The research involved the use of IT maturity model which assessed organizations in terms of the extent to which IT achieves cost effectiveness and how much value IT brings to the overall business. We have considered organizations that have succeeded on both fronts to be the best in class. Three key areas were identified as the major parameters to achieving a best-in-class status:-
- Demand Management –Demand Management is the most crucial area as it this activity which defines which applications find their way into the portfolio.
- Application Portfolio Management – This area measures the steps best-in-class organizations take to manage their application portfolios actively and effectively.
- Operating Model – This is the organizational structure that is put in place to manage activities related to application portfolio. Best-in-class organizations differ from the rest in aspects of operating model like use of offshore resources, the geographic distribution of delivery, SMAC adoption and agility.
Key findings of the report show:
- Adopting best-in-class practices in demand quality could save up to 5% of organization’s global run costs and quality of solutioning could reduce costs by up to 10%.
- For best-in-class organizations, 76% benefit from good demand quality compared to 50% for rest of the organizations. 80% of best-in-class organizations’ critical applications benefit from good demand quality whereas for other organizations it is only 48%. It means that in these organizations, critical applications are more suited to their business needs, easier and more cost effective to run and maintain.
- The main benefit in the area of application portfolio management relates to risk mitigation and has a 4% average savings expected on total cost of ownership and managing the “long tail” of small applications.
- The operating model combines all the levers related to IT team organization. Within best-in-class organizations, industrialization is a core element where expected savings from best practice are 18% on average.
After five years of in-depth research into IT performance, Capgemini has developed a unique knowledge base that reflects the way IT teams manage their application portfolios. It contains more than a million data points, gathered from more than a hundred portfolios across all industries. This data assembles objective facts derived from Capgemini’s delivery experience with its clients. This rich information resource has been exploited through the use of analytics and big data techniques to identify segmentation, data correlations, and best practices. The data gathered were from diverse sectors with major representations from Manufacturing, Automotive, Aerospace, Utilities and Telecom organizations.
With 180,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.