CIOs: Help your business erode its margin
Some CFOs might haughtily suggest that CIOs are already major contributors in this respect. However my focus is on the following:
- The emerging markets are lands of great opportunity, if you get the infrastructure right.
- The developed market is a land of opportunity if you drive down the cost enough to keep economically battered consumers interested (ie get the infrastructure right).
Both these facts are causing organisations to re-evaluate who they target and how they absorb the margin hit. Micro-finance is one example. The sub $1,000 car(new) is another.
In both markets, but emerging more so, the game is to trade margin for volume. This will require leaner supply chain management from the quarry to the show room. This is an opportunity for the IT function to shine. Don’t wait to be asked. Start the conversation about your organisation’s future now.