- Research Highlight
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New research finds that investments companies make in information technology increase profitability and sales more than investments in advertising or R&D do.
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Although IT portfolio management has been a best practice for some time now, many companies are still getting returns from IT investments that are below their potential. New studies show that a measurable premium can be gained by implementing a set of interlocking business practices and processes, collectively called “IT savvy.”
Most organizations struggle to demonstrate business gains from investments in information technology. New research reveals how to meet the challenges of IT portfolio management to deliver tangible results.
For managers seeking to abandon follow-the-pack IT investment, the author offers the example of Inditex Group, a clothing manufacturer in northwestern Spain, best known for its Zara stores. Inditex demonstrates that a company can select, adopt and leverage IT while spending very little on it. He lays out five general principles that underlie Inditex”s remarkable success with targeted technology spending.
When senior managers at United Parcel Service (UPS) first decided more than 15 years ago that package tracking had become a competitive necessity in the package-delivery industry, they discovered that developing the capability was not as simple as writing or buying a package-tracking application.
Assessing the value of information technology (IT) has never been easy. Delayed benefits, unintended uses, business changes, and hidden support costs inhibit meaningful evaluation of individual IT investments. This was true when most investments were focused on the support of a single business process or functional area.
Long-term sustained management of a strategic alliance is turning out to be the dominant challenge of effective IT outsourcing. From a relatively unusual entrepreneurial activity, IT outsourcing has recently exploded across the global corporate landscape.1
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