and coordination than mere alignment. |
Called the "Business Technology Convergence Index," the study looks at large corporations in 50 industries and concludes:
...enterprises with a more nearly converged business technology management exhibited superior revenue growth and net margins relative to their industry groups between 2002 and 2006:* 12% average annual revenue growth vs. 4% for their industry groups
* 36% average annual earnings per share growth vs. 7% for their industry
groups
* 6% higher EBITD margins than those delivered by their industry groups
* 4% average higher return on equity
* 8% average higher return on assets
* 14% higher return on investments
So if you need evidence that alignment (or convergence) pays, download the PDF here.
Comments (1)
I agree convergence or alignment are the new buzz words. From CIO, to consultants to head hunters everyone is talking about about alignment of IT strategy to the business needs.
More related info is on McKinsey Survey http://www.mckinseyquarterly.com/article_page.aspx?ar=1980&L2=13&L3=13&srid=27&gp=0
Posted by Raj | August 2, 2007 1:05 PM