Companies Clean House To Improve App VisibilityCompanies Clean House To Improve App Visibility

Planning ahead is always recommended. But ad hoc changes are the reality. Accounts payable implements an expense system, senior execs switch initiatives in midstream, or a new customer-relationship management app boosts customer-retention rates. When changes occur, managers and workers must adapt.

Even as revenue numbers rebound to respectable levels in some cases, companies continue to look for ways to cut costs and simplify IT operations and business processes. Nearly half the sites interviewed in information Research's Evolving IT Priorities: 3Q 2003 study are focused on cost cutting and optimizing business processes. In doing so, many tried-and-true business functions are being improved, altered, or dropped altogether--and IT is making it all happen.

Software is the key component of nearly all of these changes. As companies grapple with refining business and technology, they're finding it necessary to look for ways to improve the usability of applications. Two-thirds of companies surveyed in June about IT and business initiatives report that improving the function of apps is a business priority. Eight in 10 companies with annual revenue of $1 billion or more are evaluating their apps to make them more user-friendly.

To address usability issues, more than half of companies surveyed find they need to better integrate apps. Many are turning to app-integration tools or Web services, including XML, while some are re-evaluating the quality of the apps they've installed. By doing this, companies might find that simplifying the software that supports key business processes will bring expenses down and increase productivity.

How much of your IT budget will be allocated to improving business operations in the second half of 2003? Let us know.

Lisa Smith
Managing Editor, Research
[email protected]

Integration Focus

Are application-integration technologies on your IT group's projects list?

More than half of large companies surveyed by information Research have app integration on their planned-projects list, compared with 42% of small businesses and 39% of midsize companies. However, larger companies are more likely to have legacy apps that require integration technologies and programming to knit them together.

XML Concentration

Does your planned-projects list include XML-based applications?

The rise of XML-based applications speaks to the increasing business need to enhance and update legacy systems. For three out of five sites we surveyed, XML-based applications are a high priority in the coming quarter. XML is trending up from last year and is expected to continue to grow as application integration remains a high priority. Nearly 70% of midsize companies report having XML-based applications on their planned-projects list for the remainder of this year, compared to 59% of both small and large organizations.

Web Services Acceptance

Is Web services on your IT organization's planned project list?

Web services, including XML, Soap, WSDL, and UDDI, are a growing part of application-integration strategies. While large businesses are more likely to adopt Web services, small companies also see the value of these integration technologies. More than half of sites with annual revenue of less than $100 million have Web services on their list of planned projects in the second half of 2003, while 63% of companies with $1 billion or more in annual revenue do. Adoption is swift, but there are still security concerns and other limitations that may prove risky to some companies.

Software Centric

Is improving software quality a priority for your IT organization?

As companies attempt to link together applications to update or refine various business processes, they must evaluate and understand the quality of the applications that support their operations. Poor software quality can cause bugs or glitches in the integration process and can put pressure on financial resources as programmers get bogged down fixing problems. This helps explain why improving software quality is an action item for three-quarters of the 300 business-technology professionals surveyed in information Research's Evolving IT Priorities: 3Q 2003 study.