Decoding the IT Value Problem: An Executive Guide for Achieving Optimal ROI on Critical IT Investments

CHAPTER 14

Conclusions

EXECUTIVE SUMMARY

Information technology is essential for growth and success in competitive markets. But IT and business strategy must be tightly aligned to avoid wasting time and money. The key to that alignment is good governance and active participation of C-level executives.

As a career IT professional, I am disappointed that Howard Rubin is not more widely known outside the IT industry. In my opinion, Dr. Rubin is the preeminent thought leader of IT economics. His research and his writings provide the best and strongest arguments for investing in IT. In his own words, “. . . technology is a strategic lever, a tool to drive new business growth, protect revenue, reduce business costs and manage risk.”

Dr. Rubin has created the Rubin 300, an experimental market index of firms that have been identified as technology leaders. The index, also known as the Technology Leaders Index, or TLI, “tracks the indexed market capitalization of more than 300 leading technology firms in 21 sectors as well as the Dow Jones Industrial Average (DJIA), the Standard & Poor's 500 (S&P 500) and the Fortune 500,” writes Dr. Rubin.

The TLI is a truly valuable resource. Smart CIOs will find a wealth of information supporting the critical relationship between IT investment and economic success.

“From January 2006 to Dec. 31, 2010, the TLI has consistently outperformed the S&P 500 and, since the beginning of 2010, has begun to surpass the DJIA. Since the beginning of the study, ...