The Red Herring Of IT Spend Estimates

I don’t believe in IT Spend. That is, as an analyst I think it is a waste of time to model, estimate and project IT Spend. Whether the models are for business applications, infrastructure, storage, business intelligence or worse that anyone could think it was possible, emerging technologies.  I think IT Spend estimations and projections are a superb waste of time for everyone involved.

Why?

Insurers use IT Spend estimates as a wonderful excuse to be part of the herd. You don’t have to concentrate to hear the bleating. You have to concentrate to not hear the cacophony of me-too bleats coming from the industry. “What is my competitor spending on (fill in the blank)? Then we should be spending about the same or possibly a bit more.” Well, no, I beg to differ. It is entirely irrelevant what your competitors are spending. That should not be your primary concern (or even secondary concern).

Your primary concern should be how to meet and exceed your policyholders and producers expectations. Your primary concern should be growing your revenue stream (yes, profitably!). Your primary concern should be creating such a strong competitive position that your competitors really do wake up in the middle of the night concerned about what you are doing.

Technology firms use IT Spend estimates as a wonderful excuse to stay on track. Yup, that’s what insurers are buying so let’s offer more of that (whatever ‘that’ is). How can these technology firms break out of their box of ‘today’ if they are primarily concerned with what insurers are supposedly spending. I say supposedly because if they really believe in these IT Spend estimates and projections, I have some land in Florida I’d like to sell them.

Do you believe in IT Spend? Really? Why?

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Published in: on September 29, 2009 at 5:18 pm  Leave a Comment  
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