Using innovation incentives to align IT with business

Information technology innovation should be written into contracts that also include incentives to align IT strategy with business, Gartner said research director, Steve Bittinger Tuesday.


For benefits to be realised and to IT projects to be delivered on time and under budget, alignment he said, needs to be linked to architecture and governance.

He said enterprise architecture was unheard of a decade ago but today is an integral part of business use to define strategy.

"More mature organizations have learnt how to integrate business and IT with a clearly defined enterprise architecture roadmap," Bittinger said.

He referred to Gartner research, ‘The Users' View of Why IT Projects Fail’, which found up to 46% of systems delivered did not meet requirements, while 37% met requirements but were delivered late.

He said: "Strategy is key to competitive differentiation and no matter how good your organization is at the process level, strategy will not give you differentiation unless it involves good governance and mechanisms for executing against a roadmap."

And he added that organizations were still fairly immature when it came to delivering projects with real business benefits.

"Different parts of the business should be linked, like IT portfolio management and IT enterprise architecture."

Bittenger said that in such an environment an IT department could present a coherent plan to business on how an application portfolio will evolve over time.

"I know of one organization that has developed an application planning cycle that extended as far as 2015," he said.

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