This is part two of a series covering the results of CIO Agenda 2007. First part is here.

Business priorities

Companies know they must prepare for the increased competition and they place “Improving business processes” as they number one priority for 2007. In 2006 “Improving business processes” was also on the first place indicating longer term planning.

“The need for revenue growth” is a close second as expected. Due to increased competition this year, the business leaders must pay closer attention to this one and bring it to second place from the fourth place in 2006.

On the third place is also a priority related to increased competitiveness: “Improving the effectiveness of the enterprise workforce”. Interestingly this was not in the first ten last year. One can speculate that after investments in tools and machines, now the business leaders decided to invest also in the workforce.

The extensive growth phase is also indicated by the place of “Controlling enterprise-wide operating costs”, 5 in Romania and 2 world wide (according to Gartner).

IT Budgets

IT budgets overall increase by 23% in 2007 versus 2006. This indicates a strong commitment of business leaders towards IT. Business leaders are convinced that investing in IT will help them achieve their goals.

IS Organization Capabilities

IT organizations have the funds they need (they just received a 23% increase in their budget) and deliver services to meet business expectations.

Most of the IT organizations also deliver the technology innovations needed by the business and have the necessary flexibility to adapt to current extensive growth phase.

Despite having funds and delivering excellent services, the IT organizations do not have enough business skills and CIO is not a player in business strategy. The two are connected: without an organization with strong business skills, the CIO cannot be a player in business strategy.

The CIOs must take this opportunity – increased budgets, extensive growth of the enterprise – and work hard to build an organization with strong business skills. This is a window of opportunity that will last probably 2 years.

This is part two of a series covering the results of CIO Agenda 2007. First part is here.