Make IT Spending Pay

By Erik Sherman  |  Posted 07-19-2002 Print Email

Make IT Spending Pay Off

What some companies are doing to get a better payoff for their spending on information technology.

Outsource the CIO Job
company Parsons Corp.
action The Pasadena, Calif.-based engineering and construction firm hired Perot Systems Corp.'s CIO John Thomas to do project management work. Thomas continues to work on contract for the company.
others doing it Delta Air Lines Inc., Heidrick & Struggles, ERCOT Inc.

Replace the CIO and Devolve the Position
company Polaroid Corp.
action Cut the IT budget by 40 percent, cut staff by 60 percent, scrapped an upgrade of business software, collapsed separate IT departments and replaced them with a central help desk servicing the entire company.
others doing it Nike Inc.

Put Business Person in Charge of IT
company BMC Software Inc.
action Replaced the old CIO with sales vice president Jay Gardner in an effort to boost IT accountability and business involvement in technology strategy.
others doing it Kmart Corp., Johnson & Johnson

Develop a CIO-led Tech Profit Center
company Yellow Corp.
action Named CIO Lynn Caddell to head Yellow Technologies Inc., a new technology R&D arm that develops new tech for the parent corporation for both internal use and sale to noncompany customers.
others doing it Webcor Builders, Bell Canada International Corp.

Elevate CIO Into a Super-CIO Position
company Safeco Corp.
action Named change agent Yom Senegor as both CIO and head of strategic planning to stem losses and boost IT-business cooperation.
others with strategic CIOs Eli Lilly and Co., Mattel Inc., General Motors Corp., Fidelity Investments


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