CIOs In Search of IT Simplicity

28.06.2012

Spelling out clear goals for each person on the team has kept GE's simplicity quest on track, she says. CIOs in business units have to report to her and their business managers quarterly about whether they made their goals to, say, eliminate a given number of ERP systems. Begley must meet yearly objectives set with Chairman and CEO Jeff Immelt and the board. "We have dashboards with names, dates and the people who care."

She expects payback from this work in two to three years and plans to invest some of the returns in cloud and mobile technology.

Simplicity doesn't happen naturally, so CIOs should make detailed plans. Tactical moves include whittling down the number of IT suppliers you count as essential, which streamlines more aspects of the operation than technology and support choices do. This may lead to fewer contract negotiations, better pricing and stronger relationships. At GE, each business unit has now chosen core technologies and vendors and intends not to deviate, Begley says. As key software is upgraded, GE's IT group will avoid much customization, which adds complexity and cost. "No matter what you're running, you're going to be more competitive if you go faster. I'm bringing that mind-set to IT," Begley says.

McDonald's uses times of major operating system upgrades to reduce the number of applications and tools. When it recently moved from Windows XP to , the company eliminated various personal productivity applications that employees had brought in. "It would have cost us money to make them work on the new OS," says. IT goes through a similar examination when making changes to infrastructure.