Recession fears have grown over the last three quarters as the implications of the US credit crunch have deepened and spread abroad to become a multi-region contagion. With costs for commodities, especially energy, soaring as well, businesses will have to adapt quickly to mounting economic pressures in order to maintain growth and profitability.
BearingPoint and HP initiated a structured review, based on a survey conducted by the Economist Intelligence Unit, of how the current economic landscape has affected the business outlook for UK CEOs and how, in turn, this will impact their expectations of the IT function.
Specifically, the survey was designed to reveal answers to the following key questions:
• How will CEO priorities, in the light of the credit crunch, translate into business implications for CIOs?
• How can CIOs best position the IT function for these predicted changes?
• In what ways are CEOs expecting CIOs to use information technology to improve the situation?
One of the findings of the CEO survey which bucked reported trends was confidence. Despite media consistently claiming that the economy looks certain to slow to dangerous levels, Britain’s CEOs remain more optimistic. Whilst there was concern, the majority felt that with good planning and sensible actions the next 12 months were navigable. In fact many felt that in areas such as customer focus and cost reduction, the financial climate had simply forced them to take actions which were probably overdue.
This survey revealed some new thinking that businesses can utilize in times of economic slowdown. Review the survey analysis.