Technology

Even though Albert Einstein made this observation in 1939 at Cal Tech, his remarks continue to be valid in today’s management of Information Technologies.

As proof of this assertion, there is an interesting conclusion in a recent book, IT Governance: How Top Performers Manage IT Decision Rights For Superior Results (Harvard Business School Press, 2004): Companies with excellent IT governance have profitability levels that are over 20% higher than those with poor governance, given the same strategic objectives.

On average, US companies spend more than $9,000 per employee, per year on computing, communications technology and support. Some companies spend more than $22,000 per employee, per year on technology. At the same time a "typical" IT organization delivers fewer than a third of IT projects on time, on budget and with the promised functionality. About 65% of companies have either a negative or neutral view of the ability of IT and business managers to work together in supporting corporate goals and objectives.

To make sensible use of Information Technologies, businesses must adopt a strong IT Governance paradigm.