Emergic: Rajesh Jain's Blog

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Business Usage of Computers

November 21st, 2002 · No Comments

Writes David Wessel: “It isn’t how much a business spends on information technology that spurs productivity. It’s how it uses it. Across the economy, businesses are trimming computer budgets. But the late 1990s productivity spurt persists because they’re figuring out how to get more out of the technology they’ve already purchased. That’s bad for chip maker Intel Corp.’s bottom line, but good for the economy.”

He adds: “A report to be released next week by the consulting firm’s think tank, the McKinsey Global Institute, comes to a conclusion that sounds obvious, but was overlooked by many chief executives during the 1990s computer-buying spree: Buying computers isn’t an end, it’s a means to executing a smart strategy. Too many companies bought one-size-fits-all solutions that didn’t fit. Now, management consultants always conclude it’s the strategy (their product) not the technology (someone else’s product), but they see enough botched projects to have insights worth pondering.”

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