Collaborative business strategy boosts bottom line

Solid executive leadership needs a strong foundation in collaborative technology systems, according to the recent Digital IQ report from PricewaterhouseCoopers. Companies where the CIO and other C-suite members have a strong relationship are more likely to maintain high performance levels. Businesses that used technology for collaboration, such as ERP software, were typically in the top quartile for revenue growth.

“Our survey found that companies with collaborative C-suites intertwine business strategy and information technology and are often rewarded with stronger company performance,” wrote Chris Curran, a PwC principal and a lead author of the report. “They can also adapt quickly to market changes to maintain an advantage over competitors.”

High levels of collaboration between the IT department and C-suite lead to better bottom-line results. Having a solid technology foundation helped executives gain a greater understanding of the company’s IT needs. Due to budget constraints, executives and IT leaders can often be at odds since C-suite members may not understand IT risks. However, collaborative businesses tend to have a better understanding, and IT is more directly linked to corporate strategy. These collaborative companies would have better results, such as higher market share and greater profitability. IT initiatives were also more likely to be on time and within the budget.

Driving better results with technology

With new initiatives such as mobile and social media marketing, executives need collaboration with IT departments for success, according to Information Week. While some companies drifted away from IT spending during the recession, there will be a greater emphasis on technology updates. The shift to mobile Internet use will require IT leaders to have a more significant role in project development and management.

The rapid adoption of smartphones and tablets will present new challenges for companies. Businesses will need to adapt their data management capabilities because additional mobile users will generate more customer information. According to the PwC study, executives and IT departments that collaborate will be better prepared to manage extra data. Mobile investments were expected to make up a major portion of IT spending.

Strong collaborators were more likely to see big data as a way to gain a competitive advantage. These companies had the technology in place to manage data more effectively than businesses that didn’t have strong relationships between the C-suite and IT leaders. Seventy-eight percent of strong collaborators reported sufficient big data analytics capabilities.

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