Information Technology is a necessary consideration for businesses in the modern era, but with over 100,000 IT firms in the United States, organizations have many options to choose from. With so many different business types, with different budgets and goals, it’s impossible to lay out any single spending strategy that can work for every company. However, there’s a high-level mentality that can lead you to better IT decisions, no matter what the nature of your business is.
There exists a spectrum, between seeing IT as an investment and seeing it as an expense, and the closer you are to the “investment” end, the better decisions you’re going to make. When you see IT as an expense, you’re going to budget things differently, only paying for things once they become absolutely necessary. There are some advantages to this; for example, you’ll save money, which for early-stage startups is essential for operating lean.
On the other hand, seeing IT as an investment forces you to make decisions that have the highest likelihood of paying off in the long-term, leading to a higher return on investment (ROI) over a period of years.
Why investment is better than expense
Overall, making a decision to invest, rather than merely paying an expense, will pay off in the following ways:
Thinking about IT as an investment is a high-level concept, so what are some practical ways you can incorporate it into your decision making?
With these tips, you can start thinking about IT as an investment, rather than an expense, and put your IT budget to better use for the long term.The InformationWeek community brings together IT practitioners and industry experts with IT advice, education, and opinions. We strive to highlight technology executives and subject matter experts and use their knowledge and experiences to help our audience of IT ... View Full Bio