Generating Premium Returns on Your IT Investments

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This is an MIT Sloan Management Review article. Although IT portfolio management has been a best practice for some time, many companies still generate substandard returns from their IT investments. Points out that investing the right amounts in the right IT asset classes is only the first step--a suite of interlocking business practices and processes collectively labeled "IT savvy" must complement IT portfolio management techniques. The benefits of establishing such practices add up to a tangible IT savvy premium: higher net profits and other performance gains. Cites a range of organizations in which IT savvy is ingrained, informing many of the companies' business decisions and sharply focusing their IT investments. Draws on the findings of a multiyear survey to review the different IT assets in which companies invest before discussing the gap in IT investment returns that separates those with IT savvy from those without. Presents five hallmarks of IT savvy and offers a series of practical suggestions for how managers can start to match IT savvy with the IT asset mix.
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