Archive for May, 2010

JCP Bets Big on IT

May 4, 2010

JCP is boosting IT spending again this year even as it cuts back on other capital spending.  JCP spent $139 million on technology last year (23% of cap ex).  The focus will be on supply chain improvements and growth in eCommerce.  JCP expects the Internet to deliver $1 billion in sales over the next five years.  I’ve heard CIO’s comment before that CEO’s don’t ‘get it’ when it comes to technology but this one certainly seems to get it… “This is the next generation of how to make things better, and how to be a better competitor,” says Chief Executive Myron E. Ullman III. “People who are going to survive are working on this.”

Technology certainly can be a way to reduce expenses through greater efficiency but is technology a viable business growth strategy?