Saturday, June 1, 2019

Running IT as Strategic Differentiator of the Business

Organizations in which the business management is technologically evolved can keep up with digital technology developments around them and manage a seamless digital transformation.

With the overwhelming growth of information, rapid changes, and fierce competitions, nowadays IT has a lot of things to leverage, IT touches both hard business processes and soft human behavior. IT needs to work both in IT and on IT; IT and business need to develop a true partnership and work to pursue the desired outcomes. IT has to shift from “IT vs. business” to “IT as the business.” IT has to move from a reactive order taker to the strategic differentiator of the business.

In the digital era, information potential directly impacts the potential of the company: All forward-thinking companies across the vertical sectors think they are in the information management business. They proactively invest in strategic information management solutions in order to run a smart digital organization. To keep information flow and capture the business insight from it, more attention needs to be placed on the conditions that allow information or knowledge to move around and generate multidimensional business value. With information-based knowledge, IT can contribute significantly and directly to the business model and strategic direction. IT leaders are able to share their technological vision, make sure that the top executive teams first understand what key elements are to drive the future business growth, and then, put the well-designed framework in place to map IT strategy to the strategic goals of the business, set Key Performance Indicators, and determine what Information Technology investment will accelerate the changes you want to see in your performance indicators. CIOs should also get involved to make sure the technology selected will actually work and can be supported, or even practice the bold leadership with a cautious attitude for driving strategic initiatives systematically and proactively.

IT organizations need to focus on business value and capability building: Digital organizations need to get away from letting things fall through and start creating an integral whole by utilizing all necessary processes to solve complexities and underpin dynamic business competency. IT is the linchpin of weaving all important business elements into differentiated business competency. Businesses today not just use IT a digital extension, but leverage IT across their organization to attain the enterprise-wide digital competency.IT is uniquely placed to influence changes through the expansion of domains of automation and the use of new technologies to provide a competitive advantage, open new channels to market, retain and grow the customer base. Digital IT has a wider spectrum of integration of IT-enabled business solutions with continuous deliveries. However, without business involvement, it’s not going to work. Leveraging unique IT knowledge and capability to build business competency is crucial for the business's long-term growth and maturity. IT organizations must be able to contribute to the future business strategy by leveraging technology as a means to an end, not the end itself.

IT and business need to develop a true partnership and work to pursue the desired outcomes: To run IT as a strategic differentiator of the business, IT leaders should develop the strong partnership with business executive peers, functional managers, as well as other business service providers within the digital ecosystem. The strong level of business collaboration should entail effective communication, build a trustful business partnership and amplify collective potential. It means having IT and business collaborate as the trustful business partner so that strategies, people, and project portfolios can work in harmony. IT should also build a solid partnership with a mixed bag of diversified vendors across the digital ecosystem, running an intrapreneurship manner to solve thorny business problems innovatively. In today’s digital era, information and technology are often driving business transformation. The large leap can be made through the strategic partnership establishment by innovating, modernizing business models and developing significant opportunities for catalyzing business growth and delighting customers.

Great opportunities, dangers, and disruptions are around every corner. Organizations in which the business management is technologically evolved can keep up with digital technology developments around them and manage a seamless digital transformation by integrating IT with change management to deliver strategic differentiation.

1 comments:

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