The Internet economy challenges executives to rethink the notion of the traditional, vertically integrated firm in favor of a more flexible organization. The self-sufficient company is being replaced with interdependent organizations.

In the last couple of months, two of IBM's principal competitors in the mainframe business, Amdahl and Hitachi, both announced that they intend to withdraw from the market for large-scale mainframe computers.

In the last couple of months, two of IBM's principal competitors in the mainframe business, Amdahl and Hitachi, both announced that they intend to withdraw from the market for large-scale mainframe computers.

The Cutter Technology Council's Assertion #22 reads: "Privacy will become one of the major constraints on the speed with which e-business replaces traditional business interactions." The purpose of this Executive Update is to consider whether there is evidence of this trend in industry today.

The Cutter Technology Council's Assertion #22 reads: "Privacy will become one of the major constraints on the speed with which e-business replaces traditional business interactions." The purpose of this Executive Update is to consider whether there is evidence of this trend in industry today.

In a recent Cutter Business Technology Trends and Impacts Council Opinion (" Instant Messaging," Vol. 2, No. 1), I suggested that the wireless Web will be bigger than the wired Web and that this change will happen faster than the time frame in which the wired Web became prevalent. Recently, we conducted a survey to see how IT professionals view the wired world.

In a recent Cutter Business Technology Trends and Impacts Council Opinion (" Instant Messaging," Vol. 2, No. 1), I suggested that the wireless Web will be bigger than the wired Web and that this change will happen faster than the time frame in which the wired Web became prevalent. Recently, we conducted a survey to see how IT professionals view the wired world.

Editor's note: Assertion No.

Editor's note: Assertion No.

Editor's note: Assertion No. 7 from the Cutter Technology Council states, "The principal IT overhaul in the next 10 years will be organizational rather than technical, specifically a move to leadership practices facilitating organizational adaptability."

Editor's note: Assertion No. 7 from the Cutter Technology Council states, "The principal IT overhaul in the next 10 years will be organizational rather than technical, specifically a move to leadership practices facilitating organizational adaptability."

Given the freedom and resources to do so, people will act to take advantage of opportunities and satisfy their own needs. In the economy, the most obvious example of this is entrepreneurship. Entrepreneurs start new businesses, bring new products to market, and incite competition. Entrepreneurs see an economic opportunity and act on it.

Throughout its short history, IT has focused on itself and avoided looking at how to better align with the customer.

Sourcing relationships are growing ever more complicated. The goals are more grandiose, the numbers of players involved is increasing, and the risks are greater. With this trend has come an increased likelihood of relationship breakdown.

Sourcing relationships are growing ever more complicated. The goals are more grandiose, the numbers of players involved is increasing, and the risks are greater. With this trend has come an increased likelihood of relationship breakdown.

With the wealth of information showering IT executives and managers daily, the need for simplicity is greater than ever. An executive in an environment where outsourcing is prominent has to deal with service provider issues, plus worry about satisfying business customers, recruiting and retaining IT staff, and monitoring the project portfolio.

With the wealth of information showering IT executives and managers daily, the need for simplicity is greater than ever. An executive in an environment where outsourcing is prominent has to deal with service provider issues, plus worry about satisfying business customers, recruiting and retaining IT staff, and monitoring the project portfolio.

As described in Cutter Consortium's Business-IT Strategies Executive Report, " The New Risk Management" (Vol. III, No. 9), today's business environment contains more diverse kinds of risks and rewards than ever before, ones that few organizations have much, if any, experience in managing.

As described in Cutter Consortium's Business-IT Strategies Executive Report, " The New Risk Management" (Vol. III, No. 9), today's business environment contains more diverse kinds of risks and rewards than ever before, ones that few organizations have much, if any, experience in managing.

Cutter Consortium's online business-IT strategies survey asks respondents to identify the leading obstacles to getting more from information technology in their companies. Figure 1 summarizes the results, which are surprising in some areas. See how the results compare to your situation, and consider how these obstacles can be overcome.

Although hardly a panacea for solving IT problems, in today's world, outsourcing is a widely accepted, viable, strategic management tool. However, like most tools, it is only as effective as the operator. Outsourcing relationships need to be built and managed to fit the specific needs and culture of each user to help ensure a successful result. To achieve a custom fit with outsourcing, you must consider the following factors.

Although hardly a panacea for solving IT problems, in today's world, outsourcing is a widely accepted, viable, strategic management tool. However, like most tools, it is only as effective as the operator. Outsourcing relationships need to be built and managed to fit the specific needs and culture of each user to help ensure a successful result. To achieve a custom fit with outsourcing, you must consider the following factors.

For a number of years, IT organizations have been leaning toward using commercial off-the-shelf software (COTS) components in their systems, rather than opting to develop functionality from scratch.

For a number of years, IT organizations have been leaning toward using commercial off-the-shelf software (COTS) components in their systems, rather than opting to develop functionality from scratch.

Responses to a recent Cutter Consortium survey on e-business strategy raise interesting questions about the role IT organizations are playing in the move to e-business.