Paying Attention to Paradigm Shifts Can Pay Big Dividends
In designing IT's performance metrics, the savvy CIO must keep an eye toward the future. Shifts in how their industry delivers value can have huge consequences on the company's market share and viability in the marketplace. Being a student of the industry their company operates in is not an option, but rather essential for positioning IT to respond quickly and effectively to changing business conditions.
Consider the impact mail-order DVD rental services had on the DVD storefront model of distribution. Now consider the impact that the renting of movies "on demand" with managed downloads will have on the DVD mail-order rental business. Or look at what E-bay has done to retail sales pricing and competition.
Fundamental shifts in the value delivery systems within an industry can drastically alter the landscape for a company. CIOs who stay abreast of these well-telegraphed changes can take steps to enable their company to meet such changes and challenges rapidly and cost effectively. Clearly, core areas that IT needs to be sensitive to are industry trends and potential paradigm shifts. Metrics that track IT's efforts in this area could provide major dividends for insuring an organization can sustain growth.