Question: A new financial analyst at your firm has been tasked with performing a competitive analysis of your firm's IT spending versus your three top competitors.

A new financial analyst at your firm has been tasked with performing a competitive analysis of your firm's IT spending versus your three top competitors. Over lunch with you and a couple of other recent hires, the coworker shares that her analysis shows your firm is spending just over 4 percent of revenue (recent annual revenue for the firm was $150 million) on IT while your company's competitors are all spending less than 3 percent (recent revenue ranges from $300 million to $400 million). She asks the group if they think this spending difference is significant and if she should highlight it in her report. What would you say?

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Organizations typically spend 1 to 6 percent of their total revenues on IT This spending is generall... View full answer

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