How Are You Spending Your IT Dollar?
Even in today’s tough business climate, we still see companies making investments in IT systems, especially in the e-commerce area. In many direct businesses, more than 50% of sales are e-commerce based, though those sales may have been spurred by receipt of a catalog.
Long before the current economic slowdown, many companies had become more conservative with their IT spending because of the amount of capital needed for those investments. In the past two years, we have seen management require an 18 to 24 month return on investment (ROI). However, we also see companies with aging order management legacy technology replacing an order management system if they find it inhibits their ability to adapt new technologies, for new back office and Web applications. The bottom line is, no management team wants to go out and spend money on technology without getting both short and long term benefits.
Our purpose in this article is to identify what direct companies are typically spending on IT systems, and give you a blueprint for applications with the highest return on investment. The data presented here comes from F. Curtis Barry & Company’s IT consulting experience with our clients.
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