If you're a CEO or business owner, it is easy to become enamored with IT and its promise of instant innovation makeover that goes with going with the techie label.  Yet, just as easily, such enthusiasm could slide into doubt once faced with the realization that leveraging IT isn't as simple as purchasing or procuring one.  Transforming technology assets into operational efficiencies that boost margins is both an ideal and a challenge especially for the CIOs.  The good thing is that good advice is available in the form of a book called IT Savvy:  What Top executives Must Know from Pain to Gain (Weill and Ross).

“In the current economic environment, companies can’t afford not to become IT savvy,” says Peter Weill. “Firms with above average IT spending and IT savvy have 20% higher margins, those with an above average percentage of shared applications and IT savvy have 30% higher ROAs, and firms with above average IT infrastructure spending and IT savvy have revenue growth three percentage points higher than their industry average.”

So how does one become IT Savvy?  The authors boil it down to 3 steps; First is to fix what is broken by actively managing the IT portfolio and assigning clear decision rights and accountability, Second step is creating a digitized platform for business execution and innovation, and exploiting the platform for profitable growth is the last one. Furthermore, at the end, there is an assessment sheet that will help you keep tab on how IT savvy your business is.  Definitely a practical tool for benchmarking and consequently, improving business performance given a  clear set of practices and competencies.

Intrigued? You can read a review from Mark McDonald (Gartner) and a preview article from MIT Sloan School of Management, too.