IT Management is Really IC Management

January 5, 2010 by  

The KNOW Network just declared IT Departments Fail to Deliver Value based on a global survey of IT executives by Axios Systems. Here are a few of the data points they cite:

  • 57% believe their systems do not deliver the value expected by the business
  • 64% are unable to provide the business with real-time quantifiable metrics demonstrating the value of their services
  • 39% believe that business decision-makers still do not understand the value IT brings to the business.

The reason that IT management is so hard is that it is so closely tied to IC management. And companies are doing an even worse job with IC than they are with IT.

Let me explain. Information technology (IT) is the technology that created the knowledge era. Humans have had lots of great thoughts for thousands of years. But we got smarter when we could capture, organize and share our  thoughts through IT. The databases, systems and processes that IT provides are the infrastructure of the knowledge side of the business aka its intangible capital.

Although intangible capital now accounts for two thirds of the value of the average business, almost no companies have instituted specific intangibles management disciplines. These include inventorying, modeling, assessing and measuring intangible value creation and performance.

Without a full view of the intangible side of business, its knowledge factory, it is impossible to appreciate, manage and measure both the IC itself and the IT on which it runs.  If you are in IT, it’s time for you to pay attention to IC.

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