Developing an E-Business Strategy Critical for Aerospace...
Added: (Mon Nov 29 1999)
Pressbox (Press Release) -
Developing an E-Business Strategy Critical for Aerospace/Defense Executives, CSC Study Says
EL SEGUNDO, Calif., Nov. 29 -- The most critical issue confronting executives in aerospace and defense industries around the world is the need to develop an e-business strategy, according to a study by Computer Sciences Corporation (NYSE: CSC - news).
The company's 12th Annual Critical Issues of Information Systems Management Study, which surveyed more than 800 executives in a wide range of industries, revealed that more than 90 percent of the aerospace/defense executives polled declared e-business their top concern.
"Behind aerospace's staid, cautious exterior stands a high-stakes gambler willing to bet on the future payoff of Internet technology," said Keith Wilman, vice president of CSC's U.K. division.
According to the CSC study, aerospace/defense trails only the transportation and media industries in claiming that it already has an e-business strategy. Where it falls short is in having an effective strategy for using the Web to accomplish its business objectives.
"Aerospace may be saying that it hasn't yet done a great job at this so far as e-business goes, but it certainly knows the job has to be done," noted Wilman.
Aligning information systems (I/S) and corporate goals also remains a major concern to nearly 82 percent of aerospace executives, the highest rating any industry has given this issue in the survey.
"It's strange to find that aerospace rates this issue so highly as they've been focused on this issue for as much as five years already," said Wilman. "In fact, the industry has already taken major steps along this 'alignment' road."
Survey results indicate that the aerospace/defense industry has already realized important business benefits from its significant I/S investments in the past and plans to continue to make investments in the future. For example, executives predict a 7.6 percent increase in I/S spending during 1999, for an average budget of $86 million, which is somewhat higher than the $69 million average for all industries. Executives believe that expanded budgets will result in reduced lead times, improved product quality and significant economies in production. Aerospace executives also chose restructuring the I/S function as one of their top five issues.
CSC has queried I/T executives on critical technology issues since 1988. The 803 respondents to this year's survey include chief information officers and vice presidents and directors of technology departments representing organizations in more than 18 different areas such as financial services, healthcare, consumer goods, aerospace and government. Of the total respondents, 35 percent represented North American organizations, 20 percent were from European companies, 14 percent were from Australia and New Zealand organizations and 31 percent represented companies from Asia.
Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. With 54,000 employees in more than 700 offices worldwide, the company tailors solutions from a broad suite of integrated service and technology offerings, including e-business strategies and technologies; management and I/T consulting; systems development and integration; application software; and I/T and business process outsourcing.
Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. Through numerous agreements with hardware and software technology firms, the company is able to identify and manage solutions specifically tailored to each client's needs. CSC had revenues of $8.2 billion for the twelve months ended October 1, 1999. Its headquarters are in El Segundo, California. For more information on the company or the Critical Issues Survey, visit the company's web site at www.csc.com.
Additional Survey Results from Aerospace/Defense Executives polled in Computer Sciences Corporation's 1999 Critical Issues of Information Systems Management
Critical New Technologies for Adoption in the Next Five Years: More than 63 percent of executives ranked e-business as the most critical new technology to adopt, with Internet and World Wide Web technologies second at 54.5 percent. Encryption and electronic signature, intranets and knowledge management followed respectively.
Web Sites: All executives said they had Web sites, however 55 percent said those sites were strictly informational, with 18 percent interactive, 18 percent able to deliver information and nine percent able to make transactions.
Top Functions New Systems will Support: Finance, accounting, administration and HR tied with customer service at 55 percent as the two top areas for new systems. Y2K compliance and logistics, distribution and warehousing, also tying at 46 percent, came in at third and fourth.