Management and Finances

IT Spending on Innovation on the Rise

By Patrick Thibodeau

A new survey suggests that the tenure of IT leaders is rising, spending on hardware and software is decreasing, and more money is being put toward cloud services. Another area that is becoming a priority for IT spending is innovation. What does innovation spending really mean, and why is it happening?

Patrick Thibodeau writes, “Businesses are increasing their spending on technology, with cloud services as the big beneficiary.

“Hardware and software spending is declining as spending on cloud services rises, particularly on SaaS, according to the most recent annual survey from the Society for Information Management (SIM).

“Analytics/business intelligence and cybersecurity are the top two IT spending priorities, something that has been true for the several years. But marching into this mix now is ‘innovation’ spending, an IT category signaling business expectations for IT.

“SIM, which surveyed some 1,200 IT managers including 500 CIOs, said that innovation shot up from the eighth most important management concern in 2014, to fourth in 2015 to third this year.

“It’s not exactly clear, from the survey alone, what constitutes innovation spending, but Craig Pedersen, director of IT at Hunter Douglas and a SIM member, believes it’s about improving the top line.

“‘Innovation, in my mind, is more focused on the business and revenue generation,’ Pedersen said.”

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