In a modern business, it is almost a truism to say that technology cannot be treated as a cost centre. Studies have shown that companies that invest in technology to gain a competitive advantage and enable innovation are widely more successful than those that do not. One paper found that investment in technology increased profitability significantly more than advertising and R&D, and that technology investments have a stronger effect on profitability through revenue growth than through reducing operating costs (Mithas, et al., 2012).
