Avoid damaging key business capabilities when cost cutting

The CIO and members of the IT organization have an opportunity to build business capabilities into their thinking around cost optimization

Tags: Gartner Incorporation
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By  Asad Published  April 1, 2009

The CIO and members of the IT organization have an opportunity to build business capabilities into their thinking around cost optimization. A capability-based view is powerful to avoid damage when optimizing costs.

Many business strategy experts believe that, in the current business environment, where specific business circumstances are so dynamic, the most-enduring concept is that of a business capability - an enterprise capability that can be applied to generate business success.

When conducting cost-optimization initiatives, it is important to think through the impact on business capabilities. If enterprises don't do this, they can inadvertently damage business capabilities. The CIO and IT organization can act as guardians, or at least early-warning systems, for business capabilities during a cost-optimization planning period.

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