In this podcast, Michael Hugos provides insight from his CIO experience and his latest book, Business Agility – Sustainable Prosperity in a Relentlessly Competitive World.

Michael Hugos, the former CIO for Network Services Company, took a different track when he wrote his latest IT book. Business Agility – Sustainable Prosperity in a Relentlessly Competitive World provides business executives with tools and tips on how they can help IT professionals drive business revenue. He says that IT professionals tend to forget that the business is where the money is. That's why IT exists." He adds that technologies, such as cloud computing, open source and virtualization, will provide great cost benefits to the business. "We need to be in better position to guide these decisions."

Hugos has first-hand experience working with business executives to drive revenue at Network Services Company, an $8 billion cooperative of 86 distributors that market industrial products to major companies. Before this company became agile, the profit margin on coffee cups was practically nothing and getting smaller. Multiply this by Network Services' distributors who sell to 5,000 stores across the country. He says, "We banded together under this cooperative and worked closely with sales. Interesting things started to happen and ideas for making more money started to flow." The information-based, value-added services Hugos helped to devise returned a two percent to three percent profit margin. "If you do things right, you can earn more money or what he calls the agility dividend"

Hugos thinking is nothing new. He refers to the invisible hand theory which Adam Smith, the great British economist, came up with 250 years ago. He says, "The invisible hand pushes the price of all products to their cost of production. No amount of fast talking sales people and ball game tickets will change this."

The end result for Network Services was complete transparency for more products. Hugos says, "Out of the 50 items we came up with, we carried out 25 for them. For example, we could fill an order directly off a purchasing system or via EDI or XML. We now had a customized solution that made our paper cups more valuable."

In this podcast, Hugos provides some current IT enablers that will help an organization achieve speed and agility, give some examples of companies that have achieved both business and IT speed and agility, and offers takeaways to help CIOs assess the business impact of IT based on speed and agility.

Bio
Michael Hugos, at Center for Systems Innovation [c4si], mentors companies and teams in practices of IT and business agility. Up until 2006, he was the corporate CIO at Network Services Company, an $8.2 billion cooperative distributor of janitorial product and disposable food service items. His books include the Essentials of Supply Chain Management (2nd Edition), Building the Real-Time Enterprise, and he contributed to CIO Best Practices -- Enabling Strategic Value with Information Technology. His most recent book is Business Agility – Sustainable Prosperity in a Relentlessly Competitive World.

Resources
Michael Hugos' Blog, CIO Magazine, "Doing Business in Real Time"

http://advice.cio.com/taxonomy/term/30

Michael Hugos' Website

http://www.michaelhugos.com/Center_for_Systems_Innovation.html

Production Credits
Elizabeth Ferrarini, Executive Producer
Tom Parish, Host and Audio Producer
Audio Editing by Doug Marcis