As sales is a big part of my life, I read a newsletter from Selling Power, and in a recent newsletter on software sales there is an article referring to Gartner reports which warn of a backlash against IT (information technology) by business executives, quote:
“The first report determined that 80 percent of what companies spend on IT doesn’t directly contribute to business growth or enhance competitive advantage, and is therefore ‘expendable.’ The second report pointed out that IT is seen as a waster of electrical power – a perception that would have been impossible in the heyday of the dot-com years.”
This sounds like another twist on Nick Carr’s “IT doesn’t matter”. But of course Gartner adds some suggestions how software sales people can try and counter-act this attitude.
I think that many large companies probably do spend far too much on IT, but I know from personal and repeated experience that small- and medium-size businesses (SMBs) look at IT investment in a far more serious way, in terms of overall value and the return expected. They can take a long time, but when they decide to invest in an ERP system, it is because they really see the need for it and can point to real problems due to not having an integrated system.
Maybe it’s time for the analysts to start looking at how SMBs invest in IT.