Survey Reveals IT Spending 57 Percent Higher in Companies Where It's Considered an Enabler of Growth

Bain: While majority of executives agree that IT is relevant to growth, 60 percent complain it's inhibiting growth in key areas


However, based on survey responses, overall IT effectiveness waned as it was applied to growth adjacencies that extended further and further from a company's core business. In order of increasing distance from the core, these growth adjacencies include new products or services, new types of customers, new channels, new geographies, and finally new steps in the business value chain.

And Bain said an even more dramatic reversal in attitudes occurred when senior executives were asked if IT enables or inhibits growth initiatives that are totally unrelated to a company's core business. The number of respondents that believed IT inhibits growth was 50 percent higher than those who believed IT enables growth when applied to new, non-adjacent initiatives.

Berez summarized, "There's no place like home when it comes to creating profitable growth. Bain's survey results show that IT is an important contributor to the increasing difficulties firms face when seeking growth farther from their core business."

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