Wednesday, April 29, 2015

Five Capabilities of Digital IT

IT is the digital brain of modern organizations.

Embracing digital is inevitable as that is now part of the reality... IT is no longer that island or back-office as a silo specialist function, businesses need IT as a strong partner who is passionate about exploiting information enabled by technologies to work at the heart of the enterprise. IT needs to transform itself from a service provider to business solutionary, from a cost center to an innovation engine, from process driven to capability oriented. What are the most needed digital capabilities IT can provide, and how to build them?

Operation Capability: Keeping the light on is still fundamental for any IT organization to gain a good reputation. IT operational capability can be built through IT-business alignment: the arrangement and enablement. Those organizations that have a more mature alignment outperform their competitors and tend to be more responsive to these changes. Alignment goes beyond conformity and order taking, it needs to include a close partnership with interpersonal communication, value analytics, and governance. IT with strong operational capability helps the business achieve efficiency and reliability.

Innovation Capability: More often technology is the innovation disruptor and the information is the lifeblood of the organization. Either disrupt or being disrupted. IT is at an inflection point to lead organizational level digital transformation because it is in the unique position to oversight business processes and processes underpin business capabilities. IT is the key element of business innovation, either for catching customer delight or achieving business optimization. IT innovation capabilities directly impact how it helps the business gain competitive advantage and capture upcoming trend to compete for the future.

Project Portfolio Management Capabilities: The balanced IT application portfolio can deliver lots of value for the business in many ways. It is apart from the basic automation, availability of information and reports. This is the digital arena, IT applications, and its dynamics is totally different. The right IT applications blended with current digital trends can deliver the significant benefits to the business, such as customer satisfaction, business optimization, and change adaptability, etc. Portfolio management is also essential to successful corporate governance and as such, a comprehensive fusing of a firm's strategic capabilities.

Analytics Capability: Digital IT is all about how to deliver the right information to the right people at the right time to help them make the right decision. IT is the steward of business data & information. Data by itself is meaningless until it’s interpreted and analyzed. Technology enables large data sets to be captured and presented for analysis, but the value hidden in data is only revealed through intelligent reasoning. Information is raw material when you manipulate the raw material in meaningful ways, which give you business insight to interpret and utilize, then you have established a value. IT plays the critical role in information lifecycle management to transform raw data - information - insight/intelligence - wisdom. As the tech matures and the technology becomes better understood by most of the enterprise, Data Analytics will get better and become more valuable, and it will become a digital business capability IT can build on.

Change Capability: IT is always at the center of change. Change may be mechanical, but the transformation is radical. "Change" can be a somewhat mechanical implementation of new or different ways to doing something while the transformation is more likely to be a sweeping approach to altering a culture, or parts of it, possibly even to parts of its value system, to embrace such as change and help it become self-perpetuating. That said, it is referring to a modification and internalization of new values, behaviors, and culture. When the need for significant change is identified, it's generally naive to think it will succeed without transformation as well. IT can help weave all these important business elements such as process and digital technology & tools into the building blocks of change capability, as organizations that do not respond to external environmental changes will quickly be out-competed, and IT also plays a pivotal role in leading a digital transformation in their organizations.

To put simply, IT is the "digital brain" of the modern organization. Compared to traditional service- driven IT, capability-based digital IT is more value oriented, laser focus on business goals, and improve IT maturity from efficiency to effectiveness to agility; from functioning to firmness to delight.


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