World-Class IT Organizations Deliver Greater ROI

 
 
By Dennis McCafferty  |  Posted 08-03-2017 Email
 
 
 
 
 
 
 
 
 
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    World-Class IT Organizations Deliver Greater ROI
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    World-Class IT Organizations Deliver Greater ROI

    World-class IT organizations are significantly boosting the bottom-line of their companies and are helping them move forward in digital transformation efforts.
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    Cost Cuts
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    Cost Cuts

    A typical company with $10 billion in revenue that is "world class" in IT operations will achieve up to $41 million in annual savings compared to its peers.
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    Affordable Operations
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    Affordable Operations

    Digital transformation initiatives can lower the transaction process costs of finance, procurement, and other general and administrative functions by 40%.
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    Higher Priority
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    Higher Priority

    World-class IT organizations allocate 44% of their tech spend per user on actual technology (not related expenses), while their peers allocate only 39% of this spending on tech.
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    Onerous Effort
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    Onerous Effort

    Companies with world-class IT departments will allocate 40% of their tech spend per user on labor, while their peers will allocate 44%.
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    Timely Delivery
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    Timely Delivery

    World-class IT organizations complete 90% of their infrastructure projects on time, while their peers complete only 80% of these projects on time.
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    Prompt Professionals
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    Prompt Professionals

    World-class IT departments complete 88% of their app development and implementation projects on time, but their peers complete just 79% of these projects on time.
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    Bottom-Line Performance
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    Bottom-Line Performance

    57% of projects completed by world-class IT organizations meet ROI expectations, compared to just 24% of projects completed by their peers.
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    Satisfied Expectations
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    Satisfied Expectations

    90% of projects completed by world-class IT organizations deliver their anticipated benefits, while only 80% of those completed by their peers do.
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    Shift Mode
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    Shift Mode

    94% of global executives believe that digital technology will change the way business services will be delivered over the next three to five years.
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    Disrupted Landscape
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    Disrupted Landscape

    92% of the respondents said digital technology will disrupt their industry and their competitive landscape.
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    Talent Transformation
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    Talent Transformation

    88% of the executives said digital technology will change the talent and leadership needs of IT.
 

World-class IT organizations are significantly boosting the bottom-line performance of their companies, according to recent research from the Hackett Group. The accompanying report, "Beyond World-Class Service: IT's Digital Capability Imperative," defines "world class" as technology departments that excel at more than 100 metrics, including those related to efficiency, effectiveness, automated functions and project completion rates. For example, there's a considerable gap between the percent of completed projects that meet ROI expectations in world-class organizations and in their peers. World-class IT organizations also fare better at delivering anticipated benefits on initiatives, while completing projects on time. These and other factors will greatly influence which businesses move forward successfully in their digital transformation efforts and which get left behind. "Like other business functions that provide services to the rest of the enterprise (such as finance, HR and procurement), IT earns its credibility by maximizing the efficiency and effectiveness of its service delivery," according to the report. "Even in the most progressive digital-native enterprises, the fundamental expectation of IT is a high level of service delivery performance. Failing that, any aspirations to be a digital capability driver and transformation partner become remote." The research is based on an analysis of benchmarks, performance studies and other data from hundreds of large global companies. Additional data was taken from the Hackett Group's "IT Key Issues" survey, in which 180 global executives took part.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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