Baseline/BTM 500 MethodologyBy BTM Institute Staff Writer | Posted 2009-09-29 Email Print
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Enterprises that have achieved business-technology convergence can respond nimbly to change and use their superior performance to leapfrog over less-agile competitors and position themselves for future growth.
2009 Baseline/BTM 500 Methodology
This year’s Baseline/BTM 500 report was built on the same foundation as the 2008 study: Both were based on the BTM Maturity Model and the Business-Technology Convergence Index. By offering participants the option to self-assess their organization by participating in from one to four 10-question surveys (each focused on one of the four functional areas of the BTM Framework), we can provide a more in-depth view of the management practices conducted in leading organizations throughout the United States.
The Convergence Index highlights the connection between corporate financial performance and business- technology convergence, as measured by the BTM Maturity Model. Enterprises at lower levels of maturity score lower for business-technology productivity, responsiveness and project success than enterprises at higher levels. As enterprise maturity improves, the increasing synchronicity of business strategy and technology delivery makes the enterprise more agile and adaptable.
To measure what companies do differently in terms of their management behaviors, BTM assessment tools are used to evaluate organizations against management capabilities for effective business-technology convergence. These capabilities are grouped into four functional areas:
1. Governance and Organization
2. Strategic Investment Management
3. Strategy and Planning
4. Strategic Enterprise Architecture.
Each capability represents a specific management competency defined by four critical dimensions: having repeatable processes, executed through appropriate organizational structures, enabled by the right information and using the right technology.
BTM research shows that at Level 1, enterprises typically execute some strategic capabilities in a disaggregated, tasklike manner. At Level 2, an organization exhibits limited capabilities, attempts to assemble information for major decisions and consults the technology function on decisions with obvious business-technology implications.
Enterprises at Level 3 are functional with respect to the capabilities, and those at Level 4 have the capabilities fully implemented. Organizations achieving Level 5 maturity have achieved full convergence and know when to change the rules to maintain strategic advantages over their competitors.
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