Predicts 2005: IT Asset Management Adds Value, Lessens Risk IT asset management is receiving more attention as businesses continue to face cost controls and increased asset regulatory requirements. Implement sound programs that combine people, processes and tools. Predicts 2005: The Impact of Web Services Still Grows As software infrastructures increasingly exploit Web services, all of the components that make up an IT strategy, from application selection to maintenance and management, must respond effectively. Predicts 2005: Support Improves for Knowledge Workers Knowledge workers are introducing new technologies faster than enterprises can support them. Bridging the gap between new and maturing technologies poses the biggest challenge for companies. Predicts 2005: IT Services and Outsourcing Cut People, Costs IT services and outsourcing organizations continue to reduce costs through automation and labor substitution. Personnel expenses account for the majority of IT costs. Predicts 2005: SCM Strategies for Business Applications After three years of flat, tactical spending, real-time, demand-driven supply chain management will become the foundation of users' SCM strategies. This will complement the legacy "plan, then execute" mindset. Predicts 2005: Communications Services Are Changing Communications services will undergo changes in 2005. Prices will stabilize, carriers will consolidate and re-integrate, old networks will be replaced, and voice will see renewed interest. Predicts 2005: Corporate Performance Management Today, most corporate performance management initiatives are driven by pressure to comply with regulations. That will have to change in the next few years, if CPM is to raise business performance. Predicts 2005: A Focus on Intent Enlivens CRM Due to demand for precision, design and measurement of customer relationship management efforts, organizations will center strategies on business benefits and customer intent. Real-time decision support will be critical. Predicts 2005: IT Management Reinvents Itself In 2005, the fate of the IT organization and the CIO will depend on their ability to expand their awareness of their external environment and adapt to new, permanent demands for business-based capability and performance.