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Survey shows mismatch between IT-spend aspirations and results

CHRISTO BRIEDENHANN
Transformer organisations realise the importance of high-performance network infrastructure to gain the full potential benefits of cutting-edge technology

CHRISTO BRIEDENHANN Transformer organisations realise the importance of high-performance network infrastructure to gain the full potential benefits of cutting-edge technology

25th April 2014

By: Schalk Burger

Creamer Media Senior Deputy Editor

  

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Only 26% of new information technology(IT) systems produce the intended results in companies, according to a new study involving 1 012 large firms employing more than 1 000 people in the UK, France, Germany, Switzerland, Italy, Spain, Benelux, Russia and South Africa.

The study by UK research company Loudhouse found that only 25% of companies can be classified as “transformer” companies that enable new systems and capabilities to change the way they operate and serve clients, says the technology firm that commissioned the study Riverbed Technology South Africa director Christo Briedenhann.

“Part of the problem is that companies often do not consider the complete environment and commensurate changes to networks, ancillary systems and workflows needed to support a change in operations,” he explains.

According to the research, this infrastructure consideration is one of the key differences between companies that do not achieve the intended value from IT systems and those transformer companies that derive benefits, cost reductions and operational improvements from new systems.

“The benefits of new applications are being undermined by infrastructure that is unable to support leading-edge technology. “Thus, expensive applications deployed across the business fail to realise their potential and are a substantial cost to the company.”

Transformer organisations realise the importance of high-performance network infrastructure to gain the full potential benefits of cutting-edge technology. Not only are these companies enjoying greater productivity across the business, but they are also expecting a quicker return on investment.

“Lines of business and end-users now make their own IT decisions in many cases. Business leaders regard these new technologies as representing a significant opportunity to innovate, improve efficiency and provide differentiated customer experiences in highly competitive marketplaces. The challenge, however, is ensuring that repeated adoption of new applications delivers maximum benefit and optimal value to the business.”

According to the study, complexity emerged as the key reason for technology investments failing to deliver optimal value for organisations, followed by the need for increased skills and resources, as well as increased security threats.

Since these challenges stem from poor infrastructure and networking, network and data- centre performance are recognised as significant factors in application failure. However, for most IT departments, delivering a high-performance IT infrastructure for business applications is not considered as a key performance area of the departments.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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