How IT enables business

November 15, 2006, 10:53am PST | Length: 00:02:34
McKesson CIO Randall Spratt says IT's priority mission is work side by side with business units to help the organization stay competitive.

Transcript

How IT enables business

>> I'd finally like to ask you for some recommendations, in terms of how you build a culture in which innovation is at a sore as opposed to, I think many IT shops are more focused on well, we have to cut costs, cut costs, lower costs. And while that's important, it becomes kind of the, the obsession as opposed to really thinking about, you know, perhaps, you might be able to innovate your way to lower costs as opposed to just cut.

>> Sure. It, it's very easy to succeed when success means don't screw up and stay under budget. And if those operating metrics, your operating principals, you're going to calcify and as each year's goals become more and more difficult, you find yourself in the situation you've just described. Where the only way I have to keep succeeding is to keep cutting costs. But that's not IT's primary mission. IT's primary mission is to enable the business. It's to allow the business as a whole to become more competitive. To allow the business as a whole to be able to take share away from, from our competitor's and do that more efficiently than they can. So, the, the key to innovation is to maintain a close tie with our business's and their strategies and assign a part of the organization to plan cooperatively, side by side as, as service partner's with those business's. And drive those innovations together. They understand what their customer's need. They understand their business driver's and their cost model's and we understand what information technology can do. And what it can bring to the table. The better we're able to formulate that direction together, the better we can then operate at the economies of scale that you would expect from a corporate IT department. Because we can take those same learning's from each business unit, collect them together through a very successful governance process and allow those business's to see each other's innovation's, to see each other's IT spend and leverage that as each business succeeds in their own area. So, if you're succeeding around a, business warehousing initiative, and we invest in that, another business can leverage that and, and adopt it on their own. So, I think our value comes from the, the initial innovation then multiplying that innovation out to the, the other business units within the Kessia.

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