PracticeConsultingRigid IT compounds business risk

Rigid IT compounds business risk

Rigid IT infrastructures compound business risk and the problem is set to get worse as the pace of change in commerce increases, industry experts have warned.

Link: End of an era fo the IT industry

According to GartnerG2, the analyst’s research service, enterprises can improve returns and reduce risk by integrating previously autonomous business processes to create a new scope of management capabilities.

This process, which GartnerG2 dubs business process fusion, can dramatically increase IT infrastructure flexibility.

The analyst said that business process fusion will drive stronger alignment of IT with core business processes, and provide linkage of operational and management processes.

GartnerG2 stressed that business process fusion is “not just another IT integration project”, but rather a way of integrating business processes to create value regardless of a firm’s underlying technology.

“When looking at business in its entirety, strategy-aligned change links with business process fusion to help overcome the disconnect between top-down policy, strategy, change and bottom-up infrastructure constraints we call the Grand Canyon of Strategy,” said Jorge Lopez, vice president and research director for GartnerG2.

“This process coincides with the two things executives say are the most difficult to change: corporate culture and information systems.

“Using this approach improves business returns, resolves internal conflicts, reduces business risk and defines IT infrastructure.”

GartnerG2 said that business process fusion can enable the accurate measurement and rapid alignment of IT, making IT infrastructures more flexible.

Kraft Bell, vice president and research director for GartnerG2, added: “Once an enterprise is able to reduce the risks of IT dramatically lower than the rest of the industry, even tactical IT that is execution-oriented can become a disruptive factor and a competitive advantage.

“The outcome will reduce the risk of many tactical business initiatives, as well as remove internal barriers to integrate and transform IT in change initiatives for entering a new market or creating a new product.”

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