Investment in IT

IT is reducing the amount of risk and uncertainty by aligning the real-time understanding of processes and organizational demands.Thus, IT  raises output per hour in the total economy principally by reducing hours worked on activities. Overall GDP increases....

But not all technologies, however, increase productivity by reducing the inputs necessary to produce existing products. Some new technologies bring about new goods and services with above average value added
per work hour. However, the newer technologies obviously can increase outputs or reduce inputs and, hence, increase productivity, if they are part of the capital investment plan.

The current factors of our economic landscape: 

• Revenue pressure on most sectors
• Current high fixed cost of IT in most companies is preventing economic agility to business revenue volatility
• Reduction of revenue in most sectors and the lack of IT economic agility, IT costs appear high relative to revenue which lends to targeted reductions --- leading a reduction in the IT budget
• Very few companies understand that currently is the best time to invest in IT (due to low borrowing costs) to lower overall operating expenses through increased automation and virtualization to increase margins
• IT still accounts for less than 10% of a company's operating expense which lends to the argument that there is 90% of expense that can be lowered

These factors combined have the potential to drive a new operational and economic model for IT that is agile enabling new levels of business value --- very few companies realize the power within their own organization.

SteelGlass through its 70 years of experience can help companies unlock the power within their organization by aligning people, process and technology through a programmatic approach...