Gartner Research

IT Economic Gravity to Support Big Change and Digital Business Transformation

Published: 30 September 2014

ID: G00263023

Analyst(s): Kurt Potter

Summary

Digital business trends will refocus the attention of CIOs to outcome-based action in the face of market uncertainty, strategic ambiguity and career risk. To guide CIOs, this research explores 16 economic and financial phenomena that will have an impact on their enterprises.

Table Of Contents

Analysis

  • The Impact of Big Change on IT Economic Gravity
  • High Business Complexity Drives Higher IT Complexity, Which Does Not Allow for Effective Cost Optimization
  • Highly Customized IT-Enabled Value Chains Are Not Sustainable
  • All IT Assets, Resources and Services Are Considered as Commodities at Higher Levels in the Enterprise Value Chain
  • Big Data and Information Are Commodities That Require Differentiation via Digital Business to Create Value
  • To Be Successful With Digital Business Journeys, CIOs Will Have to Propose a Goal of Revenue Equaling 50% of IT Spending Levels
  • CIOs Focused Only on Operational Excellence Become Unnecessary Intermediaries in Digital Business Journeys
  • Obsession With IT Operational Excellence and Perfection Crowds Out Digital Business Investment
  • Extreme Use and Consumption of Virtualization Made IT Organizations and Enterprises Fat
  • The Impression of Future Scarcity Creates 100% More Demand for IT Services
  • IT Transparency Is the Forerunner and Enabler of Estimation and Pricing of Digital Business Services
  • Benchmarking IT Services Without a Reciprocal Benchmarking of Business Processes, Products and Services Leads to Value Destruction of IT Investments
  • IT Organizations That Run IT Like a Business Will Fail If They Try to Be a Monopoly for 100% of Their Internal Users' IT Needs
  • IT Organizations Have Oversold the Business Value of IT
  • Misclassified IT Transformation Programs Will Be Reclassified as Run Investments and Struggle to Realize Benefits
  • Many Failed Change Projects Will Be Reclassified as Run Projects to Preserve the Functional Benefits
  • True Digital Business Transformation Budgets Will Be Based on an Allocation of the IT or Corporate Capital Budget and Not a Traditional Business Case Process
  • Use and Misuse of These Economic Phenomena

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