The Hub Commentary_
I’ve commented in this similar vein on many posts this year and the cost calculation and business value is covered in my post and recorded presentation here on The Hub. My friend Michael sums up this topic well with citations from InformationWeek and Forrester. It is not about the technology, it is about the service value the technology brings to the business, something those in the business service management practice have known for many years.
So what makes it different now and why is it so prevalent in the news? That’s an easy answer, Competition ala service providers. Today in fact I discussed just this topic with a global audience and why competition will be the catalyst for change or outsourcing this time. Service providers are going direct to the business to sell their services. They speak exactly the language the business wants to hear, make it simple to buy and this will push IT organizations to adopt a business service management practice or get outsourced.
I like the notion of a Chief Acceleration Officer. I enjoy times and situations like this where there is a challenge to solve for and the requirement for change where I know most IT organizations are change averse. IT has been in this cycle of 80% + spent on just keeping the lights on for more than 20 years. This equates to 1-2% of revenue annually just running the operations and thus very little is expended to grow the top line. This is crazy when technology should be driving business innovation and growth.
I challenge you to pick up this years Fortune 500 magazine and then pick up next years and see who takes over leading their industry and that will tell you who embraced technology to drive growth and create efficiencies within IT to shift that 80/20 pie to something more like 60/40. I wholeheartedly agree with my friend Michael, it’s about the agility and business value that a technology brings an organization. Efficiencies are good, but should not be the only focus.
How are you driving service value and agility to be the change in your organization?
With the promise of cloud computing splashed across every headline today, it’s easy to lose track of where its greatest opportunities lie. Yes, saving money is important. It can help nudge the dreaded 80/20 maintenance-to-innovation ratio in the right direction. But when you’re thinking about the cloud, don’t stop there. It’s agility that can drive business growth and innovation, turning IT leaders into heroes. (Read Full Article…)