Earlier this year I told you the story of a business executive who told us how critical is that business — not IT — drive process improvement initiatives. Here is another interesting case my colleague VP and Principal Analyst John Rymer and I have just witnessed.
It is the story of a business organization that developed an IT strategy based on three best practices:
The core business processes would be implemented on a single modern, flexible platform.
The platform would be service-oriented to ensure clear accountabilities and flexibility for future needs.
The platform development and operations would be outsourced to a shared services provider.
We reviewed the strategy 10 years after it was conceived to find out that it has not yet achieved its top strategic goal. More disturbing:
The development investment has been far greater than expected at the outset.
The annual cost of IT operations doubled versus the base line.
The reliability of the processes converted to the new environment went down.