Right-Sizing IT: Aligning Resources with Business Strategy
In today’s fast-paced digital landscape, the key to sustainable IT strategy isn’t necessarily about scaling up—it’s about right-sizing.
Right-sizing is about aligning your IT investments, capabilities, and processes precisely with your business needs. It means assessing whether your current technology resources match the direction in which your organisation is heading. Here are a few key considerations:
1. Scalability vs. Flexibility: Many organisations aim for scalability, but flexibility often wins. Investing in resources that can adapt quickly to changing business strategies is more effective than simply scaling everything up.
2. Cost Efficiency: Over-committing to resources can strain budgets, while under-investing leads to inefficiencies and missed opportunities. Right-sizing IT ensures you’re not paying for technology that’s underutilised or missing out on crucial tools.
For instance, Gartner reports that, on average, 30% of enterprise software licenses are unused or wasted, highlighting the need for better alignment between software procurement and actual business requirements.Â
Source: Gartner, 2023 Report on Software Asset Management
3. Strategic Procurement: IT procurement should reflect the long-term goals of the business. It’s not just about purchasing hardware or software—it’s about making strategic choices that support where your business wants to go.
According to Flexera’s 2024 State of the Cloud Report, 74% of companies report that optimising cloud spending is their top priority, emphasising the importance of right-sizing cloud resources and eliminating wasteful spending.
Source: Flexera, 2024 State of the Cloud Report
Additionally, a 2023 survey by Spiceworks Ziff Davis found that 53% of IT leaders are planning to increase spending on IT services that directly align with their business transformation goals, showing a shift towards strategic investment rather than blanket growth.
Source: Spiceworks Ziff Davis, The 2023 State of IT Report
By focusing on right-sizing, businesses can remain agile, reduce waste, and ensure their technology investments deliver true value.
How do you ensure your IT is aligned with your business strategy?
Using a structured approach like ALIGN: (Assess, Link, Identify, Govern, Negotiate), ensures that IT resources are continuously evaluated, optimised, and strategically aligned with the evolving business strategy.
We’d love to hear your thoughts!
7 Oct 2024