Capitalism has always been characterized by a massive scrap heap of failures.
Not to say the ‘winners’ don’t make it all worthwhile!
By Javier E. David
Oct 31 (CNBC) — Large companies often spend a good deal of money on cultivating their technology, but a new study suggests nearly 70 percent of what they spend may be misallocated.
In a study, Genpact Research Institute recently found that, of nearly $600 billion spent on digital projects, almost $400 billion of it was invested in projects that fall short of expectations and returns on investment (ROI). In fact, much of what companies invest in technology sustains existing, or “legacy” systems, rather than new technology, the report found.
In a global market for technology spending estimated at $4 trillion, an amount that research firm Gartner expects to shrink by nearly 5 percent this year, the wasted money can be significant. It suggests companies will be operating from a smaller pool of money, and will need to invest it wisely.