Foreword

Information technology (IT) has always been a wildcard in business, a source of opportunity and uncertainty, of advantage and risk. Business executives often view the IT function with apprehension, as the province of technocrats primarily interested in new features that may have little relevance to real-world business problems. Technology executives, on the other hand, often consider business managers to be shortsighted, lacking the vision to exploit all that technology has to offer. Both struggle as they attempt to implement increasingly complex systems in the face of rapid change in business and technology.

Yet, we have, since the inception of business computing, tightened our embrace of IT and for good reason. Despite exasperating moments, technology transforms how we do business. Over the past thirty years, it has become embedded in the way we define and execute strategy, how we organize, and how we create and deliver value for stakeholders.

The recent decade has added considerably to the mystique and the magic of IT. Something dramatic happened to technology in the 1990s, although it is probably too early to discern the full impact. Many of us remember the first time we opened a browser and gained access to the World Wide Web (WWW). For some executives who had lived their lives avoiding technology, a light went on, and they glimpsed the potential of what previously had lain deep within the silicon switches that processed data in the basement of the organization.

Then came the boom of the late 1990s, when the capital markets caught the fever. Stories of "20-something" billionaires, who only a few years earlier plotted their business ideas on napkins, grabbed our attention. As the new century dawned, the bubble burst and the tech-heavy NASDAQ lost more than half its value within months as spending for IT equipment and services dropped. The world economy headed into a downward spiral, and executives young and old found themselves in pretty much the same situation, as they attempted to make sense of which opportunities were real and which were nothing more than hype.

Yet, some things are clear. The world is forever changed. IT has burst forth from its safe containment in the basements of corporations. Business executives have begun to wrest control from IT executives who have failed to step up to the challenge of running IT units as a business. Technology has become a core enabler and, in some cases, the primary channel through which business is done. The world is smaller and the "global village" is quickly becoming a reality. Physical location matters less than it did. Borders and boundaries, ownership, and control have become less rigid. And, more importantly, there are still new frontiers to explore, new challenges to meet, and new magic in store.

The objective of this book is to help business executives who are struggling to identify and capitalize on the full potential of IT. The book offers practical insight from two authors who have helped guide clients in building highly effective IT departments. The book is based on real-world, hands-on experience, and the frameworks and recommendations have been developed through practical experience across a wide variety of industries, company sizes, and technology environments. The authors have clearly documented their insight and have worked hard to highlight prescriptive solutions to share with the reader.

This book will help the CEO, CFO, CIO, technology consultants, and newly promoted IT directors effectively navigate the whitewaters of IT. For the CEO and CFO, this book offers an opportunity to learn how to effectively choose and work with an IT leader. More importantly, they will learn the right questions to ask and the appropriate level of oversight necessary to ensure that IT becomes a competitive advantage for the company or, at a minimum, a well-run internal service department. For the CIO and IT management, this book offers an opportunity to more effectively lead IT as a member of the senior management team and as the operating head of the IT business within the business.

In summary, this book is important reading. It offers practical, real-world insight and pragmatic no-nonsense approaches for people who have a stake in corporate IT. In today's rapidly changing and highly competitive environment, the more effectively you exploit and manage IT in your business, the more successful your company will be. I hope you enjoy the book.

Professor Lynda M. Applegate
Henry R. Byers Professor of Business Administration
Harvard Business School