Crank Up the Return…

 Making the Case for IT investmentappeared in the Globe and Mail on the 17th of May, 2007 and was written by Terrence Belford. The article highlights the fact that the Canadian economy lags that of the US when it comes to investment in productivity enhancing IT.  Is it that Canadian entrepreneurs are myopic vis-a-vis their US neighbours, and do not realize the competitive or growth enabling benefits of IT investment? Perhaps, it is simply a matter of not being able to justify the ROI?  

The challange according to Stuart Crawford, President of IT Matters Inc., is in showing the prospective client the value of their investment. No business owner would make an investment knowing that the return wouldn’t outweigh the investment.  So that there’s been a shift from selling generic solutions to tailoring them to the company’s particular needs. Robert Courteau, president of SAP Canada, agrees with this this approach and adds the importance not only of making a business case for the investment but also matching that the right products at the right price. 

But put aside budget and ROI, beacuase Belford says that the CFIB’s recently conducted survey reflects that still too many Canadians are simply indifferent and can’t see the need to expand or gain a competitive edge. 

In the wake of the global economy, competitive edge has been paramount to success. IT investment needs to be leveraged in order to enable corporate strategy: Whetherto differentiate one’s offering or to reduce one’s cost. The key is identifying what processes, or solutions will have the biggest impact on the business – In other words know your business so far as to blue-print it! In my experience meeting with many small and medium size business owners, I find that the principals are too eager just to make an IT investment without determining with the strategies and goals of the business are first.  Many assume that an IT investment of any kind is positive…I hope you wouldn’t take the same approach to your personal investment portfolio! Sometimes the most simple systems are the most beneficial for SME’s. Remember…Show me the money! (what is the ROI??).