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"Technology"
New research points to procurement improvements from increased IT investment
Increased investment in IT can have a positive impact on procurement, according to new research by the Hackett Group.
According to the company's latest Book of Numbers, "ROI in Technology: The Key to World-Class Performance", Hackett found that world-class IT organisations - defined by those who achieve peak efficiency and effectiveness in IT benchmark studies - spend more than 7% per end-user on IT operations than typical companies.
Hackett claim that this increased investment is more than compensated for by the reduction of costs and improved performance in areas such as procurement and other back office functions.
Their findings also suggest that the most successful companies outsource selectively, and use the strategy as a tool to improve effectiveness rather than efficiency.
According to Hackett Senior Business Advisor Philip Carnelley, "Hackett's research clearly shows that for world-class companies, IT is an invaluable business resource that helps them lower costs and reduce staffing across the back office, streamline operations, and cut the time staff spend on transactional activities.
"These top performers also understand that the right IT systems make them smarter, facilitating improved strategic decision-making and enabling them to gain insights into their business, market, and competition."
