December 15th, 2008
I believe in IT. Even with all the gloom in the economic news, IT will play a major role in the recovery. This economic mess is not a typical business cycle of supply and demand balance or imbalance. It’s rooted in the greed of a few who sold sub-prime mortgages to those who could not afford them, rating agencies that gave AAA rating to BBB sub-prime mortgage-backed bonds, investment banks that solicited investors to short these bonds only so they could use the short to synthesize and multiply the number of bad bonds which eventually clogged the credit market and ignited the stock market crash of 2008. This cycle of greed has and will continue to cost us, our children and our grandchildren dearly as we are forced to bail out financial institutions, the auto industry and fund a stimulus package sized in the $500 to $700 billion range. With this concerning economic backdrop, I believe in IT more now than at any other time in my career. Why? Because after all the cost cutting, reduction in force or layoffs, supply chain rationalization, expense reduction initiatives, etc., IT is the only tool humans have to improve and sustain productivity gains.