According to a study released by RSM McGladrey, executives of U.S. manufacturing and wholesale distribution companies reported that information technology (IT) is of increasing importance – and concern — to their business operations. While enhancing existing systems and further training will be priorities in the coming year, IT risk management and disaster recovery systems are integral areas that may suffer as spending is cut.
RSM McGladrey’s Information Technology Report was based on the results of the firm’s 2008 Manufacturing and Wholesale Distribution National Survey conducted earlier this year. More than 960 industry executives – representing 911 companies – responded to questions on current business conditions, growth strategies, innovation, cost management, technology initiatives, operations and globalization.
According to the findings, executives report that technology systems continue to play a vital role in operational and production efficiencies and security of companies in all industries. Seventy-seven percent of respondents indicate that IT is increasingly critical to their business. However, 55 percent say that their technology strategies are linked to their overall business plan and only 46 percent say that their systems are serving their operational, reporting and data analytics needs.
“When evaluating improvements that can be made to the performance of a company’s IT systems, it is important to consider their current objectives as well as where they want to be in three to five years,” said RSM McGladrey Managing Director Gordon Opland. “Many companies solely target their immediate needs as opposed to developing a strategic IT plan that is monitored. With the evolving nature of technology and business, this approach does not properly align IT initiatives with business needs.”
Source: RSM McGladrey