Time for a new mantra in the world of business, says Michael Schrage, research fellow at the MIT Center for Digital Business and visiting fellow at the Imperial College Business Schools Innovation and Entrepreneurship Group in London. A possible candidate expression is the one he cites in an interview with MIT Sloan Management Reviews editor-in-chief, Michael S. Hopkins. That expression is a quote from Warren Buffett, who has said, "Price is what you pay, value is what you get.
Schrage urges executives to view IT as more than just commoditized infrastructure that works -- one hopes -- when the switch is thrown. Instead, he argues that management must understand the value it wishes to achieve and then reverse engineer their processes in order to ensure realization of that value. Experimentation, according to Schrage, is cheaper and less risk-laden than it used to be, given the advances delivered by evolving IT technology.
A video accompanies the article.
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