Management Tip of the Day: Don't overinvest in IT
BOSTON (Reuters) - A few key strategies, such as not being the first to charge out of the gate and buy new technology, can be a way to avoid costly IT spending mistakes, says Harvard Business Review.
The Management Tip of the Day offers quick, practical management tips and ideas from Harvard Business Review and HBR.org (www.hbr.org). Any opinions expressed are not endorsed by Reuters.
"Businesses worldwide pump $2 trillion a year into IT -- and many of them are spending too much.
If you fear you're overinvesting, try these three tips:
1. Follow, don't lead. You don't have to be the first one out of the gate. Delay investments to save money and see what standards and best practices emerge. Let your impatient rivals shoulder the costs of experimentation.
2. Focus on risks, not opportunities. Don't deploy your IT in radical new ways. Instead, dedicate your spending to mitigating disruptions like outages and security breaches.
3. Spend less. Evaluate expected returns from IT investments. What's essential spending versus discretionary or unnecessary? Then eliminate waste, such as frequent upgrades."
-Today's management tip was adapted from the book "Harvard Business Review on Aligning Technology with Strategy."
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