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To buy or not to buy: the IT Procurement Manager's question

Should information systems managers delay investment in new technologies until there are substantial demonstrated benefits and the price of the new technologies drops?

What are the advantages and disadvantages of being pioneers of new technology within an industry?

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In most cases, a prudent IS/IT manager would delay investment in new technology unless the new technology was so disruptive and the disruptive benefits were of a strategic nature OR if the technological advances created huge downward price pressures on technology in general. But even then, it is probably most prudent to purchase only as required (i.e.: replacement in the case of failure) rather than based on new benefit claims or price reductions. The biggest defense for delaying such an investment is that the true costs of technology upgrades is much higher than the price or cost of the technology itself, but also installation, integration with existing technology, project, service and training costs ...

Solution Summary

This solution describes a prudent approach to IT procurement.