People managing technology should have a strategy to retire applications instead of buying and implementing new applications, and then spending too much time on trying to integrate them, says Jean-Louis Previdi, research director of Meta Group EMEA.
Previdi delivered a keynote address at this morning`s opening of the Metamorphosis conference at Caesars Gauteng, speaking together with David Yockelson, director of technology research services at Meta Group.
Fred Amoroso, CEO of Meta Group, said integration is the next big theme that technology is going to offer business. "There`s a tremendous opportunity to integrate business processes," said Amoroso, adding that the focus of IT needs to change.
"Not long ago we were focused on speed, now we are focused on cost-cutting. But looking historically, we can learn that as we spend too much time on cost and speed, quality becomes a problem."
He noted that successful, agile organisations are those that can manage all three - speed, cost and quality.
Previdi said deregulation in telecoms and other areas of business will force organisations to change. "As this happens, we need to put IT in the context of business, building on-demand capacity. Adaptive organisations, which can sense the change and respond to change, will succeed.
Previdi pointed to the need for technology managers to shift some of IT costs from fixed to variable costs. "At least 40% of your costs should be variable, only then can you be flexible and respond to business realities. IT should not continue to be a cost centre, but bring value and be the catalyst of business change."
But to be that, IT managers should try not to hide their costs. "Be transparent and only then will you be able to offer on-demand capacity and flexibility."
Through its IT Portfolio Management concept, Meta Group advises IT strategists to identify all their IT assets and manage them as an investment, using value metrics. Previdi warns that while the cost of platforms and applications will go down, the cost of management and people will go up.
Yockelson noted that for 20 years the industry has been saying that IT has got to get closer to businesses. "But today, to build a 'sense and response` organisation, we need to appreciate the importance of information architecture."
He said architecture is important because it is a bridge between business strategy and technology delivery.
Yockelson concluded by stressing the importance of integrated, service-oriented architecture. "We don`t have all the pieces to build this architecture today, but we need to start building the foundation in order to be ready in three to four years` time when we have all the components of integrated computing."
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