Research Firm Customers Favor Funding Disclosure.(INTERNET & TECHNOLOGY)

Byline: J. BONASIA

In seven years as chief information officer for defense contractor Northrop Grumman Corp., Tom Shelman figures he's pretty much seen it all.

From the Y2K computer crisis to the Internet boom, from the B2B craze to the dot-com bust, Shelman has been there. Now he's busy sorting through the hype surrounding the latest tech breakthroughs -- mobile and Wi-Fi devices, Web services, computer grids and utility computing.

Shelman relies on tech research firms to update him about the constant changes in information technology. In his case, the stakes are high. Northrop Grumman, with expected sales of $25 billion this year, spends 3.5% of its income on IT.

In short, Shelman's job is to make sure Northrop Grumman adopts state-of-the-art computer systems with adequate security protections. In this role, he depends on analyst research for two purposes -- to develop his firm's tech strategy and sell that strategy to his bosses.

"Analyst research helps whenever you go to build a business case with the CEO, CFO or other leaders," he said. "It gives me the credentials to make a decision, especially if two or three of these analyst firms are aligning or agreeing on a subject."

Shelman says he uses the research as a sort of crystal ball. He studies analyst forecasts about the future strategies of leading tech vendors. In this way, he can shape Northrop Grumman's IT investment plans for the next 18 to 24 months and beyond.