NRI Papers
No. 188 August 1, 2013
  IT Barrier Stands in the Way of Corporate Change
— Inadequate IT management impedes review of business strategy —
 
Koki YODOKAWA

These days, many companies face the need to embark on major business change. While information technology (IT) can act as a means of accelerating business change, it can also stand in the way of change. Whenever IT cannot change at the same pace as business does, IT constitutes a "barrier to change."

This paper follows on from "Corporate Change and the Use of IT," NRI Papers, No. 178, published on October 1, 2012, and examines the area(s) of business strategy that companies are trying to review and the change that they are implementing. This paper also clarifies how IT has been contributing to the achievement of the desired effects through change. Based on these analytical findings, this paper proposes the use of IT that contributes to corporate change.

In December 2012, Nomura Research Institute (NRI) conducted a questionnaire survey of leading companies in Japan and received responses from 603 companies. The results of this survey revealed a problem in that "in spite of their recognition of the need for reviewing business strategy, many companies have actually been unable to do so." It was also found that the reason behind these companies not being able to take a step forward in reviewing business strategy was inadequacy in terms of both "change management" and "the use of IT for change."

Of these two impeding factors, this paper focuses on the insufficient use of IT. The survey results confirmed that companies that were unable to review their business strategy were similarly unable to achieve the desired effects through the use of IT, and that the root cause behind their inability was attributable to inadequate IT management. Merely implementing perfunctory IT management will not enable companies to surmount the "IT barrier." Instead, they should adopt a more proactive approach that goes one step beyond their previous efforts.

Contents
I Overall Structure of Corporate Change and the Use of IT
II Premises: Correlation between Corporate Change and the Use of IT
III Use of IT that Does Not Lead to Achieving the Desired Results
IV Hypothesis: Root Cause is Inadequate IT Management
V Breaking through IT Barrier Hindering Corporate Change

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