CCT225H5 Study Guide - Quiz Guide: Fast-Moving Consumer Goods, De Beers, Good Governance

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Information technology remains a terrible bottleneck to growth in most companies, mainly because executives focus on the wrong remedy for their it problems. In the next few years, competitors caught up and surpassed it transformed itself into a full-service, online broker. Schwab"s it staffers responses to business requests had become slow and expensive. It engineers had to spend more time fixing bugs in the system. Ambitious programs became overdue: one important one was the tax-lot accounting system that schwab, slow progress of these projects prevented the company from responding envisioned to serve its most profitable customers effectively to competition. Company kept throwing money at projects because they did not see an alternative. Red flag went up when schwab found itself spending 18% of revenue on it while three of its leading competitors were spending 13% or less (cost disadvantage equaling hundreds of millions of dollars) It and business priorities must be tightly linked.