Comments on: IT’s role in the causes of this recession http://blogs.gartner.com/mark_raskino/2009/04/06/its-role-in-the-causes-of-this-recession/ A member of the Gartner Blog Network Mon, 04 Oct 2010 21:12:19 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Jude Umeh http://blogs.gartner.com/mark_raskino/2009/04/06/its-role-in-the-causes-of-this-recession/comment-page-1/#comment-49 Jude Umeh Mon, 06 Apr 2009 11:51:21 +0000 http://blogs.gartner.com/mark_raskino/?p=121#comment-49 Interesting article, and the points above illustrate the real role of IT, as an enabler, amplifier or agent of change, albeit for better or worse. This was also echoed in my somewhat more forward-looking blog post about a recent event on "the Role of IT in a Recession" --see: http://www.capgemini.com/technology-blog/2009/03/crunch_it_the_role_of_it_in_a.php . The main focus was, and should still be, very much on how IT might be used to help individuals and organisations adapt and cope better with the current recession. Interesting article, and the points above illustrate the real role of IT, as an enabler, amplifier or agent of change, albeit for better or worse.

This was also echoed in my somewhat more forward-looking blog post about a recent event on “the Role of IT in a Recession” –see: http://www.capgemini.com/technology-blog/2009/03/crunch_it_the_role_of_it_in_a.php . The main focus was, and should still be, very much on how IT might be used to help individuals and organisations adapt and cope better with the current recession.

]]> By: Jeffrey Mann http://blogs.gartner.com/mark_raskino/2009/04/06/its-role-in-the-causes-of-this-recession/comment-page-1/#comment-48 Jeffrey Mann Mon, 06 Apr 2009 09:59:23 +0000 http://blogs.gartner.com/mark_raskino/?p=121#comment-48 I don't think that IT people can whistle through this. While they were "only" supporting business decisions, IT systems directly contributed to two important causes of this mess - overly complex derivatives - risk management system used to justify those investments. There is an old cliche that if you really want to mess things up, use a computer which applies here. Bankers would not have been able to create the multi-layered securities which ultimately had dodgy loans at their core without sophisticated computer systems. They would not have been able to get them past auditors and regulators without the expensive risk management systems which actually were designed to whitewash unfathomable risks rather than really manage them. I wrote about this in October here: http://blogs.gartner.com/jeffrey_mann/2008/10/06/how-long-before-it-gets-blamed-for-the-financial-crisis/ I don’t think that IT people can whistle through this. While they were “only” supporting business decisions, IT systems directly contributed to two important causes of this mess
- overly complex derivatives
- risk management system used to justify those investments.

There is an old cliche that if you really want to mess things up, use a computer which applies here. Bankers would not have been able to create the multi-layered securities which ultimately had dodgy loans at their core without sophisticated computer systems. They would not have been able to get them past auditors and regulators without the expensive risk management systems which actually were designed to whitewash unfathomable risks rather than really manage them.

I wrote about this in October here:
http://blogs.gartner.com/jeffrey_mann/2008/10/06/how-long-before-it-gets-blamed-for-the-financial-crisis/

]]> By: Louis http://blogs.gartner.com/mark_raskino/2009/04/06/its-role-in-the-causes-of-this-recession/comment-page-1/#comment-47 Louis Mon, 06 Apr 2009 09:56:09 +0000 http://blogs.gartner.com/mark_raskino/?p=121#comment-47 Cause maybe not, but amplify for sure. The paradox in my opinion is that IT could have also been as much a barrier as it was an amplification to the problem. The fact that most businesses do not utilize IT to its fullest extent - especially the free and opensource tails - could even be one of the reasons why this "amplification" took place. Cause maybe not, but amplify for sure. The paradox in my opinion is that IT could have also been as much a barrier as it was an amplification to the problem. The fact that most businesses do not utilize IT to its fullest extent – especially the free and opensource tails – could even be one of the reasons why this “amplification” took place.

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