Informal group to encourage idea exchange on best practices, lessons learned and solutions for improved electronic stewardship at facilities in government facilities and elsewhere.
October 15, 2010 at 7:32 pm #112937
Reuse really matters – even in the depths of the recession
by Mark McDonald | October 15, 2010 |
This summer Gartner Executive Programs and MIT Sloan School’s Center for Information Systems Research (MIT CISR) published a report on the Advantages and Economics and Value of Reuse. The report is based on a study of more than 1,500 companies to understand the impact of reuse.
The joint study defined reuse as using existing business processes, applications, data and technologies to improve performance. One of the findings of the analysis related to understanding the relationship between reuse and financial performance. The original report looked at financial performance in 2008. One of the findings was companies with high reuse experienced higher profit margin and revenue growth.
The question arose regarding the importance of reuse in a time of recession, so we updated our analysis to include 2009 financial data. The results indicate that firms with higher levels or reuse experienced higher average net margins and revenue growth than firms with low levels of reuse for the period 2008 – 2009.
The idea of reuse in IT has been around since the 1990s. Leaders are redefining this idea, tying it directly to business performance rather than restricting it to technology. The result is new tools that create business advantage, change IT economics and generate new sources of value.
This report addresses the questions, How does reuse affect enterprise performance, and what are the practices associated with effective reuse?
“The Advantages, Economics and Value of Reuse” was written by members of the CIO & executive leadership research group, led by Mark McDonald (group vice president, Gartner Executive Programs) and Stephanie Woerner from the MIT Sloan School of Management Center for Information Systems Research (CISR). This report is the result of a joint study between Gartner Executive Programs and CISR.
Leading CIOs are changing their views on reuse as a means to raise business performance and IT value. They recognize that in the past, reuse was viewed as an application tool. Today they are building on reuse by extending the practice into business processes, applications, data and information to raise business performance.
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Reuse raises business performance and IT value
Today’s leading CIOs are applying the idea of reuse to raise business performance by changing the way they think about using IT assets to address business issues. This report is based on a study of the results of the 2009 Gartner Executive Programs CIO Survey. The survey included responses from CIOs of 1,526 companies; it found that the enterprises achieving greater reuse were not only better at meeting the business’s expectations of IT, but also achieved higher levels of business performance.
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