By focusing technology on improving internal business operations, agencies can streamline operations and save billions of dollars, an Oracle exec says
Federal information technology managers should not be blinded by the glitz
and glamour of building electronic commerce applications for their World
Wide Web sites, an industry leader warned Tuesday.
Rather, by focusing technology on the more mundane activity of improving
internal business operations, agencies can streamline operations and save
billions of dollars, according to Timothy Hoechst, vice president of technology
at Oracle Services Industries.
"We're looking at how we can "Amazon.com' everything," Hoechst said.
"That's important, but more important are the core business practices within
Hoechst, speaking at the Federation of Government Information Processing
Councils' Management of Change conference in Atlanta, advised the audience
to think about how the Web can meet the needs of agency employees.
He cited his own company as an example. He said Oracle identified several
IT applications that could be changed within the company, including consolidating
human resources systems, data centers and e-mail servers. The company estimated
that these strategies would save Oracle $1 billion in 18 months. But it
wound up taking only nine months to save $1 billion, he said.
"I encourage you to exploit Internet commerce," Hoechst said. "But if
you do that at the expense of internal processes — such as merging two e-mail
servers into one — then you are missing an giant opportunity to harness
the power of your information systems."
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