A Practical Approach for IT Governance

Archive for March 2015

Is Gartner Magic Quadrant missing the Innovation curve!

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GartnerThis is not an attack on Gartner. While the Gartner Magic Quadrant is a respected analysis of vendors/players in the market place, it does not take into account innovation that is happening today. Although the magic quadrant has a category for Niche players and Visionaries, it was essentially based on the older product curves.

While the product life cycle itself has not changed, the impact and speed of each stage has changed dramatically. Microsoft Windows for example took close to two decades to reach stage 3, where as Uber took less than 3 years. In the past, when the CIOs were focused on cost and efficiency, they were risk averse and selected products in stage 3. CIOs looking for good deals might have ventured into products in stage 2, but seldom chose any new comers. Things are different now. CIOs recognize that innovation entails taking risk, so they are looking at Stage 1 companies as well. In the past, the magic quadrant did identify some of the Stage 1 companies, but today the time durations of these stages has shrunk dramatically. Therefore, by the time Gartner can assess, the company may have moved past Stage 1.

For example, while Gartner does talk about “micro-services”, Gartner is not addressing some of the firms who are developing entire ERP systems based on a collection of Micro-Services. Another example close to my heart was running IT like a business. This required the use of an integrated platform to mange IT with analytics to guide the development of the appropriate IT architecture and project portfolio that was aligned to the Enterprise. My company has a product that fulfills this need. Informal discussions with Gartner led me to believe that till I had $15 Million in revenues, Gartner would not have the time to look at this innovative offering. I am on the road to get there, but many CIOs who rely on Gartner will have missed out on my offering.

Again, I am not faulting Gartner. However, I am concerned that CIOs may be missing out on innovative and disruptive offerings. My advice is that CIOs need to extend their traditional networking channels to identify the players who are driving innovation. Networking with Angel Investors and early stage VCs may actually provide valuable insights to the CIO.

Written by Subbu Murthy

March 26, 2015 at 8:20 pm

Posted in IT Governance