IT Governance and Executive Strategies
True story: A VSM executive recently renewed an agreement for a legacy on-premise human capital management (HCM) solution. In return for a five-year commitment, the vendor reduced the maintenance fee by 25% annually. Based on IDC's benchmark data, the price was, indeed, best in class. But several months later, another executive in the company’s Digital Transformation Office requested help on a transformation strategy, seeking to replace the company’s outdated on-premise HCM system with a SaaS-based solution. Should the contract renewal be classified as savings or a costly mistake?
|By 2019, nearly 75% of IT spend will be for 3rd Platform technologies (IDC FutureScape: Worldwide IT Industry 2017 Predictions, US41883016, Nov 2016). However, a surprising number of enterprises lack the vision for VSM necessary to support sourcing these technologies. To make matters worse, over 40% struggle with inadequate staffing and bureaucratic processes preventing VSM operations from keeping up with the business units they support (IDC MaturityScape Benchmark: Vendor Sourcing and…|
Intelligent ERP applications are being evaluated and implemented by enterprises across all industries. Nevertheless, legacy ERP applications continue to consume a significant quantity of resources and money just to keep operations running.
According to Aaron Polikaitis, VP for IDC's IT Executive Programs Vendor Sourcing and Management practice, "Intelligent ERP will eventually replace legacy ERP solutions. Enterprises with coordinated transitions strategies will be in a position to make the shift in a fiscally responsible manner. Those that do not, will end up spending far more and managing a long business time to value.”
ERP systems have a scary reputation. Over the years many enterprises have initiated massive ERP implementations and upgrades, only to find themselves behind schedule and over-budget. Some have been abandoned mid-project or even ended in litigation. As a result, CIOs must carefully evaluate requests to make major changes to functioning, albeit woefully outdated, ERP systems.
Despite the accounts of failed implementations, the industry is growing at a record pace. Furthermore, legacy ERP…
The way to measure the effectiveness of IT operations has changed. To help IT and business leaders to get the most out of their IT operations, IDC addresses their essential about IT measurement in the age of digital transformation.
What are thenew rules for IT measurementthat have been set in the new era of digital transformation?
As IT brokers, integrates and manages technology innovators such as robotics, cognitive computing, 3D printing, NextGen security and Internet-of-Things, measuring effectiveness is a new game with new guidelines. Measure these innovative activities improperly and expected deliverables are significantly jeopardized.
How are IT metrics used within thriving IT organizations to weigh the…
There’s one thing upon which IT executives and LOB leaders agree: the CIO plays a critical role in innovation. In recent IDC surveys of IT executives and LOB executives, 45% of LOB executives designated the CIO as an innovation leader, while 41% of IT executives see the CIO as an innovation leader.
How do you as an executive approach innovation? Your company probably innovates in a number of different ways – and your approaches are most likely linked to the results you expect – your business and IT goals. Which is another way of saying that innovation is not a one-size-fits-all term. There are different kinds depending on factors like the nature of your business, competitive pressures to change, how your ecosystem is using digital technologies, and whether your leadership is visionary or…
The Search for Agile Without Sacrifice
In the Part 3 of this blog, we focused on the essential area of effectively allocating different skillsets of the IT organization to further your innovation initiatives. Of course, another key focus is how the IT organization operates.
As more organizations work through digital transformation, they are finding that many existing development practices and processes do not necessarily work in this new phase of computing. This is leading many executives to embrace the idea of Agile development…
Last week Gartner acquired the Corporate Executive Board (CEB). CEB, respected for its peer to peer advice, joins the Gartner machine - but at what cost to technology executives?
Digital transformation is the biggest sea change we will see in our careers. As it plays out, new business models will emerge, industries will be altered, and economies will be reshaped. With organizations spending billions of dollars in technology investments over the next several years, the stakes for getting it…
Digital Transformation (DX) and the Talent Revolution
After identifying the more strategic role the CIO must take on to face digital disruption of the IT organization in Part 2 of this series, there is the question of utilizing the right talent resources to effectively continue the digital transformation journey.
The DX transition requires specialized talent that isn't always readily available or accessible within the existing workforce, or within the allocation of the existing workforce. For this reason, it is urgent for CIOs to look at their…
The Changing Role of IT Leadership | Part 2: Adapting the IT Organization & Leadership Structure for Digital Transformation (DX)
41% of CIOs prefer to focus on operations rather than face digital disruption: This was the hot button for the previous blog post, The Changing Role of IT Leadership: Part 1 – Leading IT Through Digital Transformation (DX). Our data also shows that the role of the CIO is changing from a support function to a strategic function: 62% of CIOs report to the CEO.
Two questions remain:
- To what degree and in what areas can the CIO serve as an innovation and business leader?
- How should an…
IDC predicts that worldwide spending on digital transformation technologies will expand at a compound annual growth rate (CAGR) of 16.8% through 2019 to more than $2.1 trillion. With this growth, companies, regardless of country or industry, are being disrupted by DX and must design a path forward.
Despite this information, data from IDC's CIO Sentiment Survey suggest that most CIOs are focusing more on continuing operations than making their mark to cut through the digital disruption -- 41% of CIOs prefer to focus on operations rather than face digital disruption. These CIOs are focusing on what they know best and what is low risk, rather than taking on critical challenges such as siloed organizations, resistance to change, or ineffectual corporate cultures to aim for high reward…
In 2017, SMB IT spending will top $20 billion over 2016, with both traditional 2nd Platform (PC, server, network) and 3rd Platform (social, mobile, cloud, big data) spending continuing to grow. Almost universally though, the preferred coordination of on-premise and cloud resources will be shifting to solutions with a cloud emphasis. And what has been the relatively fragmented and improvisational nature of SMB IT spending will begin to echo the coordinated and managed approaches seen among…
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