In his research role at MIT’s Center for Information Systems Research (CISR), Howard Rubin has invested years in researching why IT matters. According to his research, IT investment in a company is a better predictor of its success that other business economic indicators. Global technology spend is $4.2T which is more than the 1990 and 2000 spend combined.

Rubin suggests that the best time to invest in IT is during an economic downturn, and that those who don’t will spend twice as much later to catch up. This doesn’t mean that IT shouldn’t optimize or do things more efficiently – both must occur.

Here are some of Rubin’s parting thoughts:

Questions to Ask:

  • Is IT “sized to your business”?
  • Are your IT commodity costs competitive?
  • Are you moving at the speed of your competitors?
  • Are you leveraging the marketplace?
  • Can you compete at your scale?
  • Does your IT economic model offer the agility you need?
  • Are you getting an appropriate return on your technology investment?
  • Are you investing in the right new technologies at the right time?
  • Are you managing your technology economy or is it managing you?

To Do:

  • Optimize and Resize
  • Consider “The Commons”
  • Realign, reclaim, and reinvest
  • Enable agility
  • Leverage the supply chain
  • Fund IT forward and “follow the money”
  • Strategically engage the business and become an IT Savvy enterprise

Must investigate Rubin’s research in CISR in order to learn more.