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Business leaders 'continuing to invest in IT'
IT News |
Despite the ongoing economic downturn, business leaders remain committed to their IT investment plans, a new study has revealed.
Research conducted by Gartner found that half of the 175 executives surveyed are investing in IT as a means of changing the rules of competition, and half are seeking to drive sales among other priorities.
Some 86 per cent of respondents said they believe IT's strategic contribution to their business will increase by 2014.
"Board directors clearly have a top priority to invest in IT and leverage it for competitive advantage," said Jorge Lopez, vice-president and distinguished analyst at Gartner.
"These forward-looking and proactive attitudes are being made although more than half of the survey respondents replied that they are preparing for a market recession."
This underlines the fact that the investments they plan to make are essential to growth and even survival, he stated.
Mr Lopez said business directors are willing to "throw the investment gauntlet down" now, rather than later.
Mark Raskino, vice-president and Gartner fellow, commented that the best strategy for the chief information officer (CIO) is to select projects that drive the strategic priorities of the firm.
"Although this seems obvious, in practice, it is challenging to drive consensus on what that exactly means," he stated.
"CIOs need to review project elements with the chief executive and key board sponsors, so they can understand that the project is designed to enhance their priorities in a meaningful way."
Mr Lopez suggested that CIOs should continue to examine how to liberate budget allocations through improved efficiencies, so that the innovation and core competency investments prioritised by the board of directors are maintained.
"They should also investigate how IT can change the business model for their industry in a manner that will change the rules of competition," he added.
Posted by John Lynes
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