With Y2K consigned to history, the floodgates are set to open on technology investment.

Market research company Rhetorik says its figures reveal many companies are getting ready to upgrade systems, following a go-slow on spending in the run up to the Millennium date change. Anticipated levels of spend are projected to be up by 500%.

But these figures are followed by a report that the Chartered Institute of Management Accountants believes much investment in technology is wasted.

The CIMA says that many businesses, especially SMEs, are failing to adequately specify what they want from their investment and then check whether they actually achieve it.

A part of the blame is laid at the feet of government departments like the DTI, who tend to advocate a blanket take-up of technology and ignore the need to develop the business case first.

Elliott Chase