Friday, August 12, 2016

“CIO Master” Book Tunning XXXXXXXV: Three Aspects in Running a Hybrid IT and Digital Organization

The challenge is having a harmonized vision about overall IT management philosophy, capabilities, structure, and maturities in a digital organization.

We live in the world with both “old” and “new,” embracing digital is inevitable as that is now part of the reality. In order to lead change and drive digital transformation, IT should combine the old way to do things, and the new way to explore, the next practices and the best practices, take the balance of traditional hierarchy and flatter structure; keep the lights on,” and “doing more with innovation.” Either from management, technology or talent perspective, Is HYBRID the right way to move forward with the right speed?


Being hybrid means to take "BALANCE" as a management philosophy: In order to make a solid digital transformation, there are many seemly paradoxical, but indeed coherent elements in running a high-effective IT today; for example, stability and agility; standardization and innovation, management and governance, leading from front and running a back office IT. The BALANCE is important in regards to making a strategic decision that delivers the real sustainable competitive advantage for an organization. Logic and rationalism keep business on track, but standard businesses are not viable. Businesses must perform well compared to their peers to be successful in the long run, innovation is key to being differentiated. Hence, it's critical in building a creative working environment to encourage innovation but also strike the right balance to keep tuning operational excellence, with the goal to run a high-effective and high-agile IT organization today.


The hybrid IT capabilities work best to fit most organizations: Often, centralized or decentralized IT capabilities are the perpetual dilemma to optimize IT as a business enabler. Paradoxically, there is no one structure fits all, and it’s not a black or white decision; centralizing and standardizing what makes sense enables flexibility without chaos. Set guidelines to centralize what makes sense from a decision-making perspective - strategy formulation, common and shared services like economies of scale and unification across the business, risk/disaster management. It relates much to who makes IT decisions and If done right, that you can get the best of both worlds is the best approach. The management effectiveness and IT capabilities always depends on several factors like the firm’s culture, strategy, IT budget, standards, architecture, engineering, even governance to a certain extent, and overall IT maturity and so on.


A hybrid organizational structure to enhance cross-functional communication and collaboration: It’s a hybrid, networked, extended digital working environment. Hierarchical structures will be slowly but steadily transcended to interconnected, network structures. Look at all the elements, including the human element, as an integrated system and functions as an organic living cells. The emergent organizational models will integrate with social process models with both structured and unstructured social processes. The latest enterprise digital computing technologies enable seamless virtual platforms, enhance physical organization structures, empower workforce brainstorming via sharing the thoughts and ideas, engage customers and partners to voice concerns and feedback, and encourage the broader conversation and interaction within its business ecosystem and social value chain which include systems, processes, policies, culture, work climates, customers, an integration of across global business, social and political systems..


While technology provides new frontiers for work systems, there are also challenges with issues of human 'connectivity.' The challenge is having a harmonized vision about overall IT management philosophy, capabilities, structure, and maturities in a digital organization, and develop the best and next practices in running IT as a business enabler and digital engine, with ultimate goals to bring high-performing business result.






  

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