Sunday, May 10, 2020

How should Executive Teams Provide Input Upon Varying Issues for Improving IT Maturity?

Modern IT organizations need to be strategic business partners and gain competitive advantages, and top executives should provide input upon varying issues for improving IT maturity.

Organizations across vertical sectors declare they are in the information management business. Many think the new way of running a high-performance business is a set of interdisciplinary management principles and practices through the Information Technological lens.

Highly innovative companies must leverage IT and encompass all of the relevant disciplines in place and actively monitor emerging business opportunities in order to recognize and act on them in a time frame that will yield strategic advantages.

The top executive team including CIOs should ponder further: What's the business perception of their IT organization? Is IT a competitive necessity or the differentiated advantage of the business? How should they provide input upon varying issues for improving IT maturity?

The expectations business leaders have about IT organization: IT is often one of the biggest investments the business ever makes. Senior executives and business managers should foster communication and have IT really understood their goals and plans for expanding the business, as well as their expectations of IT. That means having IT and business collaborate as equal partners so that strategies, organizations, people, processes, technologies, culture, etc, work in harmony, and drive IT-driven business initiatives to increase revenues.

To demonstrate IT value, it is important to convince the shareholders of new initiatives with solid business justification by showing them the potential business benefits to meet the strategic goal of the company. However, in today’s business dynamic, it is increasingly more challenging for IT to deliver to business what it wants when it wants. By the time IT is ready to deliver solutions to the business, the business needs - "needs" and not just "requirements," have already changed. To keep improving IT performance and exceed business expectations, IT leaders should listen to a wide range of opinions and approaches and understand how that might benefit the business, and also work with the business on plugging revenue leakages.

Immediate and long-term priorities of IT organization: IT is the only function in an organization that has the touchpoint with all other functions and provides the necessary integration through efficient business processes and information systems. Thus, IT contribution to business value does not come from the technology itself, but from the change that IT both shapes and enables. Setting priority to leverage limited resources and talent to maximizing business value is an important step in climbing IT organizational maturity. As long as the business values IT as a strategic partner, the top priorities have to be on business focus, all IT spending must be rationalized against the business benefits.

Nowadays, velocity and uncertainty are now digital new normal. The challenge is to prioritize what you know about and keep an eye open for signs of things you don't know about. Only through an in-depth understanding of business, the IT leaders can make a priority choice based on the comprehensive understanding of the company, industry, the geographic location, customer-centricity, the appetite for risk, and ROI. A healthy IT portfolio is crucial for improving organizational performance and maturity.

Maturity of the IT function: Organizations rely more and more on information technology; IT maturity is proportional to overall business maturity. IT spends a very large amount of professional time working on the business side of things, taking structured approaches that lead to real decisions and properly resourced projects. Thus, to run a high mature IT organization, CIOs have to become business savvy, collect feedback from business executives and customers. They need to participate in forming the organization's strategy, its implementation, and assessing its performance continuously.

In fact, the journey of improving organizational maturity is more evolutionary than revolutionary. Making an objective IT maturity assessment is always a critical step to run a high performance IT organization. High mature IT is able to deliver innovative products or services, help to reinvent the business model, and solve problems creatively. Those organizations in which business management is technologically evolved and keeping up with digital technology developments around them for the desired synchronization, embedding the power of information in its fiber to weave agility and other business competencies, can reach the next level of organizational maturity.

Modern IT organizations need to be strategic business partners and gain competitive advantages. Top executives should provide input upon varying issues for improving IT maturity, and ensure that IT is strategically positioned to be ahead of where the business is moving next, in order to drive change and lead the digital paradigm shift seamlessly.



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