Is business success dependent on I.T. expenditure ?

U.S. consultancy The Hackett Group believes so. Their study of 2,000 leading organisations has demonstrated a definite link between the amount of spent on I.T. and an organisation's overall performance.

According to their study, world-class businesses (the top 25% in terms of efficiency and effectiveness) spend 10% more on their I.T. than average performing businesses. The study also showed that world-class businesses have made significant savings by simplifying I.T. systems, aligning I.T. work closely to business requirements and outsourcing non-core systems and were likely to have 29% fewer applications than their competitors for the same number of users.

How they are achieving this ? "World-class I.T. executives are making major changes, building a smarter, more skilled workforce of managers and professionals that can deliver business value. They are finding ways to control and reduce spending," according to Scott Holland, a senior director of Hackett.

So there you have it, all you need to do to become a world-class business is to spend more on I.T. and in particular on training. What could be simpler ?


John Seaman
40% of I.T. projects are canceled every year. Only 28% are completed on time, on budget and to specification. Which category will your projects be in ?
Smartsoft Computing for better, faster, smarter Oracle system design & development and training
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David Willis

davidwillis-2006

Business success is NOT dependent on I.T. expenditure!

No business success is NOT dependent on IT expenditure. Business success is all about doing the right things at the right time - yes you need to spend money on IT but as Michael said above it's about "business value". All to often businesses don't take IT seriously enough - they miss the opportunity to improve the way they do things because: it doesn't occur to them, their concerned about risk, to worried about implementation so want to stick with the old ways of doing things. Doing business smarter is what it is all about - big is not best but it is usually the most expensive! STOP: Stop, Think, Observe and Plan (a Ray Mears saying). If more folks did this those project success figures would improve. David Willis Data exploitation for sales and marketing | Build the business case for investment | Increase growth, effectiveness & market share Please visit my profile at: www.ecademy.com/user/DavidWillis

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Red Setter

georgemontgomery-41400

Is business success dependent on I.T. expenditure ?

John As you say it's more a case of what they do with the IT (value-add) than how much it costs. Expensive is not always better ! Regards George Montgomery Good Business Solutions Ltd For useful Suggestions and Tips on Business Development see our FREE Newsletter Business Alert

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Mike Curtis

mikecurtis-95459

Is business success dependent on I.T. expenditure ?

Perhaps a better way of looking at it is "Is business success dependent on IT". Increasingly this is the case and companies that accept this are prepared to spend what it takes to get high-quality systems and usually benefit from that. Companies that do not wholeheartedly believe this will head for the lowest cost options, which are less than satisfactory, and then having been "proved right" they cut back on IT expenditure even more. MullSoft Ltd. Catalog software to organize everything on your computer http://www.mullsoft.co.uk/jean

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Mike Fleming

michaelfleming-50041

Is business success dependent on I.T. expenditure ?

John The key words in your article are 'business value'. Unless you know what true business value a solution would bring, you might as well not have the solution. An extra 1% of gross margin can be worked back through the organisation to establish what solutions will help to achieve that business value, for example. Some projects fail to deliver because all they do is automate a bad business process. ROI is a passe term now, business value is the correct way to identify viable projects, as you have to look beyond the technology to answer that question, in the first instance. MIKE Michael Fleming Channel Consulting Services The I.T. Business Partner Network Club

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Simon Morice

simon_morice

Is business success dependent on I.T. expenditure ?

This is very much like the justification for doing ISO9001:2000. Appropriate IT spends are one of the many signatures of committment to providing adequate resources. In the same way, you tend to find a higher number of world class businesses with certification to ISO standards than you do amongst the rest. The spend, like the ISO badge is a consequence rather than a cause. The Dot Coms showed that there was more to high technology than just spending... Simon Morice +447879403479 Breton farmhouse let for holidays and short breaks

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