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Aug 2016 - IDC PlanScape - Doc # US41671016

IDC PlanScape: Creating a New IT Business Model — "Start-Up" IT All Over Again

Author: Robert Multhaup
Adjunct Research Advisor

Abstract

This IDC study focuses on the modernization of two key areas of the overall IT business model, financial management and service management, and suggests a new framework to help company management redesign and reinvent the following components of a new IT start-up business. These include:

  • Segregation of duties of the CIO, central IT, LOB IT, and 3rd Platform suppliers
  • Financial management of the entire IT cost basis across the enterprise
  • Defining the IT service portfolio (e.g., "What business is IT in?")
  • Fostering a new business operating model — brokering and bundling of services
  • Product/service life-cycle management (L3D)
  • Running central IT as an internal SaaS business

Bob Multhaup, IDC adjunct research analyst for IT Financial and Service Management says, "When the IT business model begins to get in the way of real business innovation on one hand and real cost controls on the other, then a new business model is needed that can get control of costs and fund innovation."

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