Article at a glance:

Divide and conquer: Rethinking IT strategy

• Although companies manage established businesses and new ventures differently, they typically manage information technology just one way: with a broad stroke, to cut costs in rough times and to fund projects in good ones.
• Companies should manage most IT for productivity and cost savings, but technologies that support businesses should be adopted and measured with the same decision-making process used for investments in general.
• Certain IT investments help businesses to achieve a competitive advantage and to develop new, industry-changing operations. A more venture capital-like approach is suitable for managing these investments.
• A company that differentiates among the types of IT that support different parts of its business can invest in future success while continually paring the costs of routine technologies.

This article also contains a sidebar, "Managing innovation: An interview with BP's CIO, John Leggate."