Why CIOs Need to Use Predictive Metrics
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The Key Takeaway: Profits
The top reason to use predictive business performance metrics: profitability will increase by an average of 20% by 2017 for companies that invest in the technology. -
Where Are All the Metrics?
Despite the proven value in predictive metrics, only 31% of IT leaders say their companies have metrics in place to improve their business operations. -
Rely On IT
71% of IT leaders understand what metrics are most critical in determining—and driving—success for their businesses. -
Key Performance Indicators Are Important
Despite the overall value in predictive metrics, just 48% of IT leaders have them in place and tied to strategic key performance indicators. -
The Process Business Keeps Growing
According to Gartner, the business of business process management suites will rise to $2.8 billion this year. -
A Slight Increase in Sales
Although spending on business process management suites will increase this year, it's not that much of an increase. In fact, total spending on the suites $2.6 billion in 2013, an 8.8% difference compared to expected spending in 2014. -
Dashboards Are Important
If business process management suites are to be successful, having a single place to analyze success is required. Still, just 31% of IT leaders say that they have a dashboard in place to actually measure key metrics. -
Look Ahead—and Back
Gartner's report suggests enterprises should look to the future to help predict business success. However, Gartner points out that examining past performance and applying that to current and projected future performance creates a holistic scenario that's more likely to breed success in the enterprise.
Being able to accurately predict the future is a skill that only certain IT professionals possess. Some IT leaders can see upcoming trends, adapt to them before they make their presence known to competitors, and their company benefits as a result. At least, that's the moral of "Predicts 2014: Business Process Reinvention Is Vital to Digital Business Transformation," a new study from Gartner, which analyzes the importance of predictive business performance metrics to improve the overall quality of IT and achieve business success. "To prevail in challenging market conditions, businesses need predictive metrics—also known as 'leading indicators'—rather than just historical metrics (aka 'lagging indicators')," says Gartner Research Analyst Samantha Searle. "Predictive risk metrics are particularly important for mitigating and even preventing the impact of disruptive events on profitability." The Gartner survey was conducted in the last quarter of 2013 and examined how nearly 500 business and IT leaders used performance metrics and how those indicators helped shape the success of their operations. Not surprisingly, the better the performance metrics, the greater the odds a company will succeed in its business.