Bigwigs haven't a clue on IT asset values
Global firms missing a trick, study says
Businesses that dominate the global economy have no idea what the financial value of their IT assets is, according to a new study.
Although firms spend billions of dollars on IT each year, few businesses are able to pinpoint the value of their technology assets compared to cash, brand, property and intellectual property, according to UK software developer Micro Focus.
A survey of 250 bigwigs at leading companies throughout the US, France, UK, Italy, and Germany, found that less than half ever tried to quantify the financial value of their firm's IT assets.
The UK and Italy performed particularly badly in the study. Just one in five chief information officers and finance directors said they understood the core value of their software assets.
Germany performed better than any other region with 60 per cent of respondents saying they knew the size of their core software assets. This compared with 52 per cent of US biz exec counterparts, 40 per cent of Italians, and 36 per cent of French.
Micro Focus also found that 30 per cent of all respondents in the study were clueless about how much cash was spent each year by their companies on software.
Perhaps less surprisingly, finance directors were found to have a better handle on understanding and valuing IT assets compared to chief information officers.
Micro Focus CEO Stephen Kelly said: "The huge scale of IT spending in companies flags a critical issue for company boards and shareholders alike.
"If organisations do not know the cost and value of IT assets, then they must be severely challenged to make the right IT investment decisions moving forward."
The full study can be viewed here. ®