Companies are not making drastic cuts to IT budgets, but the
type of investment is changing in the
economic downturn, according to enterprise software supplier
SAP.
The demand is for fast implementation, quick return on
investment and low cost of ownership, said Verlin Youd, senior
vice-president for trading industries at SAP.
All IT investments are coming under closer scrutiny and IT
chiefs need very strong business cases to get any projects
approved.
Organisations are looking for "bite-sized" projects that meet
specific business needs and have measurable returns, according to
feedback from over 100 companies mainly in the
retail sector, he said.
According to Youd, measurement of business benefit and returns
has become more important and organisations are looking to get more
out of existing investments. Many are not using all they have and
are working with suppliers to exploit these systems more fully, he
said. Retailers are concentrating on using IT to improve pricing
strategies, to increase the efficiency of supply chains, and to
enhance the shopper's experience.
The biggest emphasis is on retaining customers both online and
in physical stores, said Youd. This includes managing staff to
ensure the right number are available at particular times to meet
changing demand.