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.