Businesses struggle with technology

Jan 31 2008 By Sue Scott

ONLY 18% of North-east businesses make it a priority to keep up with technological change.

That was the damning conclusion of a Chartered Management Institute (CMI) survey today, despite evidence that the proportion of failed IT projects at 74% is as high now as it was in 1980.

Worse still, just 9% believe effective use of IT and communications is one of the biggest challenges for the UK.

Jonathan Wheatley, managing director of Stokesly-based IT specialist MC Ware said the consequences for businesses who fail to back up vital data stored on computer systems and keep abreast of technological change could be disastrous.

A spot survey of 100 businesses at a recent North East Chamber of Commerce lunch on the way they maintain their IT systems, found that although businesses went through the motions of backing up data every day, only 58% checked to see if there was anything on the back-up disks.

Mr Wheatley also found 41% did not have a continuity plan in case of disaster.

"I think it’s only when it goes wrong that they appreciate the importance of IT systems to their business, and that is a big wake-up call," he said.

"I liken the effect of business computers failing to a writer whose pen runs out. Businesses need education and advice to get the correct procedures in place before anything goes wrong."

The CMI survey also claimed organisations in the North-east have misplaced confidence about their ability to cope with uncertainty and change. It said there was "a worrying level of over-confidence".

But Andrew Sugden, director of membership and policy for the North East Chamber of Commerce (NECC) said: "All the indications from our surveys of North East firms show a confident and vibrant business community and this upbeat assessment is reflected in official statistics.

"That said, every business owner and manager should be looking at ways to improve and the CMI survey highlights a couple of important areas."

Just 39% suggest that ‘developing talent’ was a significant issue, despite two-thirds (67%) admitting that skills and talent management is the key challenge currently facing UK employers.

But the North-east was the second highest region in the UK, behind the East Midlands at 43%, for believing the development of talent was important to their business.

Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute, says: "Questions need to be asked about how UK organisations will be able to manage in the future, if they fail to address key operational issues.

"Rather than simply focusing on what should be done today the inability to plan properly might lead to questions of a more critical nature, such as what opportunities have I missed? or worse, how did the organisation not see that coming?"