Dion Hinchcliffe discusses the challenge for companies transitioning to digital business. Companies can no longer choke the spend on digital business technology. They will either fund it at the LOB level, at the IT organization level, or both.
Video Transcript: Technology Budgets and Digital Transformation
Alarmingly you would think that you know there would be a big stepping up to tackle the challenge of the dsily imperative of being a fundamentally digital company, because that’s where the market is going. So to be relevant as an organisation, you have to be on the digital channels with products and services that what look like the market is seeking and that’s a tall order and if you look at what the average budget spend for a digital company – Internet company, it’s double theaverag amount of IT spend for a non-fundamentally digital company, and that’s really the challenge is just closing that gap.
And so we see IT budgets, instead of being given to the traditional IT department, going into new digital lines of business or going to the existing lines of business where trying to digitalize and to do it like now. And they are taking their own resources locally and spending it on technology. So that’s where the budgets are going. It’s very little growth on the traditional side, but we are seeing IT spend it in other places of the organization.