IT Savvy: 20% Higher Margins From MIT
MIT Sloane researchers have released a new book, “IT Savvy: What Top Executives Must Know To Go From Pain To Gain“ by Peter Weill and Jeanne Ross,  describing what non-IT business leaders need to know to make IT part of the solution rather than part of the problem.
 ”Firms with above average IT spending and IT savvy have 20% higher margins, those with an above average percentage of shared applications and IT savvy have 30% higher ROAs, and firms with above average IT infrastructure spending and IT savvy have revenue growth three percentage points higher than their industry average.” Â
They define three major points that must be addressed:
1. Actively choose how to spend IT dollars and assign clear decision rights and accountability…. and eliminate information silos and unscalable projects
2. Automate core business processes: business innovation and execution  ”Start by identifying what’s not changing. The core business processes in your firm that are not changing define a reliable set of reusable IT-supported data and business processes. The digitized platform standardizes and automates these processes, thereby increasing reliability, decreasing operational cost, and ensuring quality.”
3. Exploiting the platform for profitable growth: “Once those changes are made, the addition of a new feature or geographic region is much faster because companies don’t have to spend time integrating a new product or service with the silos that exist. Instead, it bolts on like a Lego block, and with this approach, you get faster time to market on products and services which leads to higher revenue growth.”
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