Change is good. But should it always add to costs?
For instance, given the massive dependence enterprises have on data to determine their digital strategies for products, sourcing, capacity planning, pricing, marketing and customer support, how should they determine budgets for data management and compute power required for real time analytics? That is a difficult question to answer because of the variable involved. Anything—from markets to competition and regulation—could bend the forecast, wasting the investments made based on the forecast.
Does the fact that the business environment is dynamic have to mean a constant addition to, or waste of, IT infrastructure investments? We tried to answer this question, along with several other pressing questions that hound IT infrastructure professionals. The result is one of the most extensive, first-of-its-kind reports on the subject called State of IT Infrastructure 2020 (you can download a free copy now).
Spending an increasing amount on operational IT is no guarantee for growth or leadership. What matters is how these costs are managed— through platforming, outsourcing, automation, cloud enablement, etc., without compromising on operations, employee experience, partner convenience and customer satisfaction.
What are your peers in Banking, IT Services, Insurance, Industrial and Process Manufacturing, Utilities, Oil & Gas, Communications, Securities and Capital markets, Automotive, CPG, etc., putting their money on? Our State of IT Infrastructure 2020 survey showed that between Run and Change, 43% of enterprise IT budgets were rooting for Change. This means budgets for Run could be under pressure. The implication is that there is a growing need to optimize cost for IT infrastructure management using a variety of options.
Based on our broader experience in the industry, we are seeing enterprises adopting a smart spend approach, which is about using your budgets wisely by optimizing the current operating models and transforming it to drive IT-enabled business value (Refer infographic - Smart spend – Transform, and not just cost reduction). This smart spend approach also helps businesses transform and not just reduce cost.