Mountain View, California – (The Hosting News) – May 1, 2006 –
According to business technology optimization (BTO) software provider, Mercury Interactive Corporation, failure to address IT business risk can jeopardize business outcomes.
Results from a new report produced in cooperation with the Economist Intelligence Unit entitled, ”Managing IT Business Risk: Safeguarding the Organization from IT Failure” also outlines potential blind spots for CIOs and IT leaders worldwide.
is based on a global survey of more than 1,000 IT executives from 22 countries throughout the United States, Asia-Pacific (APAC), Europe, and the Middle East (EMEA).
The report details how companies around the world define IT business risk; identifies who is accountable for managing IT business risk; and confirms the approaches and strategies that global companies use to help prevent IT failures and problems from disrupting business results. Key findings include:
The most feared business outcomes from IT failure are revenue loss, customer or reputation loss and cost escalations
The departments most vulnerable to IT failure are supply chain, production, finance and customer service
Difficulties in coping with change figure prominently as sources of IT failure
– IT governance and project management are two of the most important areas in which firms will invest over the next year to improve IT performance; and
– For many companies, one in two IT initiatives do not deliver expected business outcomes.
Denis McCauley, Director of Global Technology Research at the Economist Intelligence Unit commented, ”The global research reveals that there is a blind spot in business today regarding the risk that IT failure creates in the business. Many companies do not manage IT business risk in a coordinated fashion, which should be a concern given that IT failure can lead to serious business problems, including loss of revenue and customers.”
Christopher Lochhead, Chief Marketing Officer at Mercury added, ”Escalating IT change and complexity are conspiring to create a new epidemic of business risk. The antidote is clear. First, understand the blind spots in IT that are driving the most risk into the business and then establish the right mix of process and automation to get control over change and drive predictable business outcomes.”
The Economist Intelligence Unit is a division of the Economist Group. Sister companies include The Economist newspaper, CFO magazine, and an array of other specialist publications. The Economist Intelligence Unit has been providing information and advisory services to the global business community for more than 50 years through many channels, including print publications, electronic media, and conferences and client meetings organized under The Economist Conferences brand.
Mercury Interactive Corporation provides business technology optimization (BTO) software and was founded in 1989. Mercury provides software and services for IT Governance, Application Delivery, and Application Management.
To learn more about Mercury Interactive Corporation, please visit: http://www.mercury.com.