IT Effectiveness first, IT Efficiency next

Yes, companies need to be effective and efficient to be competitive in global-world. Some Fortune 500 companies are on a right path, having aligned IT-Business and out-innovating the competition. However, most others are trying to do way too many things – and thus failing miserably. That’s why you see that most of initiatives, especially focused on IT projects fail (guess it’s like ~64% failure rate).

Where should the companies start?

There are many different approaches to correct a problem but I start bottom-up and start with basics. First “doing the right things” i.e. focus on IT effectiveness. Specifically, focusing on Project Management processes based off PMP methodology i.e., getting Scope Management, Risk Management, Schedule Management, Cost Management, Quality Management, etc in order. Getting the PMP and SDLC processes right would automatically reduce errors in Production environment, thereby increasing IT efficiency. Happy Customers (see!)

Read Gartner’s blog on IT Efficiency vs. IT Effectiveness

What methodologies to follow?

Don’t re-invent the wheel, pls!

Companies should start using industry-standard methodologies like PMP, RUP, Agile, ITIL, IVI-CMF etc, whilst creating/setting up the framework. You can then customize most of these to fit your business/IT needs. I see a lot of companies creating/inventing their own PM methodologies – just beats me!

Phased Approach:

Organization can then focus on following items in phased manner:

  • IT Efficiency (improvement of IT operations)
  • Program Management
  • Portfolio Management
  • Enterprise Architecture (EA)

IT Strategy, IT Operating Model, IT Governance are all very important – all of these can be addressed as part of  EA.

How is your organization getting IT to be more efficient?


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