A recent study by Gartner Research finds that only 20% of IT money is helping businesses grow or gain a competitive advantage. They call the other 80% “dead money” since all it does is keep things running; in other words, it’s an expense.
Personally, I think their methodology is wrong, since there’s no attempt to measure the value of the systems in place, which may *already* be leveraging IT for success. It is possible that these systems already bring value to a business in terms of efficiency and service marketing.
The study, however, brings up some great points:
• IT managers must understand businesses.
• IT should take the lead, providing a strategy for a business.
• IT must demonstrate the value it brings to an organization.
The takeaway:
Everything IT Departments/IT Managers do must add value to a business, first in terms of a dependable infrastructure, then in terms of simplifying business (efficiency), and finally, in terms of providing a competitive advantage. (For creative businesses, this usually means better creative, faster.) Otherwise, you have something worse than “dead money”; you have dead weight, *dragging the business down*.