Retailers are continuing to invest in information technology despite all the various economic factors that are causing chains to cut back in many other operational areas. This development, according to RIS News, represents a fundamental change from how companies have reacted during past economic slowdowns.
Bill McDermott, president and CEO, global field operations and executive board member of SAP AG, is among those who have seen retailers continue to invest in IT.
"CEOs are putting technology on the short list of capital investment," Mr. McDermott told RIS News. "They are putting their corporations in a position to build muscle mass during a down time. Certainly compliance factors are driving IT investment, but more importantly CEOs want to position themselves to win against their competitors, and technology can make this happen."
According to Mr. McDermott, "this is the best time to invest in technology that will get your application platform strategy right and deliver strong returns when the market rebounds."
Discussion Questions: Why do you think that companies are continuing to invest in IT while cutting back in other areas? What specific areas of IT do you think are getting those increased investment dollars? What is the payback?