|
Four Information Technology Success Factors Drive 5X Revenue Growth for Best in Class
Recent research from the InterUnity Group captures four Critical Success Factors employed by Best in Class Companies to maximize corporate performance
Concord, MA (December 9, 2003) InterUnity Group studied 500 companies in 24 industries from the InterUnity 600 Knowledgebase and found four Critical Success Factors employed by Best in Class Companies to drive market leading value from their Information Technology investments.
The Best in Class companies significantly outperformed the median. They grew 5 times faster, were almost twice as profitable, and have a market cap price to sales ratio that is 70% higher than the median according to Dr. Richard Sneider, Managing Director of the InterUnity Group. Often cited as IT leaders within their respective industries, these companies include Northern Trust, Dell, Arrow Electronics, and Aetna.
The research provides insight into how Best in Class companies achieve superior business performance. The report provides executives with a framework to identify and prioritize new initiatives that can dramatically improve the business value of their IT investments.
Selected findings from the report include:
1. There are optimal bands of IT spending that vary by industry
IT expenditures averaged 4% overall and ranged from 1% to 11% depending on the industry. While it has been recognized that faster growing and more profitable companies spend a higher percentage of revenue on IT, the return varies greatly at each investment level, depending on the other Critical Success Factors.
2. The relative size of IT staff drives profitability
Best in Class companies average 45% larger IT staffs per $B of revenue. Best in Class also deploy these resources differently, using more packaged software and focusing more resources on tailoring applications to specific business requirements. The study also analyzed the impact of outsourcing on corporate performance.
3. Business Unit - IT Partnership is a key driver of IT effectiveness
Fostering Business Unit - IT Partnership is critical to IT effectiveness. Companies with higher levels of partnership are significantly more profitable and are growing faster. Researchers also found that IT governance and demand management can have a positive or a negative effect on overall corporate performance depending on the level of partnership.
4. Best in Class companies are early and effective users of new technologies within their respective industries
While many technologies have specific industry impact, the top three technologies with the greatest proven cross industry impact on corporate performance are CRM, Supply Chain Management, and Business Intelligence. The relative impact of these applications varies with the corporate environment and the industry. CRM, for example, has the greatest impact in high collaboration environments.
More Information
A summary of the study is available on the InterUnity Group website, http://www.interunitygroup.com.
Methodology
The report was created using the InterUnity 600 Knowledgebase, a comparative database of 600+ companies exceeding $1B in annual revenues, across 24 industry groups. Over 135 Business Performance and Information Technology characteristics are monitored, and updated quarterly. Best in class, as used in this report, is defined as the top 20% in annual percentage revenue growth rate.
Charts
Figure 1 Best in Class Corporate Performance versus Median
Performance Parameter Best in Class Median
Revenue Growth 48% 9%
Profitability 9% 5%
Price to Sales Ratio 1.49 .87
IT employees per $B Revenue 140 100
Figure 2 (Available) IT Budget as a Percentage of Revenue versus Profitability and Revenue Growth
Figure 3 (Available) Top Technology Drivers Associated with Corporate Performance
Company: InterUnity Group
|
| Related press releases |
Four Information Technology Success Factors Drive 5X Revenue Growth for Best in ... [2003-12-09 00:00:00]
Recent research from the InterUnity Group captures four Critical Success Factors employed by Best in Class Companies to maximize corporate performance
Concord, MA (December 9, 2003) InterUnity Grou...
|
|
UltimateBet.com Joins the Income Access Gambling Affiliate Network, Launching Wo... [2004-08-14 00:00:00]
Income Access teams up with Ultimate Bet to launch the UltimateBet.com affiliate program. By adding Ultimate Bet to its premier gambling affiliate network, Income Access will drive qualified traffic t...
|
|
Saugatuck and CFO Research Launch Business Process Outsourcing Program [2004-09-16 00:00:00]
Joint research program focuses on changing BPO buyer behavior, user expectations and decision factors
Westport, CT February 3, 2004 - Saugatuck Technology and CFO Research Services today announce t...
|
|
High-Tech Rising Star DolphinSearch Launches New Web Site to Target Fortune 100 [2004-08-27 00:00:00]
DolphinSearch, Inc., a leading provider of comprehensive electronic discovery solutions launched their new website this week to help bolster their rapid growth.
Ventura, CA August 27, 2004 -- Dolph...
|
|
Comodo Usertrust Feedback and Social Authentication Platform Emerging as a Power... [2008-04-03 10:28:26]
Considered by many online merchants as "Viral marketing in a box", UserTrust is being used to ignite viral marketing campaigns for free which is generating new revenue for eMerchants
Jersey City, N...
|
|
Y2G Associates Provides Strategic Sales Analysis to Software Vendors [2004-09-18 00:00:00]
New Win-Loss Analysis Service Increases Sales Productivity and Revenue. Y2 Associates Win-Loss Analysis solution is designed to help software vendors increase sales productivity and revenue. The offer...
|
|
Y2G Associates 2003 3rd Quarter Revenue Up 110% [2004-09-30 00:00:00]
Increased Services and Market Visibility Combined with New Clients Continue to Drive the Growth of Y2G Associates. We continue to deliver unprecedented value to software organizations by helping them ...
|
|
Synapse SE introduced its new Lead Referral Program that offers competitive comp... [2004-09-08 00:00:00]
Synapse SE is introducing a lead referral program that offers a broad range of business and individuals in the technology and training industry (i.e. consultants, value-added resellers (VARs), solutio...
|
|
Plutus Enterprises At Digital Hollywood Conference [2004-10-11 00:00:00]
With the Acceleration of Digital Media Consumption, Gerald Abrahamian Provides Insight On This Years Conference
Los Angeles, CA October 11, 2004 The acceleration of Digital Media Content creation...
|
|
StarForce is second on the list of 30 largest Russian IT Security companies in d... [2005-11-09 00:00:00]
StarForce Technologies has been mentioned in the rating of the largest Russian IT Security companies in November issue of Russian CNews magazine which covered the Russian information security market. ...
|
|
|
|
| Invisible Secrets Encryption Software |
 Keep those prying eyes out of your communications and prevent unwanted people from reading your private files. Invisible Secrets encrypts and hides data in places where not even your wife, boss, or a hacker would look for sensitive information. |
|
| MyPendrive |
 MyPendrive enables extended autorun functions for USB drives, like starting portable apps directly at drive connection. Version 2.0 offers enhanced backup functions and allows you to easily customize the drive label, icon and autostart menus. |
|
| Raise Data Recovery for Mobile |
 The Raise Data Recovery for Mobile product is intended for self-service data recovery of lost or deleted information directly from you Windows Mobile based PocketPC or Smartphone device. |
|
| Abee MP3 Duplicates Finder |
 The purpose of this program is to find all mp3(ogg,wma) duplicates on your computer and remove useless
files from your hard drive. As this program performs just this single task it copes with it much
better than other more universal programs. |
|
| Sonar Screensaver |
 This screensaver simulates a fabulous sonar detector dropped to deeps somewhere in ocean. It displays operator's display where located famous circular screen with rotating beam and many other information. It also allows leaving on-screen messages. |
|
| Supertime 2000 Class Timetable Software |
 ...is simply the best way to set class timetables. You get a tailored timetable in a fraction of normal time. |
|
| iProtectYou Pro |
 Internet filtering / parental control and network monitoring software that protects kids from harmful information on the Internet |
|
|
Latest press releases
