High-tech CEOs confront new reality

By Linda Rosencrance

May 5, 2003 12:00 PM ET

Computerworld - The high-tech industry is facing a new reality of stiff competition, economic uncertainty and global instability, all of which have CEOs zeroing in on the bottom line, according to a survey being released tomorrow.

The survey, conducted during the first quarter by the Technology, Media & Telecommunications Group of San Jose-based Deloitte & Touche LLP, was directed at CEOs of the 500 fastest-growing technology companies in North America. The survey found that although CEOs are optimistic about the future, they recognize that a fundamental shift in the marketplace has occurred.

But there's an opportunity to take advantage of shortsightedness in the market by paying more attention to undervalued assets, technologies, skills and individuals, and applying them to create truly valuable offerings, said Ryan McDonald, CEO at Impact Blue Inc. in Calgary, Alberta. The trick, he said, is to do it now while the competition is either struggling or waiting for change.

McDonald said his company's primary efforts to deal with this new reality include reducing senior management staff, narrowing research and development efforts, improving cash management and optimizing production.

Russ Hawkins, CEO of Paragon Networks in Brookfield, Conn., said one of the ways his company is handling the downturn is by looking to acquire new products rather than enduring the risk and time to build everything. He said that although some internal development is still being done, the focus is on acquiring proven products.

John Fish, CEO of Chicago-based Hubbard One, said his company doesn't view its bottom line as a target. "In any economic climate, we believe the focus must be on your customers," he said. "We operate carefully, and we focus on our clients. That simple strategy has worked wonders for us."

What Have You Done?

What steps have you taken to help your company weather the technology downturn over the last 12 months?

Contained general and administrative costs such as travel	53%
Invested in marketing and sales to boost the top line	48%
Downsized the workforce	47%
Pushed out capital investments	30%
Pursued strategic alternatives such as a merger	18%
Other*	13%

NOTE: Multiple responses allowed.
*Includes companies who say they have not been affected by the downturn.

Source: Deloitte & Touche’s North American Technology Fast 500 Sixth Annual CEO Survey

Recommend Digg Twitter ShareThis

Email Print Send Feedback Reprints

Additional Resources

Xerox

Win a color printer!

By using solid ink technology only from Xerox, you could save up to 65% by printing color for the cost of black and white. Enter for a chance to WIN a PhaserTM 8860 network color printer!

Microsoft

Upgrade to Internet Explorer 8 today.

Save time and mitigate security risk. Deploy it now.

Sybase

NEXT-GENERATION MOBILITY PLATFORMS

In this white paper, IDC analyzes the role of next-generation mobile enterprise platforms as organizations seek a more strategic deployment of mobile solutions.

Learn the important issues you must consider before starting your next mobility initiative. Get your mobility white paper from IDC now, compliments of Sybase.

White Papers & Webcasts

An In-Depth Look at ROI
In this economy, as IT budgets remain flat or get reduced, doing more with the infrastructure you have has never been more important....

Data Center Eco-Nomics
(Source: HP) Not only is it possible to gain a rapid ROI from your green computing efforts while at the same time laying...

The True ROI behind WAN Optimization
Looking for solid data behind the cost-savings story of WAN optimization? In this paper, NetForecast analysts interviewed customers who have deployed this solution,...

Legacy IT Modernization - Practical Reality
(Source: BluePhoenix) Corporate budgets continue to tighten. Organizations are looking at ways to reduce operating costs and eliminate unnecessary expenses while at the...

Extreme Savings: Cutting Costs with WAN Optimization
Did you know it's possible to cut IT costs without impacting day-to-day IT operations? In fact, when you download this whitepaper from Riverbed...

Interactive Guide: Getting Started with Data Governance
In this online interactive guide, Andrew White, Research VP with lead analyst firm Gartner, answers these questions to help get you on the...

A Strategic Blueprint to Increase Return on Assets
A leading global financial institution embarked on a data center consolidation and reclamation project that spanned nearly 2000 servers and 76 EMC arrays....

ROI Calculator Tool
(Source: Symantec) Calculate your savings and optimization potential with our ROI Tools: * Veritas Commantcentral Storage * Veritas Storage Foundation with Thin Provisioning...

Assessing the Real Cost of Storage
Read the IDC report to discover a comprehensive financial model for analyzing storage TCO, developed by Hitachi Data Systems. This report outlines how...

Usability Is Everything
Learn what sets Workday's HR and Payroll solutions apart from the competition....

All White Papers | All Webcasts