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By Grocery Manufacturers Association

The 2008 GMA Information Technology Investment and Effectiveness Study was conducted by IBM in conjunction with AMR Research on behalf of GMA. It provides a clear picture of the state of IT within the CP industry; analyzes IT spending and investment patterns; and compares the perspectives of business and IT executives on the effectiveness of the IT function. This year's study is the ninth such analysis to be completed.

The findings are based on two separate surveys, which were conducted between January and March 2008. The IT Spending and Investment Survey targeted senior IT executives in GMA-member companies and focused on capturing information about IT spending and strategy. The IT Effectiveness Survey targeted senior business executives in GMA-member companies and focused on evaluating the effectiveness of IT within their organizations.

In all, 118 respondents from 46 companies with revenues ranging from US$46.9M to US$36.9B participated in the study. The overall response rate was higher than ever before, illustrating the extent to which IT is now regarded as a core business function.

In 2008 we have also added, where relevant, comparisons between the responses of high performing and low performing companies. For our purposes, high performers reported compound annual revenue growth for 2006/2007 in excess of seven percent, while low performers reported compound annual growth of less than seven percent.

The global consumer marketplace is rapidly evolving. Five mega-trends, in particular, are reshaping the context in which the CP industry operates:

• Consumer value drivers fragment
• Gatekeepers become more guarded
• Information exposes all
• Mega-retailers break the boundaries
• Partnering becomes pervasive