Viewing IT as holding only a tactical role may be limiting your returns from that department. Technology can help a distributor cut costs, generate revenue and increase stickiness with customers, but only by elevating IT to a strategic role, according to Torrey Jaeckle, vice president, Jaeckle Distributors, Madison, WI, in Bring IT Out of the Shadows.
Start by not referring to the person responsible for technology initiatives as your ‘IT guy,’ Jaeckle says, but instead appointing a chief information officer, or similar, who can drive technology strategy and has an equal voice alongside others in the C-suite.
“Any mid-size distributor or larger needs a CIO or equivalent to help guide and set IT strategy, plus a number of staffers under him or her to help roll-out, manage and maintain all the necessary systems you have in place,” Jaeckle says. “The days of distributors being able to get by with one person on staff who could simply make sure all the wires stay connected are gone. IT needs to be considered a strategic position in 2016, not a tactical one.”
While hiring a CIO might seem expensive, especially for a smaller distributor, this person can be part time – some firms actually "rent" technology chiefs – or can wear a "number of hats to help lessen the burden of the cost,” whether that's marketing, acquisition integration or warehouse management, says Bob Srdoch, owner, Laurel Consulting.
No matter the CIO's job status or number of hats, giving IT a voice inside the boardroom is critical to help drive technology improvements across the company.
“Technology has taken a backseat in distribution,” Srdoch says. “The biggest deficiency is not enlisting the technology team as a key business division, like sales and marketing. They need to be a part of the business. They need to be invited to the dance.”
Read more about emphasizing IT in Bring IT Out of the Shadows.