Large companies which make IT a board level priority have higher price to earnings ratios than those where it is regarded as an operational issue, new research has found.
Sponsored by City based consultancy Orb, the IT and Corporate Performance 1999 study surveyed corporate strategists and senior IT staff from companies with turnover exceeding £250 million.
It was carried out by market research firm Finlay Wilson in April, who subsequently sought to draw a link between companies’ attitudes to IT and their financial performance.
Of the 52 public companies surveyed, those that regarded IT as strategic averaged price/earnings ratios of 23, while those that did not averaged ratios of 19.
Fifty-five per cent of boards did not view IT as a top three issue, and a quarter of strategists did not involve IT in corporate planning, the report found.
The majority of companies which involved their IT staff in strategic planning were impressed by their skills, while almost a third of those that did not claimed their IT staff were poor strategists.
Inadequate resources also meant IT staff spent the majority of their time dealing with day-to-day issues and had little time to devote to strategic planning, the report found.
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