In fact, in a document entitled "IDC Predictions 2004: New IT Growth Wave, New Game Plan," December 2003, by Frank Gens recently reported that government compliance will be the number one IT investment focus for 2004.

Added to this data are findings from the December 2003 report from AMR Research, "Sarbanes Oxley Compliance Will Exceed $5B in 2004," by John Hagerty and Heather Keltz that supported claims that billions will be spent on compliance-related activities and IT purchases in 2004. Keep in mind, however, that AMR's research encompasses all spending related to compliance, not just IT spending. Still, technology expenditures related to compliance are expected to exceed $1B in total this year alone.

As government regulations drive IT spending, companies need to ensure that their staff are getting the most from their investments as compliance is critical to the overall health of the organization.

The compliant infrastructure
One of the most compelling outcomes for IT with regard to compliance is the fact that these regulations are driving organizations to assess their current infrastructures while presenting an opportunity to adjust their newly-examined business capabilities as necessary.

This includes implementing a variety of products and services that can be leveraged to help support companies in the execution of their business initiatives as well as helping them to adapt to the ever-increasing regulatory risk and compliance environment.

Thus, businesses have an opportunity to go beyond mere compliance with these new obligations. They should use this opportunity to improve their operations by making them more efficient and predictable. Integrating the vital aspects of your corporate IT infrastructure with business processes to support compliance presents an opportunity to re-evaluate your current business methodologies and revise as required moving forward.

Certainly, the task can at first appear daunting. The Web, email and instant messaging have caused a tremendous increase in the sheer volume of information an organization produces. In fact, up to 80 percent of business information is now stored in electronic formats. Of note, a recent University of California at Berkeley study reports the amount of new information generated has doubled in the last three years alone -- most of it in the form of email and office documents.

Creating the strategic fortress
And it's only going to get more challenging, as the drive to e-business on-demand drives an even more meteoric rise in the amount of information a company generates -- and is responsible for managing within defined business processes. But consider the upside. An infrastructure that supports the myriad IT requirements to help support risk and compliance can streamline complex regulation processes. What's more, such an infrastructure can spur productivity, enhance customer service and boost return on technology investment.

With regulatory deadlines looming, an organization should do its best to avoid an ad hoc tactical approach to compliance that is narrowly focused on dealing with individual regulations as they come along, and seizing the strategic opportunity to improve overall business operations. What does it take? Table A gives a good overview.