Though industry surveys show IT budgets are growing, there is still significant management focus on controlling IT costs, and corporate leadership is facing unprecedented pressure to deliver demonstrable returns on investment. Surveys show that across industries most companies spend about three percent of their revenues on IT, with spending primarily determined by past practice rather than strategic alignment to business imperatives.
An independent industry wide survey of 309 companies conducted in December 2003 and January 2004 revealed that companies are still determining how to become adaptive organizations. They are looking for the ability to predict the future, map current IT resources to business demands, and analyze IT strategies used in the past. An adaptive organization can change faster, with less risk and reduce costs to meet business demand.
Such research alludes to the disconnects companies are facing – different views among business and IT mangers about the role IT plays in the business, the value that IT can bring, and the management practices needed to effectively bring IT to bear on business strategies.
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