Some See I.T. As The Problem - InformationWeek

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Some See I.T. As The Problem

Technology should promote growth, not impede it, right? But six in 10 senior executives gripe that IT, at times, inhibits growth, and that attitude could limit IT spending, according to a study released last week by management consultants Bain & Co.

Of the respondents who view IT as a growth inhibitor, more than half believe that the lack of information or transaction capabilities creates bottlenecks to growth. "Hopefully, the survey is a wake-up call for CIOs when 60% of business executives think IT choices have been obstacles to achieving growth," says Bain global IT practice head David Shpilberg.

IT spending averages 7.4% of revenue in companies where IT is seen as a significant enabler of their growth strategies, versus only 4.7% of revenue in companies that deem technology as an inhibitor, the survey says.

With executives who see IT as a growth enabler, 42% of IT spending goes to new systems and capabilities versus maintaining existing platforms. But spending on new systems and capabilities drops to 30% in companies where managers judge IT as an inhibitor.

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