Professional Documents
Culture Documents
! A: IT and productivity
Does IT investment deliver a clear productivity
CORP2503 return ?
! B: Cloud computing
Technology & Innovation in Enterprise What is the business case for adoption ?
! Conclusions
Topic 8: Technology Management – 3
IT Investment issues
John Powell
CORP2503 Technology & Innovation in Enterprise • 2009-10! 1! CORP2503 Technology & Innovation in Enterprise • 2009-10! 2!
McKinsey (2008:4)
productivity improvement
– 53/59 industries did not improve productivity from increased
IT spend
– 6/59 showed modest productivity returns
(included: securities, semiconductors and computer
manufacturing, wholesale retail, telecoms)
CORP2503 Technology & Innovation in Enterprise • 2009-10! 3! CORP2503 Technology & Innovation in Enterprise • 2009-10! 4!
A: IT and Productivity • 3 A: IT and Productivity • 4
Pisello and Strassman (2003)
! Compare return on equity (ie shareholder measure of
profitability) to IT spend per employee
! Expect low IT spend to match low return on equity
and vice versa (ie upward sloping curve)
! Looked at 4000 US firms (2002) but found no
CORP2503 Technology & Innovation in Enterprise • 2009-10! 5! CORP2503 Technology & Innovation in Enterprise • 2009-10! 6!
+ SaaS
See
Leadbetter (2010:31)
on:
open vs closed
public vs private
social vs commercial
(based on Naone, 2009a)"
CORP2503 Technology & Innovation in Enterprise • 2009-10! 9! CORP3502 Contemporary Business Issues • 2009-10" 10"