IT Portfolio Management Step-by-Step: Unlocking the Business Value of Technology

1.1. CHA CHA CHANGES IN THE CURRENT ENVIRONMENT

The unabated growth in information technology (IT) spending, a primary means of economic expansion before 2000 due to large-scale enterprise resource planning (ERP) implementations, Y2K, and the hypergrowth attributed to dot.com and e-business, is, for the time being, over. In today's turbulent environment, companies face new hurdles from:

• Greater uncertainty

• Increased commoditization

• Nontraditional entrants with competitive offerings

• Shorter half-life of information (moving strategic enablers to commodity)

• Tighter spending

• New technologies

• Changing customer demands and higher levels of personalized preferences

• Multiple pricing, service, and utility models

• Government regulations, legal compliance, and safety standards

• Increased transparency of information due to the blurring between customers, competitors, and suppliers

While many of these challenges are externally driven, the internal challenges faced by many companies include:

• Clearly defined and clearly communicated business and strategic objectives, and consensus building around these objectives

• Complexity associated with introducing and infusing change and innovation

• Identifying and managing investments across multiple divisions and business units

• Product versus service focus

• Value chain partners

• Sourcing relationships

• Cost reductions

• Responsiveness improvements

• Efficiency enhancements

Although change will continue to accelerate and have more impact, many companies continue to either reduce ...