May 25, 2009

Why this is the time to grow and invest in your business

I know this are hard times and most consultants and economists say "wait we haven't hit bottom yet", "indexes are fluctuating an average of 20% each month", "dont spend the cash needed for a long downturn" and worst of all they are still talking about cutting costs in IT.

Today investments in IT capital projects and IT talent are cheap ; best talent and products at the lowest prices since 2002.

I am very surprised that the financial press has not learned anything from past recessions. Always during the last third of the recession we can see which companies are going to excel. The companies that showed "profits" only by cutting costs will find themselves losing market share. Companies that maybe sacrificed profits but grew in revenues and also revisited their marketing and product strategies will be winners when everything quiets down.
This is the time to invest in R&D, new business processes, new strategy and yes even aggressive marketing.

What all this has in common? IT projects

-"History also suggests some possible indicators of the beginning of a recovery. In three of the four most recent recessions, ...... IT spending led the way"- The McKinsey Quarterly

Cycles for IT projects >> 10 to 18 months . Why not start when everything is slow, cheap and with excellent talent? Best of all be ready when the economy starts rebounding.

To all my clients ( IT vendors and CIOs) I recommend using summer 2009 as a strategic jumping board. This is the time when you will make a difference.

CIOs: time to start new initiatives like self service, mobile, new business processes, enterprise risk management and yes a more efficient data center.

Vendor CEOs: time to invest in new products, sales training and marketing.

One thing is important START & KEEP MOVING dont get hit by the MOVING COMPETITORS.

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