Making do can make enterprises more IT savvy

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The current, short-term focus on reduced IT budgets and spending during the economic downturn has overshadowed the value out of getting the most from existing IT investments.

That’s according to a new report published today by analysts at the Butler Group, who claim a longer-term emphasis on the strategic management of existing, as well as new IT investments, should be an enterprise priority right now.

Mark Blowers, Butler Group enterprise architectures practice director, and co-author of the study said it was not a question of how much is invested in computer systems but the effectiveness of the spending.

“Most organisations have very little visibility into IT performance,” he said. “This needs to change – due in no small part to the growing compliance and regulatory pressures, which entail IT management having the wherewithal to prove the department is being run effectively and offering value.”

Arguing that the effectiveness of IT investments was a very significant factor in the ability of IT to provide value, he urged organisations to boost their governance and management mechanisms to gain transparency and accountability throughout the lifecycle of a system.

A recent National Computing Centre (NCC) survey found UK managers were quick to circumvent policies that strengthen governance.

Blowers explained: “Organisations must establish a clear IT service model against which costs can be allocated and performance monitored, including establishing a baseline for both these attributes. Most importantly, this measurement should then be linked to business activity, which enables rational decisions on IT cost management to be taken and understood in the context of business operations and objectives.”

The report also found that, although organisations will need to be selective and initially opt for those initiatives that will achieve the best returns in the shortest time period, they should still be viewed from a longer-term, strategic perspective.

Indeed, here it said a good portfolio management solution could helps to select the right blend and balance of IT investment and match it with new and existing resources for maximum value.

“Organisations are no longer willing to make speculative investments in information systems without a clear understanding of the costs and measurement of the benefits. Today, a new air of realism demands that cost efficiencies must be derived from existing systems, that costs must be firmly controlled, and that new projects must add value,” concluded Blowers.

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