The new economics of enterprise technology in an AI world – This is a strange collage of IT project success and failure. I think it’s saying that if your IT projects don’t show legible business improvement. They’re considered a failure. // Also, you have to look at an IT project as a big system, not just one point in time like the developers shipping an app. //
“This pattern is clear in AI initiatives, where only 1 percent of company executives describe their gen AI rollouts as “mature”10 and only 10 to 20 percent of isolated AI experiments in the past two years scaled to create value. Our analysis of the impact of FinOps programs reveals that this misalignment of incentives leads to poor spend decisions on enterprise technology and results in a 20 to 30 percent loss of value.” // And commentary on IT projects in general, namely, it’s hard to get perceived ROI on them and stick to original (incorrect) ongoing budget estimates. On the other hand, would the company survive without them? Analogously, what is the ROI on electricity? // Also: “Some 10 to 20 percent of productivity resulting from work-from-home investments benefits employees rather than the enterprise (such as improved working conditions and freed-up time for personal activities).” Employees are better off, but who cares if it doesn’t make the shareholder more money?