Trends Report

The Shrinking Productivity Gains From Technology Investments

CIOs Will Need A New Approach To Justifying Their Tech Investments

May 1st, 2019
AB
Andrew Bartels
With contributors:
Matthew Guarini , Brian Hopkins , James Staten , Alyssa Danilow

Summary

Improving productivity has been core to the value proposition for technology investments. However, trends in overall US productivity indicate that tech spending is not delivering the same lift to productivity it once did. Of course, there are exceptions to this emerging rule, so there are still many cases when tech investments can be justified based on productivity gains. CIOs will increasingly need to justify tech investments based on effectiveness and probabilistic benefits (more positive outcomes; fewer negative outcomes).

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