alleryStart learning →Which complaint do senior executives make about technology spending?
ASpending is too low to keep any systems running
BSpending buys equipment that no vendor supports
CSpending is high but the payoff is inadequate
DSpending is fixed by law and cannot be varied
Answer & Solution
Correct answer: C. Spending is high but the payoff is inadequate
1. Companies make sizable investments in information technology but often do not reap the desired benefits.
2. A typical complaint is that the company is spending too much and not getting adequate performance and payoff from those investments.
3. Executives also complain that the investments do not relate to business strategy.
4. They add that the firm seems to be buying the latest technology for the sake of technology.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 13 "Using Technology to Manage Information", section 13.4 Technology Management and Planning_
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