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Switchfast Blog: The Future of IT

Increase in IT Spending Points to IT Innovation

Monday, July 26, 2010 by Bryan Anderson

While the debate on stimulating economic turnaround continues, one industry is already returning to form. According to a report from Forrester, "U.S. IT goods and services spending will jump 9.9 percent in 2010, compared to 7.8 percent growth worldwide." Not only is this number encouraging, but it represents a 1.5 percent increase over Forrester's last estimate in April for U.S. spending (global growth remained constant).

So what's the story behind these numbers? Forrester suggests that growth is because "the U.S. is entering an innovation cycle marked by adoption of new technologies." The article points out HP's latest contract renewal with General Motors for $2 billion as a sign of their "large deal appetite."

While insufficient data was available to include telecommunications services in the report, lead analyst Andrew Bartel summarizes his opinion based on the findings, noting that "communications equipment purchases are looking up, especially for enterprise and small and medium-size business (SMB) buying; computer equipment and software will be the strongest categories."

In an article from ZDNet.com, Joe McKendrick believes the numbers show the "pent-up demand from purchases being held off the last couple of years," when either budgets or profits had limited wiggle room. He also points out initiatives like analytics and data management that may affect the 'innovation cycle.'

With more companies willing to invest in IT, the landscape will experience a period of technical innovation. An article from Computerworld.com outlines a few elements for providing an environment that sustains innovation:

  • Employees need the right to fail-it's hard to innovate when there is fear of being wrong
  • From top to bottom, anyone (and everyone) within the organization should take responsibility for innovation
  • Establish partnerships with other departments to communicate and articulate benefits of technology-driven innovations
  • Create an area or environment for innovative ideas and experiments, one where people can test and hear various ideas
  • Carving out processes and declaring ownership-promising ideas and experimental tests need facilitating roles

Remember to take a step back and observe whether your company can do something more efficiently. Getting caught up in the usual routine can stymie workplace innovation.

 

Until next time -

Matthew Hymel 

 

Switchfast Technologies
Chicago IT Support & Consulting
Rochester IT Support & Consulting

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