The Next Leap in Productivity: What Top Managers Really Need to Know about Information Technology

3.5. When IT Is a Business Channel

Brian Margolies, vice president of IT planning at Scholastic Inc., remembers when IT executives were seen as caretakers of machines. "Now we're seen as innovators that companies need to survive and grow," says Margolies. "The business looks to IT for increased efficiencies that help the bottom line and innovations that grow the top line."

As one of the company's "technology strategists," Margolies needs to understand where the business will be two to three years from now. "That gives me a target to build to. I'm trying to drive change that's probably 18 to 36 months down the road."

Until very recently, publishers all followed the same business model. Acquire manuscripts and deliver them to customers in the form of printed books.

Now publishers are gearing up for momentous change. In addition to delivering content on the printed page, they will probably begin to offer a significant portion of their libraries in a variety of digital formats.

In the past, brick-and-mortar bookstores had been the company's primary sales channel. But as everyone who has ever bought a book from Amazon.com already knows, the bookstore has moved from the mall to the Web.

A shift in business strategy means that IT has to shift, too. And it also means that IT will jump from playing a supporting role in the company's revenue model to playing a starring role.

It is entirely likely that within a couple of years, IT will become a primary channel for publishing and distributing ...