Simplifying IT leads to better business outcomes: Study

Jul 08 2014, 18:05 IST
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Companies in the study who reduced IT complexities were able to realise average annual benefits of $83 million.(Reuters) Companies in the study who reduced IT complexities were able to realise average annual benefits of $83 million.(Reuters)
Summary"Many companies today are overwhelmed by the cost and competitive disadvantage that IT complexity can create,” said IDC’s Group Vice President.

A new study from IDC, a leading provider of global IT research and advice, shows that IT complexity leads to lower profits and curbs an organisation’s ability to innovate and grow. Companies in the study who reduced IT complexities were able to realise average annual benefits of $83 million.

They also achieved other benefits including faster time to market, better customer service, and the ability to reallocate IT staff to more strategic projects.

The related white paper, titled “Simplifying IT to Drive Better Business Outcomes and Improved ROI” outlines the challenges that complex IT can create, both on the business and the IT side.

The study says that for the business, IT complexities lead to lower profits, less innovation, reduced customer and user satisfaction and less competitive advantage. The study also found that IT simplification drives a number of non-dollar benefits, including improved user productivity, faster time to market, and better customer experience.

“Many companies today are overwhelmed by the cost and competitive disadvantage that IT complexity can create,” said IDC’s Group Vice President, Software Business Solutions, Michael Fauscette. “By simplifying their IT infrastructure, organisations can devote more of their focus and resources to delivering innovation, driving productivity and keeping customers happy.”

“From the boardroom to the IT department, it is clear that battling complexity is a never-ending challenge organisations today must address,” said Oracle Senior Vice President and Chief Communications Officer, Bob Evans.

According to the study, most participating organisations found that to truly simplify IT, they needed to replace their outdated infrastructure with a simpler, consolidated, modern foundation that was better equipped to address today's demands.

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