This research continues an examination of CEO concerns and priorities since our first report in 2003. The outlook is for a concentration on customers and revenue after a long focus on costs in 2009. CIOs must prepare for the shift that this represents to their budgets and project portfolios.
The increased need to bring process control information from operational systems into business-oriented IT systems will change the management and governance of these realms during the next few years.
Most companies are losing money due to poor lead management practices. Customer acquisitions and improving cross-sell/upsell opportunities are high priorities for CRM executives, but continued inefficiencies in lead management will make achieving them a difficult challenge for most B2B companies.
Governments around the world amalgamate, share services and merge to save money, but they also continue to create new departments and break down agencies to foster new policies. This study analyzes common challenges these reorganizations present to IT executives.
Microchip Technology, a leading microcontroller vendor, improved price consistency and deal quality by increasing worldwide visibility into selling and pricing practices. Superior oversight of sales opportunities and price execution helped reduce price arbitrage, price erosion and revenue leakage.
Every several years, major cost-cutting campaigns are expected and necessary. Cutting too little or too much can lead to unintended business consequences. Greater business opportunities lie in a more forward-looking, strategic approach to managing (and transforming) the enterprise cost structure.
Innovation has experienced a resurgence in recent years as organizations cope with economic uncertainty and changing business requirements. This research details five myths that innovators must heed.
After it is created, the shared-service center will generally concentrate on improving operations, limiting it to the responsibilities initially assigned to it. A marketing approach is a strategic imperative to help the SSC identify, develop and deliver services that add business value.
The consumerization of IT has been a steadily growing macrotrend within technology for over a decade. January 2010 events showed it has crossed a threshold to become a broader business force.
Innovation is often an issue in outsourcing relationships. Demand-side expectations do not match supply-side requirements. This research describes how innovation can be effectively enabled in outsourcing through the outsourcing contract and relationship.
We examine the different types of business process management technologies, where they fit in the business process improvement cycle, and what the typical usage patterns are for each.
This overview provides a high-level description of the Business Process Management Program Key Initiative. IT leaders can use this guide to understand what they need to do to establish and manage a BPM program.
This overview provides a high-level description of the BPM Technology and Tools Key Initiative. IT leaders can use this guide to understand what they need to do to prepare for this initiative.
This overview provides a high-level description of the Supply Chain Management Key Initiative. IT leaders should use this guide to establish an SCM strategy focused on enhancing the operational efficiency and effectiveness of their companies' supply chains.
Using e-forms to improve business processes requires understanding the costs, risks, challenges and benefits, particularly the customer interaction benefits. Success with e-forms often entails changing business processes.
The Palo Alto Research Center leverages original research and a collaborative, multidisciplinary approach to develop new technologies, manufacturing processes, and services with its clients. This research outlines three projects that exemplify the breadth of PARC's research.
Companies must measure supply chain process performance with KPIs and ensure behavior aligns with goals. But KPIs must be accompanied by a relationship map, so firms can see cause-and-effect behavior across processes and better evaluate impacts on the key supply chain outcomes of cost and service.
Manufacturing CIOs are poised to make some of the same mistakes that their engineering brethren made a couple of decades ago: the simplistic application of automation in an attempt to displace the human element. They should carefully consider their strategies and deployment plans.
One of the fundamental activities in a lean organization is the process known as "value stream mapping." Its purpose is to clearly identify how value is added to any activity. For IT organizations, this sometimes appears difficult, but it need not be.
Well-designed innovation teams are catalysts. They unleash creativity and increase the rate and quality of innovation throughout the business and its ecosystem. Innovation catalyst teams provide expert advice and structural support to innovators from the center to the edges of the organization.
The nature of digital printing has forever changed. Communications that once took place only on paper have moved to other media -- and they are not coming back. As a result, the industry continues to consolidate and focus on services in an attempt to resurrect profit margins.
Euroclear Bank set out to determine whether standard business continuity management practices could be applied to a financial crisis. Two real-world crises proved they could, and the experience offers valuable lessons for other enterprises.
In 2009, industries faced recession. Although 2010 appears more positive, most industries must tackle the repercussions that remain. Lack of innovation, lost strategic positioning opportunities and growing consumer power will challenge companies as they attempt to embrace the so-called "new normal."
This research describes how Queensland Rail's National Coal business worked with HCL Axon to redesign its customer processes with clear business ownership and implemented technology to support the people and processes.
ICICI Bank's 90-day business intelligence projects resulted in annual savings of $50 million. ICICI's example holds valuable lessons for enterprises that have faced the challenges of explosive growth.
Many business process management efforts focus on activities that can be easily modeled and standardized, but unstructured processes are critical as well. We define what unstructured processes are and explain why they are becoming increasingly critical to business process improvement efforts.
Early findings from a survey of large U.S. and U.K. company CEOs and senior business executives suggest that customer, competitive advantage and talent priorities are displacing cost cutting. Revenue growth is returning to the foreground, but business activity volume predictions are muted.
The Four Levels of Cost Optimization is a framework useful as an organizing principle to track cost-optimization programs. We look at how those initiatives can be applied to investments in UC to help build a business case, and which benefits organizations should be communicating to the business.
After the impact of the global recession, automotive companies must recover and prepare for a new reality that introduces alternative powertrain technologies, achieves mobility optimization, emphasizes service innovation and defines new business models.
The global recession left leaders in government, industry, academia and nonprofits questioning why they had not predicted such a dramatic downfall. Gartner's global scenarios are a way to plan for alternative futures and prepare your organization to execute in the event of an unforeseen crisis.
Performance management as a concept and a category of analytic applications will play a key role in supporting the return to growth. CIOs must understand the importance of performance management to ensure that they can support increasing user demands in this area.
Performance management is a high priority for business executives and managers. Gartner has defined the underlying concepts and drivers of performance management and identified the foundational technologies required for performance management success.
In 2009, Gartner conducted in-depth interviews with 50 business unit executives from around the world, each with P&L accountability of at least $20 million in companies having total revenue of $100 million to $10 billion. This research emphasizes the correlation with business process improvement.
Performance measurement best practices should be applied to the business processes that have a high relative impact on enterprise performance results. The focus should be on metrics that lead to action.
We continue our Return to Growth series of Gartner Fellow interviews with this discussion with UPS CFO Kurt Kuehn. From his extraordinarily unique perspective, Kuehn offers his views on when the business climate will improve.
Interest in price optimization and management software for B2B is mounting as enterprises recognize the benefits of improved pricing practices for B2B sales processes. Enterprises are attracted by opportunities to increase margin and revenue growth, governance and operational efficiencies.
Current economic times have emphasized an already strong trend of uncertainty for higher education institutions. For CIOs with vision, uncertainty presents the opportunity to create a level of agility that will meet future trends in education.
As IT and operational technology converge, the essential business outcome is management of an integrated framework of business processes, information and technology. It is changing CIO roles in many industries. We examine those changes, how they will develop and what CIOs should do about them.
The Gartner 2009 Business Pulse survey probes the priorities and plans of business unit presidents, executives and directors; many are on the hot seat for top-line growth during the next year. Growth strategies and information quality are top of mind.
Gartner surveys show that high-value technologies include broad collaboration tools, such as enterprise instant messaging and desktop videoconferencing, as well as less-adopted, niche technologies, such as 3D printers, mobile robots and radio frequency identification.
The U.K. prime minister recently announced plans for massive privatization of government assets, and speculations that the IT function might be included were revamped. Gartner argues that, without effective governance and a sourcing strategy, this will be very hard to do.
At every interaction, the customer experience affects future company revenue and profit. Proper channel management ensures that these customer experiences across channels reinforce the organization's basic brand value proposition and differentiate its business.
We recently interviewed IHS Chief Economist Dr. Nariman Behravesh to discuss his organization's forecasts on when business growth will return. This information is just one of many elements that we will use to formulate our views on the near-term future of IT spending.
A cable provider restructured its field service operations to improve customer satisfaction while dramatically lowering costs by deploying a predictive workforce management system, and a customer communication and alert system in a cloud-computing model.
In 2009, Gartner predicted that more than 75% of marketing budgets worldwide would be cut by at least 20%. Despite an improving economy, budget levels are unlikely to rebound in 2010. Chief marketing officer skills must change to transform marketing and restore marketing budgets.
Business leaders, in the belief that the worst of the "great recession" has past, hope for a secure return to growth in 2010-2011. We see three scenarios CIOs should consider with their CEOs.
In the past decade, a series of diverse, yet interconnected trends have irrevocably changed the business and social environment, creating what some observers term the "new normal." Business and IT leaders must prepare for an era of "technology as air," personal involvement and external influences.
Collectives (aggregations of people bound by a common action or opinion and outside the control of the enterprise) affect the success of every enterprise. This research explores what we mean by the collective and how business executives should incorporate it in their planning.
The Gartner 2009 Business Pulse Survey reveals strategic objectives and priorities of business unit heads and gives CIOs some clues about how to help businesses prepare for a return to growth.
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.
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.
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.
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.
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.
CIOs are promoting the message that focusing on improving processes through structured redesign before technology implementation can deliver better business outcomes.
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.
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.
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.
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.
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.
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.
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.
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.
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."
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.
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.
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 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.
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.
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.
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.
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 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.
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.
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.
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.
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 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%.
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.
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.
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.
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.
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.
This research reveals how winners create new value with strategies that integrate business and technology, and by adapting their IT organizations and skills.
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.
CitationShares, a fractional aircraft ownership company, used business-focused metrics to effect process change and achieve the desired business results.
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.
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.
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.
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.
CitationShares, a fractional aircraft ownership company, used business-focused metrics to effect process change and achieve the desired business results.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
For struggling companies, business process management is a lifeline that helps them survive by reducing and avoiding costs in this volatile and turbulent economy.
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.
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.
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."
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.
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.
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.
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.
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.
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.
The global economic crisis will affect government IT budgets. This research analyzes alternative models for governments to consider for financing IT spending.
Transforming the business application life cycle from an application-oriented to a process-oriented perspective will help enterprises align applications with business success.
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.
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.
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.
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.