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How Much Do Your IT Investments Really Matter?

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A new global study by Keystone Strategy suggests that how well you equip your company with information technology (IT) has become a more important factor to increasing profitability and revenue than how much you spend. Keystone Strategy is a global research organization formed by professors from the Harvard University Business School. This study found that the role of IT is critical to corporate revenue growth because it can enable companies to scale. In other words, businesses appropriately equipped with IT are more effectively able to manage and accommodate the necessary increases in complexity of processes, organization, and business model that accompany business success. Read the whitepaper to see the data outcome from the study.

IT capability helps companies grow.  The study of over 600 medium-sized global firms shows that IT capability is highly correlated with profitable business growth.  This result holds in both the US product and services sectors as well as internationally in Germany and Brazil.  The data indicates that IT accelerates firm growth because it enables firms to scale -- an ability to manage increases in the complexity of their business processes, organization and business model.  Firms with business process scalability find it easier to overcome obstacles to growth, differentiate themselves from competitors, and quickly capitalize on opportunities.  IT does matter.  It is an essential ingredient in long-term business success and not merely a commodity that adds little to the firm's ability to thrive.  IT drives growth.  

Read the study whitepaper here.

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