About
Subscribe

Operational issues highlighted

IT must deliver business value, says Gartner.

Samantha Perry
By Samantha Perry, co-founder of WomeninTechZA
Johannesburg, 05 Oct 2009

Managing legacy and emerging technologies while aligning IT services and business strategy is challenging under any circumstances, but more so in the current economic climate. So says Gartner, which has identified seven key issues to help companies prepare for the future of IT operations management. Key among these is IT services.

According to Gartner, the critical issue in this sphere is: How will IT operations define IT services, align them with business value, and manage and measure them end-to-end, across multi-sourced environments?

“The challenge for IT operations,” Gartner says, “is to develop a meaningful set of measures and results provided to the business and important to the business stakeholders. CIOs and IT executives need to redistribute their management attention toward the results they are creating in the enterprise - the changes that impact business performance - rather than how effectively they are spending resources on IT activities. This will be difficult, because much of the IT financial discipline and controls implemented during the past five years have focused on managing spending, not on delivering business value. Current measures don't often address the demand side, because they don't tell how well a business service, such as a public portal or an order entry application, is operating (for example, in terms of improving customer loyalty and stimulating sales).”

Measurement is critical, as Gartner notes: “Infrastructure and operations (I&O) represent 60% to 70% of overall IT budget spending. Within I&O, IT operations management (ITOM) is responsible for delivering IT business management functions, IT management processes, people and technology across a constantly changing environment. History shows that economic downturns result in budget reductions, executed many times without deference to or understanding of IT services or business value. Addressing IT services and business value must take shape, while balancing the demands of managing the constantly changing production environment, controlling costs and exploiting emerging technologies.

“CIOs and IT leaders who view the future as an extension of the past will increasingly find themselves in a weaker position, because the business now has greater choices in how IT operations requirements are met. CIOs and IT leaders have realised that 'business as usual' is no longer applicable, and they must deliver changes to stay competitive and deliver on the business' needs. Furthermore, the future will require that these leaders not only remain nimble, but also that the IT organisation be receptive to change, which will require a modification of attitude and thinking for some employees.”

* Report courtesy of Gartner, information sourced from: Key Issues for IT Operations Management, 2009, Kris Brittain, Patricia Adams, 21 April 2009.

* Article first published on brainstorm.itweb.co.za

Share