IDC PlanScape: Technology Investments Future Proofing to Balance Innovation with Cost, Value, and Practicality

Innovation is about creating new business models or improving existing ones in the backdrop of continuously emerging technologies that deeply redefine possibilities. In this context, many innovation initiatives will fail, while a few may allow the enterprise to survive or even thrive. Future proofing technology investments - balancing innovation with cost, technology and business value, and practicality - is the new imperative for CIOs, CEOs, boards of directors, C-suite executives, and LOB executives. Figure 2 summarizes this point.This IDC PlanScape provides a guide for future proofing technology investments by detailing why this issue is critical, outlining key challenges, identifying involved stakeholders, and recommending pragmatic actions to position the organization for success. It suggests taking a phased, proof-of-concept approach to new technologies that involves cross-functional teams and maintains the flexibility to course-correct as needed. This IDC PlanScape also recommends prioritizing solutions that integrate with existing systems and continuously rebalancing the investment portfolio across the exploration, exploitation, evolution, and elimination phases. The overall goal is to provide practical advice that will result in technology investments that drive growth and productivity without excessive risk."By institutionalizing the future proofing of technology investment as a core organizational practice, CIOs and IT leaders can drive sustainable enterprise growth through technology transformation while mitigating excessive risks and costs," says Serge Findling, adjunct research advisor with IDC's IT Executive Programs (IEP). "They can nurture a culture of pragmatic innovation, implement agile data-driven processes, prioritize flexibility and integration, and ruthlessly optimize their technology footprint over time." Future proofing is an eternal cycle requiring an unwavering commitment to balancing strategic vision with pragmatic realities.