By editorial@silicon.com, 1 October 2001 18:00
COMMENT It's always nice when two studies unveiled within days of each other fit so beautifully together. Take the research released today by the Bourton group showing IT spend is seen by senior management as an inhibiting factor in corporate growth. These high level directors are disappointed with the systems they thought would perform wonderfully in the return on investment stakes. Apparently they don't, and now they're not happy. And it's not just ROI that's been bugging them. IT ranks a dismal seventeenth in Bourton's top 25 list of factors that contribute to a company's competitive edge. The story was so different a couple of years ago. What's changed? Well, nothing - IT has always struggled to get its foot in the door of the boardroom. Now it's not living up to the hype of the slick salespeople, the directors feel they are justified in their criticism. But at the end of last week, KPMG revealed research that showed the board doesn't even know what's going on with its IT budgets. For any large company, that's very worrying. It's the same tedious story and it's been told before - the board still won't get its hands dirty with IT. There are some obvious ways forward. A starting point in dealing with the issue of under-performing systems is to make certain that all new IT projects are assessed with more caution to ensure major investments don't become major flops. It's hardly a radical approach - but maybe that's why boards will get it.
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