The pressure to remain competitive and invest in digital initiatives is increasing across industries. However, digital initiatives embed information and technology in products and services and are, thus, joint IT-business endeavors. Cost optimization in the age of digital business means looking beyond IT and including business costs in the initiative. It also means that simply cutting the IT budget and taking an approach of waiting until the economic environment is more favorable to make digital investments are flawed approaches to remaining competitive.
Gartner believes that organizations — particularly those in heavily impacted industries (that is, those being disrupted by digital business or under severe economic pressure) — can no longer avoid looking more holistically at cost optimization. IT cost cutting is not a business growth strategy, particularly in the age of digital business.