IT is source of business revenue and margin

For the first 40 years since its inception, IT was solely used to automate internal business processes in order to reduce cost. The association with cost was further reinforced by the soft relationship between company revenue and money spent on IT.

Digitalization removes many of the layers that cause the dilution between $1 invested in IT and $1 in additional business revenue. Pandora, LinkedIn and Facebook have no analogue or even hybrid value proposition or channel: their business models only exist in cyberspace. This does not make IT costs any less significant, but with digitalization its relative importance changes. Both business and IT have to identify, measure and act on new sources of benefits and risks.

Less cost, more value, represents the ability to realize value from a business perspective.