Juniper Networks Research Finds Link Between Financial Performance and Information Technology
SUNNYVALE, Calif., July 19, 2005 - New research commissioned by Juniper Networks reveals a strong link between a company's financial performance and its use of information technology (IT). The research surveyed 560 companies in North America, Europe and Asia with revenues greater than $100 million. A key finding was that companies with superior financial performance were also those that placed most importance on technology and were most likely to adopt new technologies. This was true for companies of all sizes and in all geographies and industry sectors. Juniper has named this type of company a 'dynamic leader.'
Dynamic leaders represented roughly 25% of the companies surveyed and their responses followed a very consistent pattern: they viewed IT as a business enabler and a strategic asset in helping them outperform other companies. They had, on average, 30% higher revenue growth than other companies.
"Our properties provide the highest quality guest experience, through their luxurious rooms, stimulating gaming, thrilling entertainment, gourmet dining, and the like," said Laura Fucci, VP and CTO at MGM MIRAGE (NYSE: MGM), a dynamic leader. "To ensure our customers receive the absolute best guest experience, our network must always be on, providing services on demand 24 hours a day, 7 days a week. Having an unbreakable, resilient network infrastructure means ensuring the highest level of guest satisfaction."
This research is proof that there is a ROI on IT spending. "Does IT make a company more financially successful or do successful companies invest more in IT? This is a question that the industry has been grappling with for years," said Kim Perdikou, associate general manager, Infrastructure Business Team, at Juniper Networks. "What this research shows us is that successful, growing companies certainly regard IT as strategic to their business, and invest accordingly. In other words, it's a virtuous circle: strategic investment in IT helps to improve productivity and enable growth. That growth then fuels further technology investment, and so it goes on."
Based on the survey findings, Juniper Networks has developed a detailed profile of a dynamic leader:
- Technology is at the heart of their businesses: they perceive their organizations to be highly dependent on real-time transactions and automated processes. For this reason, their IT performance requirements are extremely high: they are 30% more likely to be intolerant of technology outages that last longer than 30 minutes.
- Dynamic leaders are focused on productivity and operational efficiency and use technology strategically to help them achieve this. They are 30% more likely to have mobile workers. When purchasing IT, they are driven by productivity gains more than cost savings.
- Dynamic leaders have more IT projects on the go than the other companies surveyed, and adopt newer technologies far more quickly. In the networking arena, they are 40% more likely to have wireless local area networks and 50% more likely to rely on IP virtual private networks (VPNs) for their wide area network. They are 40% more likely to adopt MPLS technology at the core of their network, along with quality of service (QoS) traffic management, suggesting that they are pursuing the strategy of a single IP network for voice and data traffic.
- Dynamic leaders take a strategic yet dynamic approach to planning and IT purchasing. For example, they are 30% more likely to implement a comprehensive security strategy rather than piecing together a security approach over time. Yet, dynamic leaders have 50% more business change than other companies, including expansion and mergers and acquisitions, so any plan must allow for flexibility.
- Dynamic leaders are ahead of the curve when it comes to using technology to meet compliance requirements: 35% more dynamic leaders are investing in document management systems, and 36% more in Fibre Channel storage area networks.
The research, conducted by TNS, surveyed IT decision makers' use of and attitudes towards enterprise technology and segmented them accordingly. The segments were then mapped onto corporate and financial data.
TNS is a market information group. It is the world's largest custom research company and a leading provider of social and political polling. It is also a major supplier of consumer panel, TV audience measurement and media intelligence services. TNS operates a global network spanning 70 countries and employs over 13,000 people. It provides market information and measurement, together with insights and analysis, to local and multinational organizations. TNS combines its specialist sector knowledge with expertise in the areas of new product development, motivational research, brand and advertising research and stakeholder management to bring its clients up-to-the minute, internationally consistent information. TNS thinks differently to help its clients build competitive advantage, making TNS the sixth sense of business.
Visit the company's website at www.tns-global.com
About Juniper Networks, Inc.
Juniper Networks is the leader in enabling secure and assured communications over a single IP network. The company's purpose-built, high performance IP platforms enable customers to support many different services and applications at scale. Service providers, enterprises, governments and research and education institutions worldwide rely on Juniper Networks to deliver products for building networks that are tailored to the specific needs of their users, services and applications. Juniper Networks' portfolio of proven networking and security solutions supports the complex scale, security and performance requirements of the world's most demanding networks. Additional information can be found at www.juniper.net.
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