Haves and Have Nots

Last week I had a chance to spend time with a group of CIOs hosted by a well known information technology company. During the course of the 2.5 day session, the host company took some time to tell us about their IT operations and strategy.

The differences between what they are doing and what I see others doing was dramatic as the difference between black and white. Most of us, in the meeting could probably barely, barely, not at all, relate to this IT shop.

I see the same when I see the average IT spend as a % of revenue between different industries with some industries spending perhaps 15% or more of their revenue on information technology where manufacturing companies might be spending less than 2%. That difference is just staggeringly huge and it manifests itself across the whole spectrum of IT investments between those industries.

The haves and have-nots I think.

It might be that the incumbents¬†in industries, those who have been around for a long time with embedded bases and IT foundations that just work, are going to slip behind and perhaps not be able to catch up? Start-ups who don’t have that base in place are free to startup on the newest, the latest, the cloud, the simpler, etc.

If a company is in the former situation, they need to double down on prioritzation, careful investment decisions and very strategic thinking about their IT infrastructure and operations. It is not easy.

 

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