Which of the following is true of IT spending in an organization?
A)Increased IT spending is usually associated with investor dissatisfaction and reduces companies' market value.
B)The funds used to run a business are mainly for the kinds of IT resources that now fall into the commodity category
C)Since IT is only an operational requirement and not a strategy enabler, companies should seek to reduce IT spending.
D)Organizations should spend money on things that create a comparative advantage rather than on IT.

Question

Quizplus · Accepted Answer

IT spending is necessary for organizations to remain competitive, efficient and effective in the current digital age. However, not all IT expenditures are strategic or value-producing; some costs are related to day-to-day operations or maintenance. The funds used to run a business are mainly for the kinds of IT resources that now fall into the commodity category, such as hardware, software, networks, and infrastructure. Therefore, companies should prioritize their IT investments by focusing on strategic initiatives that contribute to their unique value propositions and competitive advantage.

Which of the Following Is True of IT Spending in an Organization