Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

The best tech investment I never made: Four CIOs' tales

Minda Zetlin | Aug. 14, 2012
IT leaders must learn to tell whether a new technology will transform their businesses -- or just become the next boondoggle. Four CIOs offer their perspectives.

A few years ago, when Bill Weeks was CIO at a leasing company, a big vendor pitched some software intended to manage leasing throughout Europe. Weeks was skeptical. "We noticed that half the stuff they were showing us was PowerPoint slides and not actual functionality," he says. "We decided it wasn't strong enough to run a business on."

He and his team decided to pass.

It's the kind of decision that CIOs have to make all the time. With the pace of tech innovation growing ever faster, IT leaders find themselves under increasing pressure to make one difficult decision over and over: adopt a promising new technology and risk the unknowns that a new implementation brings, or decline -- and risk letting their companies fall behind the technological curve. The wrong decision could destroy a career.

Saying no will often leave a CIO wondering what might have been. But in the case of the leasing software, Weeks got a definite answer. Some time after taking a pass on the system, he took a job at a different company -- one that had already implemented that software. Sure enough, "the vendor had oversold and underdelivered," he says. "It was supposed to work in all of Europe, but they had only completed the program for one country, and even with that one we needed manual workarounds."

Timing matters. You look at a product and say, 'Good idea, but not now.' Rob Meilen, CIO, Hunter Douglas North America

Weeks spent the next five years working with the vendor as it gradually developed its product to the point that it offered the functionality originally promised. "Fortunately, the CEO had mandated that this be a fixed-bid contract," he recalls. "The contract said what the software was supposed to do, and we would have an annual conversation about how it wasn't quite there yet."

Manual workarounds were put in place initially, and a triage approach was established with the vendor, so that the problems that were the biggest productivity drains would be fixed first. The other costs were people and travel. The business unit was headquartered near London, and most of the IT team was based in the U.S., so travel to the U.K. was required several times a year.

The original decision to forgo the leasing software "was one of those cases where you say, 'Wow, I made the right decision!' Although I wound up inheriting the problem anyway," says Weeks, who today is senior vice president and CIO at SquareTwo Financial, a Denver-based asset recovery and management company with annual revenue of about $227 million.

Unfortunately, it's rare that a new technology is as clearly not ready for prime time as the leasing software that Weeks encountered. Most products and services look good -- on paper. And most come with clear case studies that show how they will help boost your company's ROI -- again, on paper.


1  2  3  4  5  6  7  Next Page 

Sign up for CIO Asia eNewsletters.