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CIO Talk Network

CIO Talk Network

Wednesday at 7 AM Pacific

April 07th 2010:Is "IT as a percentage of sales" a good benchmark?

Using "IT as a percentage of sales" can be misleading. For example, if a company is highly integrated and sales go down due to externalities, IT may look inefficient and costly. If part of the company is spun off, IT may look more efficient while actual IT functioning remains the same. A company that uses a large supplier base, may have a small IT that looks efficient simply because some IT costs are hidden in the cost of purchased components. How accurate is the "IT as a percentage of sales" statistic, and should it have the prominence it has, as a benchmark?

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https://www.voiceamerica.com/show/690/cio-talk-network 19/11/2017 08:00 19/11/2017 09:00 CIO Talk Network https://www.voiceamerica.com/show/690/cio-talk-network Using "IT as a percentage of sales" can be misleading. For example, if a company is highly integrated and sales go down due to externalities, IT may look inefficient and costly. If part of the company is spun off, IT may look more efficient while actual IT functioning remains the same. A company that uses a large supplier base, may have a small IT that looks efficient simply because some IT costs are hidden in the cost of purchased components. How accurate is the "IT as a percentage of sales" statistic, and should it have the prominence it has, as a benchmark? VoiceAmerica | Talk Radio | Online Talk Radio studio@voiceamerica.com false DD/MM/YYYY Add to Calendar
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