John Mahoney

1
Synchronizing IT and Enterprise Strategy

• John Mahoney
• Chief of Research for IT Services and Management
• Gartner

These materials can be reproduced only with
Gartners official approval. Such approvals may
be requested via e-mail -- quote.requests_at_gartner
.com.
2
Challenge the Perception That IT Spending
Wasted Money!
200 billion worth of failed projects annually
No correlation between business performance and
the ratio of IT spending. Those enterprises with
the highest spending seem to have the worst
financial results!
No discernable macro returns from the trillions
of dollars invested in IT
3
What Drivers? Accelerating, Interacting
Complexity in Enterprise Environment
extended relationships need stronger trust
complexity of discontinuity
regional, national and supra-national market
changes
strategic sourcing becomes partnership
complexity of accelerating change
4
What Drivers? The Changing Focusof Enterprise
Leadership
relationships, flexibility, business value,
architecture

• Vision
• People and Teams
• Partnerships
• Business Value
• Agility in Complexity

RTE
2008
IT leadership focus
2003
technology
enterprise leadership focus
internal efficiency and control
partnerships, agility, environment, intellectual
capital
Partnership means a common goal, each party with
a distinctive competence, multilevel
communication and mutual commitments.
5
Five Mistakes Enterprises Will Continueto Make
During the Next Three Years
Overfocus on ROI to the detriment of otherkey
determinants
Revenue
Rely on traditional PM techniques that focus on
delivering vs. input measures (time and budget)
instead of adopting value management techniques
Concentrate on upfront analysis of IT initiatives
rather than adopting a whole-of-life approach
Adopt static models of benefits realization
ratherthan acknowledging the moving goal posts
natureof IT investment
Rely on initiative-specific approaches to
benefits realization rather than adopting
consistent, businesswide standards and approaches
6
What Drivers? Accelerating Discontinuities in
Business and Technology
High
Leadership must envision and plan structured
change
Leadership must inspire transformation
Impact of discontinuity on business, market and
customers
Prepared Response
Agile Response
Leadership can control and direct routine
activities
Leadership must enable and coordinate autonomous
initiatives
Low
Operational Response
Tactical Response
RTE trend
7
Value on Investment for Workplace Systems
Organizational Impact
Strategic direction/ competitive advantage
b
Enterprise or team performance/ competitive parity
Individual employee performance
Strategic
Tactical
Transformational
Scope of Initiative
Incremental
8
Summarizing
Industrial Age approaches to IT investment and
benefits realization
The Problem
No correlation between IT spending and business
value
The Result
Value standards, processesand governance
structures that connect IT and enterprise strategy
The Solution
9
Synchronizing IT and Enterprise Strategy

• John Mahoney
• Chief of Research for IT Services and Management
• Gartner

These materials can be reproduced only with
Gartners official approval. Such approvals may
be requested via e-mail -- quote.requests_at_gartner
.com.
10
Synchronizing IT and Enterprise Strategy

• John Mahoney
• Chief of Research for IT Services and Management
• Gartner

These materials can be reproduced only with
Gartners official approval. Such approvals may
be requested via e-mail -- quote.requests_at_gartner
.com.