Better Modeling to Manage Risk and Reward
IT and business leaders responsible for making sure that their investments don’t cripple their enterprise’s ability to do business should take a look at Mike West’s latest Strategic Perspective, which introduces Saugatuck’s Risk/Reward Assessment model.
We see this as the first approach to IT assessment that provides both buyers and providers with an objective, truly useful means to identify and then manage challenges in understanding, evaluating, selecting, and managing IT solutions in this new era of the Boundary-free Enterprise™ and dramatically-altered IT/business master architectures, and the processes and practices needed to cost-effectively manage them.
Why do we need a new and better model for assessing providers and their offerings?
The move to the Boundary-free Enterprise™ and its enabling Master Architecture is a major transformation, affecting both the rapidly-evolving way that business will be done going forward, and the technologies now required to make that happen. In this process enterprises are increasingly acquiring these Cloud solutions, many of which present new challenges and potential value for the acquiring organizations. On both sides of the proposition – risk and reward – there are management issues to be addressed, yet few enterprises have marshaled the resources or the approaches to manage the acquisition of this transformative technology.
Challenges in managing both risks and rewards will continue to present themselves to business enterprises implementing this emerging Master Architecture, as follows:
- On the Risk side, the challenges include managing functionality in the present and into the future; security privacy and regulatory compliance; performance, outages and service levels; platform compatibilities and integration; and managing provider relations.
- On the Reward side, the challenges are managing financial returns and work productivity; pro-active competitive positioning; synergies across the solution portfolio; agile responses to competitive initiatives; and managing partnerships.
We will further explore these challenges of the emerging Master Architecture in an upcoming Saugatuck Strategic Report on managing risk and reward in the Boundary-free Enterprise™, to be published later this month.
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