4 Tips to Better Manage Your Firm's Technology Economics
[Technology Master, or Victim? Take this quick survey to see if your organization is a master of technology economics, a victim requiring more IT/cost insight, or worse. ]
The global technology economy for 2012 will likely exceed $4.8 trillion and will account for more than 6 percent of the world's gross domestic product. Only three nations will surpass it in total output: the United States, China and Japan. In addition, with an expected growth rate of more than 4.7 percent, the global technology economy will grow faster than all but a few of the world's economies.
Perhaps 10 percent of the global technology economy engine is in the world's financial services sector, with the average financial institution spending more than 6.5 percent of revenue and 8.4 percent of operating expense on technology. And even though the sector is struggling with finding growth while responding to regulation, its technology spending is facing upward pressure and significant increases.
The attention being paid to this phenomenon is highlighted by the increasing presence of technology expense information (and strategy) in investor relations materials and filings. Organizations now realize that technology expense is hitting the "leader board." They also realize that technology itself has gained new levels of attention on the Street and for shareholders. Therefore, there is a need both to master and to demonstrate the dynamics of technology to produce business value.
In this context, technology (and business) leaders have a distinct need to answer the question: "Is my organization a master or victim of its technology economy?" Hard and fast criteria for answering this question don't appear to exist, but this quiz has been circulated at a few recent IT events.
Try it. If you score between 7 and 10 on the quiz, then you are a "master" of your technology economy. You are a victim if your score is between zero and 6. If your score is less than zero, you are off the scale -- and probably the norm. But that "norm" just is not a good state of affairs.
[Technology Master, or Victim? Take this quick survey to see if your organization is a master of technology economics, a victim requiring more IT/cost insight, or worse. ]
Dr. Howard A. Rubin is a Professor Emeritus of Computer Science at Hunter College of the City University of New York, a MIT CISR Research Affiliate, a Gartner Senior Advisor, and a former Nolan Norton Research Fellow. He is the founder and CEO of Rubin Worldwide. Dr. Rubin is ... View Full Bio
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