Trends Slideshow: IT Agility Embraced By Top-Performing Companies

By Dennis McCafferty  |  Posted 07-14-2010

Selling, General and Administrative (SG&A) costs

Up to one-half of total Selling, General and Administrative (SG&A) costs of an organization can come from IT. Organizations suffer when revenues cannot keep up with these rising expenses.

Selling, General and Administrative (SG&A) costs

Global competitive impact is lacking

North America is forecast to see a mere 2.5 percent in annual GDP growth through 2012, compared to 7.9 percent for the Asia-Pacific region.

Global competitive impact is lacking

What is "IT agility"?

IT agility is the capability of organizations to anticipate and respond to business change and maintain IT costs to within 15 percent of revenue change.

What is "IT agility"?

How do you achieve IT agility?

By exploiting new Service Delivery Models to link business performance with IT-driven initiatives, transforming IT function into a business partner.

How do you achieve IT agility?

Top Performing Companies

Only 20 percent of top-performing organizations rank software infrastructure innovation, such as integration middleware, as a "highly effective" way to meet goals.

Top Performing Companies

Top Performing Companies

80 percent of top-performing organizations say that technical-infrastructure virtualization with storage, servers and other needs is highly effective.

Top Performing Companies

What The Average Performers Say

Only 33 percent of average performing organizations believe that cloud computing and other on-demand infrastructure sourcing is a highly effective way to meet goals.

What The Average Performers Say

What The Top Performers Say

67 percent of top-performing organizations believe that cloud computing/on-demand infrastructure sourcing is highly effective.

What The Top Performers Say

How Else Do Top Performers Contain IT Costs?

1. "On-demand" application-sourcing such as SaaS (cited by 50 percent of top performers) 2. Business-process outsourcing (cited by 50 percent of the top performers).

How Else Do Top Performers Contain IT Costs?

Key Takeaways:

1. Tech-infrastructure virtualization is the most consistently effective way to drive agility. It is two to three times more effective than open-tech standards, app-architecture innovation or software-infrastructure innovation.2. Scalable, pay-for-use systems help IT move from being considered "overhead" to being a valued business player in the organization.3. On-demand tech helps IT stabilize costs/capacity for organizations, while increasing time-to-market and other business goals.

Key Takeaways: