A Harvard Business Review article The Truths About IT Costs lists seven ‘truths’ about IT costs. These are:
- Enhancements often don’t deliver results commensurate with their costs.
- Projects are often too big and take too long, partly because unnecessary functionality is built into applications.
- Previously purchased applications and infrastructure technology are often underutilized.
- Project failure rates are too high.
- Tech teams do not have sufficient incentive to achieve high quality, and quality is often not measured.
- Managers don’t know enough about the systems that support their areas.
- IT is too risk averse: “No one ever got fired for buying IBM or Microsoft.”
The article reads like some consultants’ reports – addressing problems at a high-level, with a few key recommendations; but when you think about it for a while you wonder how to practically implement the recommendations.
Update: see also Michael Krigsman’s critical blog