OutlookTheinformationedgeHowtogetthefullvalueofinformationintheneweconomyThejournalofideasthatcreatethefutureSpecialEdition:TheeSeriesIIOutlookOutlookSpecialEditionJuly2000OutlookispublishedbyAccentureJoeW.Forehand,ManagingPartner&CEOJamesE.Murphy,GlobalManagingDirector,Marketing&CommunicationsDavidCudaback,Editor-in-ChiefLetitiaB.Burton,ManagingEditorJacquelineH.Kessler,AssociateEditorContributingEditorHelenL.RietzEditorialOperationsPhyllisS.Kennedy,KatherineM.LewisDesign&ProductionFlinchumInc.ForfurtherinformationaboutOutlookorAccenture,pleasecontactMarketing&Communications:IntheAmericas1345AvenueoftheAmericasSuite18032NewYork,NY10105USA1(917)452-28041(917)527-5387FaxInEurope/MiddleEast/Africa/India60QueenVictoriaStreetLondonEC4N4TW(44)2078444000(44)2078444444FaxInAsiaPacific141WalkerStreetNorthSydneyNSW2060Australia(612)90055000(612)99543484FaxOntheInternetwww.accenture.comBye-mailOutlook@accenture.comWewelcomeyourcommentsandquestions.Pleasecontactusat:david.cudaback@accenture.comletitia.b.burton@accenture.comjacqueline.h.kessler@accenture.comOutlookSpecialEdition,July20001success.ThewinnersintheeEconomywillbethosewhounderstandhowtoexploititsfullvalue.Certainly,businessleadersmustmakeITatoppriorityandcarefullymanagetheirinvestments.However,itispeoplewhobringinformationtolife.Com-paniesmustempowertheirpeoplewiththeskillstoidentifytherightinforma-tion,sortitandprocessit.Theymustalsoinstillaculturethatencouragespeopletoshareinformationandapplyittoeffortsthatcreatebusinessvalue.Itiseasytoseewhytheeffectiveuseofinformationisacovetedassetintheneweconomy.Companieswithsuperiorinformationcapabilitiesoper-atemoreefficiently,deepencustomerrelationships,identifyopportunitiesforgrowthandrespondmorequicklytochange.Companieslackingthesecapabilitiesstruggletocompeteinaveryaggressivemarketplace.IhopeyoufindthisOutlookSpecialEditionusefulasyoureflectuponyourownbusinesssituation.ThinkabouthowITcancreateyourbusinessstrategy.Thinkabouthowyourorga-nizationcangetfullvaluefromenablingnewtechnologies.Finally,thinkabouthowyoucanengageyourpeopletoconvertinvestmentsintheITworldintoyourdesiredresults.IT+people=betterbusinessresultsTheLongViewTheadventofeCommercehasplacedapremiumonthepowerofinfor-mation.Consumerstodayenjoynear-perfectinformationwhenmakingpurchasedecisions.ThankstotheInternet,theyknowwhattheywant,andtheyknowwherethey’regoingtogetthebestvaluefortheirmoney.Suppliers,meanwhile,useinformationtobetterserveexistingcustomersandidentifynewones.Theylooktoinfor-mationtechnologytoestablishpart-nershipsandtohelpthemcreateneweEconomybusinesses.Morethanever,organizationsareplacingbigbetsthatinformationwillsupplytheedgetheyneedtoimproveoperationsandtooutper-formcompetitors.JustlookatITinvestmentasapercentageoftotalbusinessinvestment.In1990ITrepresentedaround20percentoftotalbusinessinvestment.Todaythefigureisover40percent.Thereadyavailabilityofinformationisbolsteredbythepowerfuldynamicofdecreasingtechnologycostsandincreasingtechnologyadoption.Fallingpricesmakenewtechnologiesmoreaffordabletoagreaterpopula-tion,andlowercostshelpjustifytechnologyinvestmentsforlow-valueactivities.Thisiswhatwecalltechnology’s“virtuouscircle,”anditwillcontinuetomaketechnologymorepervasiveinbusinessandcon-sumerapplications.Clearly,thisseeminglyendlesssupplyofinformation—andthedemandforit—willcontinuetogrow.Butjust...
