Research by
KPMG and
Micro Focus has highlighted how leading companies do not
disclose the true value and potential of their current software
application assets.
A study into the disclosures made into the accounts of a number
of leading companies revealed that out of 70 companies across six
industry sectors, only six explicitly attribute any value to
technology assets in their annual accounts.
“If businesses could find a way to show the fair value of their
IT application assets, investors would be better informed,” said
Philip Adler, director at KPMG. “Businesses may well make different
investment decisions when renewing the value of IT systems
companies have. Enterprises’ foundations, such as the inventory
applications used by
Tesco, are built on these types of assets and are inherent
throughout any business.”
“Companies in today’s competitive business landscape are
striving to demonstrate value to shareholders and customers,” said
Soumitra Dutta, professor of information systems at Insead business
school. “Exploring how companies today show the value of their IT
applications, and assessing the opportunities for a more robust
valuation of these assets in the future clearly needs more
research,” he added.
Laurie M. Orlov, vice president and principal analyst at
Forrester said that CIOs should be taking stock of their IT
investments, evaluating the inventory, and creating a management
structure to cut waste and streamline operations wisely. “IT will
still play a marginal role in enterprise strategy and
decision-making as long as its value remains undisclosed,” she
said.
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