Thursday, June 24, 2004

Tech Sector Not Coming Out To Play

We now have a generation who are happy to type their own business letters, manage their own diary, develop their own scenario planning and accept IT as an essential part of a business as electricity, heating and stationery.

IT no longer matters, its a utility.

Value isn't being driven into the business by automation and business process engineering like 20 years previously, projects are still failing 70 per cent of the time and for most companies IT is not providing a competitive edge vis-a-vis their competitors. So companies are looking to cut their bills in line with standard procurement procedures:
- buy only what you need
- at the cheapest price (there are many ways to define this such as total cost of ownership)
- get it done overseas if its cheaper

Because of this enterprise IT companies are struggling to achieve high organic growth figures and they're rejecting the old ways of doing things. One of the old ways to bite the dust is the Comdex 'Fall' exhibition in Las Vegas. For a week Vegas became the IT mecca.

Expect a downturn in the sectors involved in trade show give-aways such as mousemats,
t-shirt printing and coffee mugs.