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Cost Optimization Archive Back to IT & The Economy FUNDAMENTALS STEP 1 STEP 2 STEP 3 STEP 4 Innovation Forces That Will Change the Nature of Information Infrastructure Innovation Forces That Will Change the Nature of Information Infrastructure 5 October 2009 Amid economic challenges and cost-optimization mandates, IT leaders must focus on innovation to spur recovery and long-term growth. Gartner's information infrastructure research agenda cites four major innovation forces that will impact on organizations' ability to leverage information as an asset. Mergers and Acquisitions Create Opportunities and Threats for Insurance IT Departments Mergers and Acquisitions Create Opportunities and Threats for Insurance IT Departments 24 September 2009 Global life and P&C insurance markets are characterized by multiple mergers and acquisitions each year. IT departments in the acquiring and acquired companies must successfully integrate and streamline both departments to more effectively support the combined business. How to Prepare for the Return to Business Growth: Gartner's "Growth" Research Agenda for Clients How to Prepare for the Return to Business Growth: Gartner's "Growth" Research Agenda for Clients 21 September 2009 With an increasing number of modest signs that the current recession will come to an end in the near future, it is now time for clients to decide how they will prepare for the return to business growth. Supply Chain Execution Convergence: Delivering on the End-to-End Process Promise Supply Chain Execution Convergence: Delivering on the End-to-End Process Promise 1 September 2009 Next-echelon supply chain execution value will materialize as functional silos are broken down and business processes span, optimize and synchronize across traditional functional domains. Roundup of BI and Information Management Cost Optimization Research Through 2Q09 Roundup of BI and Information Management Cost Optimization Research Through 2Q09 1 September 2009 This report summarizes Gartner's cost optimization research for business intelligence and information management. Leaders of BI IM initiatives can use this overview to locate relevant reports that can help them reduce costs. Cost Optimization Through Improving Business Processes Cost Optimization Through Improving Business Processes 26 August 2009 CIOs are promoting the message that focusing on improving processes through structured redesign before technology implementation can deliver better business outcomes. Transparency Provides Opportunities and Threats in the 21st Century Transparency Provides Opportunities and Threats in the 21st Century 24 August 2009 This report explores how increased risk and new sources of information are providing opportunities to gain competitive advantage through transparency. However, challenges must be overcome before benefits can be realized. Balancing Growth, Innovation, Cost and Risk in a Turbulent Environment Balancing Growth, Innovation, Cost and Risk in a Turbulent Environment 21 August 2009 As organizations prepare for return to growth, they need a balanced set of capabilities to outperform the competition. But balance is only good for a day, and competitors are always changing the rules. Organizations must continually revisit strategies for managing growth, innovation, cost and risk. CEO Advisory: How to Preserve Business Unit Autonomy, While Centralizing the IT Organization CEO Advisory: How to Preserve Business Unit Autonomy, While Centralizing the IT Organization 19 August 2009 Centralizing IT has demonstrated financial benefits, but doing that while keeping the decentralization of business units that are served can endanger the outcome of IT projects. A recent client example demonstrates a path to success. Align BPM to Strategy by Targeting and Measuring High-Value Processes Align BPM to Strategy by Targeting and Measuring High-Value Processes 7 August 2009 One key to a successful BPM program is to target high-value processes based on the organization's strategy and directly measure any improvements to those processes. A process value chain and a performance management framework will help guide this effort. Introducing Pattern-Based Strategy Introducing Pattern-Based Strategy 7 August 2009 The environment after the recession means business leaders must be more proactive in seeking patterns from conventional and unconventional sources that can positively or negatively impact strategy or operations, and set up a consistent and repeatable response by adjusting business patterns. Case Study: DakotaCare Delivers High Return on Investment With a Cost-Effective BI Program Case Study: DakotaCare Delivers High Return on Investment With a Cost-Effective BI Program 31 July 2009 DakotaCare, a midsize U.S. health insurer, was able to make significant cost savings and find business opportunities with a low-cost business intelligence program. The PMO IT 'Control Tower': Filing a Flight Plan The PMO IT 'Control Tower': Filing a Flight Plan 29 July 2009 A project management office control tower is charged with the safe takeoff and landing of IT projects, but it shares this role with other stakeholders, requiring a shared understanding of roles and responsibilities to reduce turbulence. We examine the process step by step. FEI Study Shows Financial Executive View of IT and Opportunities to Improve Collaboration FEI Study Shows Financial Executive View of IT and Opportunities to Improve Collaboration 21 July 2009 Gartner provides significant insight into how senior financial managers view technology, including CFOs, controllers, directors of business development, and directors of financial systems and processes. CEO Alert: To Slash Business Costs, Complete Your Digital Business Initiatives CEO Alert: To Slash Business Costs, Complete Your Digital Business Initiatives 13 July 2009 Recently, we have noticed examples of smart enterprises exploiting the recession to accelerate digital business initiatives. Finishing what you started can deliver a large completion "bonus." CEO, CFO, CRO and CIO Advisory: Get a Grip on Your Enterprise's Network of Liabilities CEO, CFO, CRO and CIO Advisory: Get a Grip on Your Enterprise's Network of Liabilities 9 July 2009 Regulatory and other pressures following the global financial crisis will likely force enterprises to identify and analyze their liabilities, even as far as the final liability holder. This will create urgent and difficult demands on IT organizations and enterprise information management. Case Study: Holcim Uses Network Optimization to Manage Supply Chain Risk and Optimize Costs Case Study: Holcim Uses Network Optimization to Manage Supply Chain Risk and Optimize Costs 6 July 2009 This research examines the successful use of a strategic network design tool to help manage supply chain risk and cost optimization for cement manufacturer Holcim across its North American operations. CEO Advisory: Recession Impulse Outsourcing Could Damage Your Business CEO Advisory: Recession Impulse Outsourcing Could Damage Your Business 6 July 2009 A 2009 flurry of rushed IT outsourcing plans is a concern. Leaders must consider drastic actions on costs, but this approach can have seriously damaging, unforeseen consequences. CEOs must consider a different strategy. Executive Leadership and Innovation: Critical Issues at the Intersection of Business, Information and Technology Executive Leadership and Innovation: Critical Issues at the Intersection of Business, Information and Technology 2 July 2009 Executive leaders make strategic decisions for the immediate present, the transitional middle term and the different long-term future. Many of those decisions will occur at the intersection of business, information and technology, making insight and implications pivotal. Seven Steps to Customer Process Re-Engineering Seven Steps to Customer Process Re-Engineering 1 July 2009 Customer process re-engineering differs from most business process improvement programs by having improved customer relationships rather than improved efficiency as the primary objective. Customer input is the key to success. The Business Value of Corporate Performance Management The Business Value of Corporate Performance Management 30 June 2009 Interest in CPM continues, despite current economic conditions. Organizations are realizing that CPM offers short-term cost optimization and longer-term business transformation initiatives. This research describes the capabilities and the value of this solution. How Enterprise Architecture Is Instrumental in Enabling the Business to Survive the Three Stages of Economic Downturn How Enterprise Architecture Is Instrumental in Enabling the Business to Survive the Three Stages of Economic Downturn 25 June 2009 The process of enterprise architecture is instrumental in enabling the business to survive the three stages of an economic downturn. In this research, Gartner explores the contributions of best-practice EA teams during the Triage, Doldrums and Recovery stages. Combine Push and Pull Innovation to Achieve IT Innovation Success Combine Push and Pull Innovation to Achieve IT Innovation Success 23 June 2009 Two innovation philosophies impact IT: push innovation, in which emerging technologies are pushed into the business from IT; and pull innovation, in which the business pulls in technology to respond to problems and opportunities. Innovation teams need to understand how to harness both to succeed. Sustainability Will Be Important Even Beyond the Recession Sustainability Will Be Important Even Beyond the Recession 22 June 2009 Sustainability has played its part in business and IT cost-cutting activities in 2008 and 2009. This will continue into 2010, but it will take on more strategic importance, as it begins to influence core strategies. Case Study: How Amcor Used BI to Increase Its Profit Margin Case Study: How Amcor Used BI to Increase Its Profit Margin 19 June 2009 Amcor, an Australian packaging company, implemented a business intelligence application that tracks profit margins down to the invoice level. The new system supported a strategic shift from driving down costs to expanding profit margins. When the Business Asks 'How Can IT Lead BPM?': Surefire Tips for Success When the Business Asks 'How Can IT Lead BPM?': Surefire Tips for Success 18 June 2009 The business often challenges IT's role in business process management. Capitalize on the strengths of IT, and turn BPM into an opportunity to create a better partnership with the business. Supply Chain Risk Management Must Be a Key Requirement for S&OP in Turbulent Times Supply Chain Risk Management Must Be a Key Requirement for S&OP in Turbulent Times 12 June 2009 Financial turmoil is driving increased volatility into operating environments. Leading organizations should adopt supply chain risk management concepts as part of their sales and operations planning processes to help manage major disruptions that can impact their operations. Financial Statement Production: The Final Step in the Last Mile of Finance Financial Statement Production: The Final Step in the Last Mile of Finance 5 June 2009 Many U.S. enterprises have controlled environments for transaction management and financial consolidation, but use spreadsheet processes to create and distribute reports to regulators and publishers. Financial statement production tools with XBRL capabilities can provide the missing control links. Despite Turbulent Economy, Companies Expect to Increase BPM Spending by More Than 10% in 2009 Despite Turbulent Economy, Companies Expect to Increase BPM Spending by More Than 10% in 2009 4 June 2009 Despite economic turbulence, one-third of attendees who participated in Gartner's 2009 BPM Summits in London and San Diego plan to increase business process management spending by more than 10%. Juggling Cost Optimization and Acquisitions Juggling Cost Optimization and Acquisitions 28 May 2009 Having to integrate an acquisition, and, at the same time, optimize costs can be challenging for the CIO without the right financial planning tools. TM Forum Management World 2009 Highlights the Importance of Infrastructure Modernization to Prepare for the Next Wave of Technology Innovation TM Forum Management World 2009 Highlights the Importance of Infrastructure Modernization to Prepare for the Next Wave of Technology Innovation 28 May 2009 As expected, the current economic climate set the scene for the keynotes, summit presentations and vendor strategies presented at this years' TM Forum Management World. This climate forces service providers to emphasize revenue retention, cost savings and customer focus as the main concern. Findings: CIOs Should Capitalize on This Rare Moment of Business Strategy Opportunity Findings: CIOs Should Capitalize on This Rare Moment of Business Strategy Opportunity 27 May 2009 After months of firefighting, CEOs have entered a short period of opportunity for critical strategic thinking and executive debate about their firms' future. The sweet spot will pass by 4Q09, so CIOs must seize the moment. Top Issues Facing Senior Facilities Managers Top Issues Facing Senior Facilities Managers 26 May 2009 This research identifies the top issues that senior facilities and corporate real estate managers will face during the 2010 to 2015 time frame. Spotlight on Innovation in IT Services Spotlight on Innovation in IT Services 22 May 2009 Despite the importance of innovation initiatives in IT services, the success of these initiatives are often left to chance. Our research assists initiative leaders and IT services providers in achieving business objectives and increasing stakeholder confidence during their evaluation process. Q&A: CPM Reduces Operating Expenses in a Troubled Economy Q&A: CPM Reduces Operating Expenses in a Troubled Economy 19 May 2009 IT budgets have come under increasing scrutiny, and many companies have slashed funding for many applications. However, corporate performance management applications can help companies with better financial management in this economy and can provide competitive advantage. Using BPM to Capitalize on New Opportunities in Challenging Times Using BPM to Capitalize on New Opportunities in Challenging Times 18 May 2009 Even in a slow economy, enterprises can capitalize on process change opportunities to achieve high-value business transformations. These business process management case studies show how four organizations did just that. Integrating the Transformation of Business and IT Integrating the Transformation of Business and IT 15 May 2009 This research reveals how winners create new value with strategies that integrate business and technology, and by adapting their IT organizations and skills. Eyeing a Return to Growth, CIOs and Business Leaders Plan for Change in People, Profiles and Practices Eyeing a Return to Growth, CIOs and Business Leaders Plan for Change in People, Profiles and Practices 11 May 2009 Even amid economic turmoil, CIOs, business leaders and HR leaders can see changes on the horizon that will demand a unified approach to the quest for talent, the professional profile, work behaviors and human capital management. Case Study: Effective Metrics Drive Business Results at CitationShares Case Study: Effective Metrics Drive Business Results at CitationShares 23 April 2009 CitationShares, a fractional aircraft ownership company, used business-focused metrics to effect process change and achieve the desired business results. Beyond Survival: Five Companies Use BPM to Thrive in Tough Times Beyond Survival: Five Companies Use BPM to Thrive in Tough Times 5 May 2009 Five case studies show how enterprises are using business process management as a catalyst for business expansion. These examples show how companies increased capacity, improved productivity, reduced risk and achieved faster business results. Five Ways the CEO Can Use EA to Support the Business Five Ways the CEO Can Use EA to Support the Business 4 May 2009 CEOs should use enterprise architecture to understand the effect of today's IT and business decisions on the business of tomorrow. EA captures the relationships of IT and business to bridge the gap from strategy to implementation. The Business Process Cookbook: How to Get Real Business Benefits by Improving Your Business Processes The Business Process Cookbook: How to Get Real Business Benefits by Improving Your Business Processes 4 May 2009 Senior business leaders would like to drive business results through business process improvement, but convincing them to adopt the discipline of business process management can be challenging. We offer this straightforward BPM cookbook to illustrate what it takes and why it will work. What the CFO Needs to Know About the Effect of BPM on Business Performance What the CFO Needs to Know About the Effect of BPM on Business Performance 1 May 2009 The CFO can achieve direct business performance improvement through the adoption of business process management as a sound producer of better results. This is based on examining enterprise business processes as assets to be managed and improved. Case Study: Effective Metrics Drive Business Results at CitationShares Case Study: Effective Metrics Drive Business Results at CitationShares 23 April 2009 CitationShares, a fractional aircraft ownership company, used business-focused metrics to effect process change and achieve the desired business results. Guide for Determining EA Business Value Guide for Determining EA Business Value 23 April 2009 To understand and to ensure that organizations deliver business value from EA, senior executives should guide and push their EA teams to focus on business outcomes, not just on capabilities. Cool Vendors 2009: Changing Models and Changing Times Cool Vendors 2009: Changing Models and Changing Times 22 April 2009 Even during worldwide economic disruption, the ability and need to innovate continues. It is important that companies make their technology decisions based on conservatism and innovation. The best investments will have both of these elements, which is the focus of this year's Cool Vendors report. Keeping the Innovation Dream Alive During the Economic Downturn Keeping the Innovation Dream Alive During the Economic Downturn 7 April 2009 Organizations often question whether they can afford IT services innovation, particularly during economic downturns when cost cutting dominates. But, the real question is whether they can afford not to innovate. How to Address CFO Concerns in the BPM Business Case How to Address CFO Concerns in the BPM Business Case 1 April 2009 The current economic roller coaster will require business process management professionals to think like a CFO when justifying projects. This research lays out some typical questions the CFO will ask and offers guidelines for giving compelling answers. Case Study: Star Tribune Uses SaaS to Boost Traffic on Its Web Site Case Study: Star Tribune Uses SaaS to Boost Traffic on Its Web Site 30 March 2009 News provider Star Tribune needed to revise its Web content management strategy when new owners took over. This Case Study shows how its use of a software as a service offering increased visits to its Web site by almost 100% in one year. IT Performance Management: Watch Out for Reckless Obedience IT Performance Management: Watch Out for Reckless Obedience 27 March 2009 Reckless obedience to performance metrics can create long-term problems that were once low-probability risks or create new and unforeseen risks for IT leaders. IT leaders should revisit their performance metrics to ensure alignment with the current economic situation. CEO Advisory: Transformation Is 'Out,' Restructuring Is 'In' CEO Advisory: Transformation Is 'Out,' Restructuring Is 'In' 27 March 2009 CEOs and CIOs must collaborate to instill a different kind of strategic business change management discipline, in the face of the most severe recession of modern times. Uncover Breakthrough Cost-Optimization Opportunities Using the 'Four Heads' Technique Uncover Breakthrough Cost-Optimization Opportunities Using the 'Four Heads' Technique 26 March 2009 After identifying obvious cost-saving techniques (such as delaying new purchases and upgrades, canceling projects, and letting go of contractors), many IT organizations get stuck. Use a brainstorming technique to uncover deep cost-optimization opportunities. Commoditization: The Catalyst, Not the Enemy, of Innovation Commoditization: The Catalyst, Not the Enemy, of Innovation 26 March 2009 Forces of commoditization in IT, evident over recent years, have produced the conditions from which a new phase of innovation is currently emerging. Cost Cutting in E-Commerce, 2009 Cost Cutting in E-Commerce, 2009 26 March 2009 IT organizations responsible for e-commerce are challenged to improve online customer experiences to make up for closed locations and lost sales personnel, while cutting IT expenditures by 5% to 25%. Careful attention to e-commerce can save money, boost sales and improve customer experiences. Innovate or Incubate? Innovate or Incubate? 26 March 2009 The consensus calls for using incremental approaches to major IT changes. The radical changes needed today may require different strategies, however. Gartner Business Executive Survey, 2009 Gartner Business Executive Survey, 2009 25 March 2009 This survey of large enterprise CEOs, CFOs and COOs suggests that they don't expect to see respite from the recession this year, but they will protect IT from the worst of it. Case Study: The Value of BPM Seen in Significant Cost Savings Realized by Industrial Equipment Manufacturer Case Study: The Value of BPM Seen in Significant Cost Savings Realized by Industrial Equipment Manufacturer 16 March 2009 By applying a disciplined approach, an industrial equipment manufacturer drove down the costs associated with engineering change notices, reducing the average cost of changes from $2,000 per unit to $50 per unit. Using Profitability Modeling and Optimization to Understand the Drivers of Profitability Using Profitability Modeling and Optimization to Understand the Drivers of Profitability 16 March 2009 Most organizations are challenged to understand profitability at anything other than an aggregate corporate level. Profitability modeling and optimization applications provide a sophisticated and powerful environment that supports a deep understanding of the drivers of profitability. It's a Matter of Survival: Use BPM to Drive Out Costs It's a Matter of Survival: Use BPM to Drive Out Costs 12 March 2009 For struggling companies, business process management is a lifeline that helps them survive by reducing and avoiding costs in this volatile and turbulent economy. The Business Impact of Social Computing on CRM The Business Impact of Social Computing on CRM 4 February 2009 Social applications are as varied as the online customer interactions they support. Companies can support CRM objectives by understanding how these social applications fit into the online buying cycle. How Governments Are Addressing the IT Consolidation Conundrum How Governments Are Addressing the IT Consolidation Conundrum 4 February 2009 Amalgamation, shared services and centralization initiatives continue to proliferate at all levels of government worldwide. During 2008, Gartner analyzed a variety of case studies to understand the practical and theoretical aspects of such consolidation programs. Forget Technology, People Drive Innovation Forget Technology, People Drive Innovation 3 February 2009 In the struggle to deliver innovation inside the organization, it is critical to understand that people, rather than technology, are the real drivers. Focus on the "why" of innovation, rather than the "what." Predicts 2009: Consolidation, 'Cloud' and Clarity of Innovation for Business Process Services Predicts 2009: Consolidation, 'Cloud' and Clarity of Innovation for Business Process Services 30 January 2009 Business process services are evolving as companies rethink sourcing decisions for business functions against a backdrop of radically altered economic conditions. Gartner presents advice for buyers of BPO services through four predictions and looks back at two of our previous predictions. Cut Waste, Not Marketing Programs, Using MRM Cut Waste, Not Marketing Programs, Using MRM 30 January 2009 Marketing budgets are under increased scrutiny. Invest in IT to support marketing resource management and to cut waste from marketing, so you won't have to cut valuable programs that can help reach customers in this tough economy. Predicts 2009: How ERP and the Supply Chain Are Adapting to a Changing Economy Predicts 2009: How ERP and the Supply Chain Are Adapting to a Changing Economy 28 January 2009 Through 2014, users in the ERP and supply chain management markets will be affected by the modernization of technology, the maturation of application functionality, and user frustration with vendor maintenance and lock-in costs. They will also question the value of business applications. State of California to Shut Down Offices Two Days a Month: What Does It Mean for IT? State of California to Shut Down Offices Two Days a Month: What Does It Mean for IT? 28 January 2009 California Governor Arnold Schwarzenegger has announced his intention to shut down public offices twice a month. This action has implications for government IT systems and staff. Innovation and Idea Management: Make These Decisions First Innovation and Idea Management: Make These Decisions First 26 January 2009 Organizations believe that great ideas are hidden within their people and processes; innovation programs are launched on these beliefs. Great ideas are there for the taking, but think before you leap -- a few big decisions are critical to success. Rethinking Risk: Lessons Learned From the Credit Crisis Rethinking Risk: Lessons Learned From the Credit Crisis 22 January 2009 As today's credit crises shows, effective risk management can be easily trumped by the drive to maximize revenue in the absence of transparent policy. Too little attention has been paid to the impact of operational activities and processes, and the risks associated with those exposures. 15 Options to Finance Government IT 15 Options to Finance Government IT 14 January 2009 The global economic crisis will affect government IT budgets. This research analyzes alternative models for governments to consider for financing IT spending. Process-Centric Business Application Life Cycle Management Process-Centric Business Application Life Cycle Management 17 December 2008 Transforming the business application life cycle from an application-oriented to a process-oriented perspective will help enterprises align applications with business success. IT Cost Optimization: How to Anticipate Your Corporate Response to Economic Downturn IT Cost Optimization: How to Anticipate Your Corporate Response to Economic Downturn 14 November 2008 Recent economic turmoil has left many corporate business plans in disarray. While executive teams at headquarters go into a closed huddle, here's a ready method to help you anticipate the business direction and start preparing your IT cost response for 2009. PMO Best Practice: Maintaining the Portfolio While Dealing With Project Slips and Changing Priorities PMO Best Practice: Maintaining the Portfolio While Dealing With Project Slips and Changing Priorities 3 November 2008 No matter how good an organization is at creating a portfolio, most project management offices struggle to maintain the portfolio as soon as the changes start, which generally is hours or days after the portfolio is finalized. Cost Cutting: CIOs Can Exploit Asymmetries Between Regions and Industries to Find New Opportunities Cost Cutting: CIOs Can Exploit Asymmetries Between Regions and Industries to Find New Opportunities 10 October 2008 Enterprises and markets are increasingly global; however, economic slowdowns usually have different characteristics in different parts of the world and in different economic sectors. Because this brings threats as well as opportunities, IT leaders must analyze those differences and act accordingly. Toolkit: Return on Investment Calculator Toolkit: Return on Investment Calculator 27 August 2008 CMany organizations must commercially justify proposed new solutions. An ROI calculator can help to define a justification by estimating the ongoing as-is solution's costs, comparing this with any proposed spending and defining a series of tangible benefits.	Stay Connected Gartner Analysts on Twitter Stay Up To Date 28th Annual Data Center Conference 1-4 December 2009 Las Vegas, NV 22nd Annual Application Architecture, Development & Integration Summit 7-9 December 2009 Las Vegas, NV Events Calendar Set up Email Alerts IT and the Economy Add + Reducing or Controlling Costs Add + Budget Management Add + IT Spending Add + Optimize IT Investments Add +
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