While recent reports and expectations for a turnaround give some optimism, shrinking corporate budgets and persistent negative reports of "the state of business" loom large. In this environment, many accept that little can be done to strengthen business processes and IT infrastructure. 

They are very likely wrong.

Companies should take this opportunity to fortify core processes and technologies. It is possible to make progress without significant financial commitment. While some companies worry about surviving from month to month, companies that wish to become leaders should concentrate on basic improvements that position them to thrive-not merely survive-when the economy improves. 

Gartner Group, in its study "2003 IT Spending and Staffing"(October 2003), reports that after two years of cutting IT budgets, enterprise businesses expect to raise spending by about 5 percent in 2004. In a separate study by Gartner, "Small and Midsize Businesses Stage Recovery in IT Spending" (September 2003), Lewis Clark, Rob Brown and Jim Browning report an even greater gain may be on the way for small and midsize businesses (SMBs). In 2003 SMBs increased IT spending by 7.5 percent, and are expected to make further gains in 2004. However both spending rates are far below 1999's high water mark of IT investments.

Independent repair facilities, multi-store operators (MSOs), dealership, and small and national insurance companies should examine the value (or lack of value) that each of their business processes and supporting IT assets delivers, and begin procuring IT assets that will be needed to gain the competitive edge when the market returns full bore.

MSO's might evaluate customer relationship management tools that enhance interaction with the customer. At the same time, independent repair facilities might reassess the quality of their automated accounting systems.

Whether big or small, insurance or repair-focused, every company might consider five steps to successfully gain a competitive edge in this down economy. They are:

1. Focus on improvement. Like a professional athlete practicing his or her skill to get better, IT assets can always be made to work better. Workflow and business processes should be analyzed and scrutinized on an ongoing basis. Although current processes might not be antiquated, a focus on 'continuous improvement' will enable you to make subtle adjustments in those processes that support the subtle changes your business undergoes.
   
   Admittedly, it might take a small army to continuously evaluate every business process; the key is to focus on those that mean the most to your business. To do this, put yourself in your customer's shoes and ask, "Am I easy to do business with?" Answering this question will help you to focus on your most important business processes-those that have a direct link to your customer. 
2.  Buy now; get ahead later. While budgets remain tight, now is the time to get ahead of the competition by leveraging technology appropriately. A recent survey conducted by Computerworld (Sept. 29, 2003), found that 52 percent of respondents said they are working on IT projects that will provide their companies with a major competitive advantage. This might not mean a revolution in IT, but it could mean a better way of interacting with customers, streamlining business processes or focusing on core business initiatives
3. Be picky. Scrutinize every potential purchase to understand how it relates to your business processes. If it's not right, find something that is. There are more IT choices available than ever before. Regardless of company size, mission or function, there hasn't been a better time to be an IT buyer. Whether you're looking to automate financials or track customer data or monitor the supply chain, IT is now a buyer's market. Take full advantage of this. 
4. Utilize slow periods to assess IT assets. As in point number 3, scrutinizing IT assets should continue with the same intensity after solutions have been implemented. This doesn't mean buying the newest offerings simply because they are new. In fact, it means just the opposite. Understand existing IT assets and the benefits they provide. Map their benefits back to business processes to derive an understanding of how well they fit together and meet your business' desired goals. This can be an effective cost saving practice, which allows you to identify and eliminate redundant or unnecessary services and more effectively utilize technology that is not optimally deployed. 
5. Actively stay involved. When you outsource IT services to reduce cost or add expertise, it still remains vital to maintain participation by those most involved with your crucial business processes and technology asset to ensure ownership and buy-in.

It is imperative that those who are actively involved in business processes and IT assets be involved in reviewing, changing, or eliminating them. Without incorporating feedback from those who work directly with these assets on a daily basis, intricate, yet important, details may be overlooked or taken for granted.

Jerry Rozmiarek is vice president of business appliations at CCC Information Services Inc.