10 Root Causes For Diseased IT Economics

[Former Member]

For years we are reducing TCO and increasing IT enabled business value. And in fact, there are so manifold measures, best practices, methods, tools, technologies and solutions to improve IT effeciency as well as to deliver more value to the business available. And most companies and IT departments leverage these to a large extent.

So, my question is: Why does the "Poor IT Economics Disease" always come back?

Here are 10 root causes I found:

1. High business dynamics combined with limited flexibility of IT resources and cost

2. Fast, anorganic growth (i.e. mergers & acquisitions)

3. Insufficient understanding between business and IT

4. Lack of an IT strategy and missing architecture management

5. Bad prioritization and selection of (IT) projects

6. High degree of individualization (regarding business processes and IT solutions)

7. Bad project execution

8. Quick & Dirty (Interims-) solutions - which remain

9. Decentral organizational structures without central governance combined with political decisions

10. Lack of competencies/ skills (e.g. to manage exteral provider, to manage new technologies)

My advice:

• Recognize pattern and identify root causes for the "Poor IT Economics Disease" in your IT organization (beyond solving incidents and problems)
• Analyze your (IT) project portfolio: Which projects/ actions cure symptoms of the disease? Which projects/ actions solve or manage the root cause?
• Build up a strategic masterplan which helps to manage root causes you cannot influence and eliminate root causes you can control
• Leverage Design Thinking to uncover and solve rood causes
  Check this interesting blog: Inefficiencies in your IT Operations? SAP can help you with Design Thinking!

Your view matters: What is your perspective regarding these root causes? What other root causes you see?

I would like to know your thoughts.

More information:
Check my blog about TCO Benchmarking: Control your IT Cost & identify Improvement Opportunities with TCO Benchmarking;
Follow me on Twitter @SAPSpotlight or connect to LinkedIn