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The Growing U.S. IT Productivity Gap

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Productivity growth has slowed down despite our rising investment in IT.

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The Growing U.S. IT Productivity Gap

  1. 1. 2006 Amazon web services launched 6 1990 2000 2010 .2% 1.2% 1 2.6% 1991 World wide web debuts 1997 Wifi 1998 Google THE GAP GROWING Productivity growth has slowed down despite our rising investment in IT What is it? 4 6 5 5 Complexity 55-72% of IT spend is operations & mainterance Acceleration of security attacks 40% increase in recent years Acceleration of data doubling its size every 2 years By 2020, the digital universe will be 44 zettabytes Old infrastructure mobile & cloud technology is bolted onto 30-year-old systems Causes How to close it Estimated $2.7 trillionAnnual cost IT spend at 11% 3 2007 iPhone debuts $1.4 million units 2015 IT spend at 5.5% 2 iPhone sales $231 million units Greater focus at the “Technology Frontier” Frontier firms apply innovative technologies to business solutions – so workers can becomemore productive The productivity growth of the frontier firms is now 3-4% more productive than non-frontier firms Connect people & processes with new technology Streamlined use of cloud/mobile technology, document management, data availability & asset management improves: Customer/client/stakeholder service Business critical KPIs Sector competitiveness Employee efficiency Security 2012 Wifi in 25% of global households 1 Source: Bureau of Labor Statistics 2 http://www.gartner.com/newsroom/id/3368517 3 http://www.gartner.com/newsroom/id/742913 4 http://www.computerworld.com/article/2486278/it-manage- ment/how-to-balance-maintenance-and-it-innovation.html (2014) survey of IT managers by Forrester Research reported the “keep the lights on” component of the IT budge 5 https://www.emc.com/leadership/digital-universe/2014iview/executive-summary.htm 6 Need reference data from Synergy Keynote U.S. IT PRODUCTIVITY ITSPEND PRODUCTIVITY