Gartner: IT will support innovation

IT will move from a method of cost control to a tool that supports business innovation and growth within two years.

Delegates at Gartner's 2003 European ITXpo Symposium in Cannes heard chief executive Michael Fleisher reiterate his message that major changes in the market are about to occur (see Computing, 23 October).

'Innovation to support growth will emerge as your chief executives' number one priority, moving ahead of the focus we've seen on cost cutting over the past few years,' he said.

The shift in focus is reflected by a rise IT budgets for the first time in years.

Gartner expects an average increase of 3.4 per cent next year, after zero growth this year and a minimal 1.3 per cent rise in 2002.

'2004 will be the year that most companies change from cost cutting to supporting business growth. By 2006, new technology will be driving growth in new and stunning ways,' he said.

But Fleisher sent out a warning that companies that don't change their businesses will lose their competitive advantage.

'What defines success today will not define it tomorrow,' he said. 'We said in early 2000 that 95 per cent of all dotcoms would die in the next two years. Today, the changes ahead are just as significant as then, but most of us keep acting as if it's business as usual.'

'Over the next couple years, organisations will need to start thinking strategically again. The companies that invest wisely will gain tremendous competitive advantage,' he said.