Investing in IT

History shows that successful companies come out of recessions more productive than when they went in - productivity compared to the rest of their industry. Research suggests that no more that 3% of information available today is digitised, so investing in business systems to release corporate knowledge can give you real competitive advantage. Importantly, it is expected that the amount of information available digitally will double every 18months.

Companies that measure IT spend as a % of revenue are on the right track. But more than just spending on IT, it means focusing IT spend on growth projects rather than running IT. Growth projects can be though of as ways to use information to your competitive advantage - eg removing admin tasks from front line employees, driving targeted marketing campaigns using customer information, automation of management information.

Many commentators are starting to talk of 'post downturn' strategies and a companies IT infrastructure should be the most important. Companies need to be highly automated and quick take opportunities as they arise. In the same way, a companies IT systems must be nimble, cost effective and high quality.