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Why do UPS, Wal-Mart, and Starwood, in spite of working in the same environment as their direct competitors, consistently exhibit superior revenue growth and net margins relative to their industry groups between 2002 and 2006? Companies that converge business and technology reap greater financial benefit than those with a less mature level of convergence, says a study by The BTM Institute, a nonprofit research think tank.

“The convergence of the business and technology aspects of an organization into an integrated, ‘whole-brained’ enterprise provides the connections necessary for innovation, resilience and agility,” says Faisal Hoque, Founder and Chair, BTM Institute and Chairman and CEO of BTM Corporation. “Leaders will find that this organizational maturity supports innovative thinking through carefully designed processes, rewarding measured risk-taking, and provides information architectures that serve as a knowledge base for building and testing opportunity scenarios. Convergence provides the enterprise with the platform to thrive during marketplace changes rather than just react to survive.”

The sutdy showed that enterprises with a more nearly converged business technology management exhibited superior revenue growth and net margins relative to their industry groups between 2002 and 2006:

• 12% average annual revenue growth vs. 4% for their industry groups
• 36% average annual earnings per share growth vs. 7% for their industry groups

Not only did these enterprises grow at a faster pace than did their peers, but they also exhibited consistently greater returns than those of their competitors, such as:

• 6% higher EBITD margins than those delivered by their industry groups
• 4% average higher return on equity
• 8% average higher return on assets
• 14% higher return on investments

Technology is a major expense in modern corporations and is deeply embedded in nearly every aspect of doing business. Moreover, it is the critical enabler of strategic imperatives – to be agile, resilient and innovative. The research further highlights that:

• Disruptive innovation creates new markets
• Evolutionary or sustained innovation creates great enterprises
• Adaptability allows rapid response to unforeseen changes
• Globalization enables extended enterprises, reinforcing their competitive edge
• The convergence of business and technology builds agile, innovative, extended enterprises
• Convergence relies upon repeatable, cross-disciplinary management capabilities

As the study proves, success is the reward for those that achieve the higher levels of management maturity.