Friday, April 15, 2016

“CIO Master” Tuning VII: IT Digital Transformation

Digital IT is about running IT as a business enabler to catalyze growth and improve organizational agility. 

The majority of IT organizations today get stuck at the low to mid level of maturity, IT is suffered from its reputation as a cost center. Hence, IT leaders need to continue asking those tough questions: Are you doing the right things? Are you doing them the right way? Are you getting them done well?  And how to unleash the digital potential of IT? Which “digital-flavored” IT should you run based on your IT organization’s specific strength and capability?


IT Digital Transformation

  • Running IT as an “Innovative Outlier” Many traditional IT organizations are still perceived as an invisible back office maintenance function, without enough knowledge about the business model of the organization; though technology is often the disruptive force for changes, IT function is often slow to adapt to changes. How can modern IT organization shift from a cost center to value creator, from an order taker to strategy co-creator, from an “isolated” support function to an “innovative outlier”?


  • Running IT as a Business Multiplier  Many IT organizations are on the journey to transform from a cost center to a value creator, from a commodity service provider to an innovation engine. The word "transformation" in itself often means radical change and change for the better - new ways and methods of doing things, new structures, new relationships etc. There are changes in two shapes from IT management perspective: One is internal where IT transforms, and the second where IT helps to transform or change the business in line with new strategic imperatives. Change is not for its own sake, but to maximize IT value and ideally, running IT as a business multiplier.

  • How to Run IT as a Changing Organization For forward-looking and highly mature organizations, the IT department has become synonymous with the change department. In order to make effective changes, you have to know the underneath structure and processes of your business, because they underpin digital capabilities of the organization. How do you make changes to anything without knowing all the parts and how they are related? A mature organization is one that can quickly and safely assess all of the consequences of a possible change and devise effective plans to achieve and sustain those changes - and to do this continuously. The IT department has been left to run change projects, to have a good understanding from a strategic perspective of the organization (structure, processes, locations, drivers, objectives, goals, applications, data, technologies.).
  • Running IT on the Fast Lane Nowadays information is the lifeblood of the business technology is often the digital disruptor, and change is the very nature of Information Technology. The irony fact is that IT is often perceived to be too slow to adapt to the changes in the majority of large enterprise organizations, and some businesses even complain their IT organizations become the obstacle to getting things done. How to speed up IT- it means IT has to adapt to changes in proactive ways, and more often, IT has to drive the changes and plays a pivotal role in digital transformation, focus on the fastest speed available - because that is where the main threat to competitiveness. It is about running IT as a business enabler to catalyze growth and improve organizational agility. In practice, how to run IT on the fast lane?

  • Running IT as a Niche Player  Digital provides significant opportunities for business growth and innovation, and IT plays a significant role in digital transformation. That means IT has to reinvent its brand from a cost center to a value creator; from an order taker to an idea shaker, and from a commodity service provider to an innovation engine and digital whole brain. But more specifically, what are perspectives to run IT as a niche player?

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