Speaking of Hollywood, Tata Consultancy Services, India's largest IT-services company, is setting up an entertainment-industry practice in Los Angeles and has tapped the former CIO of Metro-Goldwyn-Mayer, Edward Altman, to run it. As part of the strategy, Tata is working on a digital-asset management "lab" in the Hollywood area. As copyright issues proliferate on the Web, digital-assets and rights management is of growing concern to many companies. Tata will market that and other IT services, such as CRM and ERP, to Hollywood studios, TV networks, E-commerce sites, and cable and satellite providers, as well as to book, magazine, and newspaper publishers.
In a just-released study, Forrester Research found that IT spending doesn't necessarily correlate with high performance. The study, Linking IT Spend To Business Results, compared financial-performance metrics--revenue growth, cash-flow growth, and return on assets--of almost 300 companies with their spending on IT. On average, those companies identified as "poor" performers spent the least on IT, 2.6% of revenue. But "excellent" performers spent the second-lowest amount, with 3.3% of revenue going to IT. Those identified as "below average" spent 4.2% of revenue on IT, while "above average" companies spent the most, 4.5%.
Do those results extrapolate? Because I've been trying to tell my wife we don't have to spend the most to be the best-performing family, but she can't seem to make that add up. Send your formula, or an industry tip, to [email protected] or phone 516-562-5326. If you want to talk about privacy, digital assets, or IT spending, meet me at InformationWeek.com's Listening Post: informationweek.com/forum/johnsoat.
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