IT investment as a Portfolio
Executive Summary: As per a recent Computerworld survey , the Information Technology (IT) spending is expected to go up in 2015. The major areas of spending are expected to be in Security, Mobile, Business Analytics and Cloud. As organizations across industries dabble with the IT budget for next year, there are few factors they should consider before deciding the final budgetary amounts. This post is an attempt to discuss those factors that drive the IT decisions. Need for IT investments: Firms invest in IT primarily for two reasons - 1) to achieve Strategic depth 2) to Improve productivity. The priority for these two during the budgetary decisions varies depending on the business cycle and other macro economic factors. When an organization has high growth plans and the broader economy is doing well, the firm is more likely to favor IT investments that increase strategic depth against its competitors. When the organization is operating in an mature market or is facing head winds i...