Wednesday, June 30, 2021

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The paradigm shifts from IT being a reactive back office function to a growth engine that is agile and develops the capabilities to drive business growth and perpetual improvement.

Information Technology can be used as a tool, enabler, catalyst, and a digital platform to orchestrate change. The real paradox is that IT depends on the business to define their technology requirements but the business does not understand the capabilities of technology and it is difficult for them to provide functional requirements for applications. 

When IT is only the mechanism for realizing a vision described by other C-level executives, it becomes a commodity. It needs to be transformed from “controller” to “enabler,” leading through “pulling” rather than ‘pushing.’

Does IT provide a cost effective and secure IT architecture and that permit the rapid development of new business services: Due to the abundant information and emerging digital technology, enterprise leaders are increasingly looking to the IT function to introduce beneficial changes into their business models to improve strategic performance, enforce customer intelligence and to position the enterprise for future industry leadership, etc. CIOs are able to constantly and dynamically lead an IT structure that will seamlessly support the business and well ahead of the business requirement. The useful tools such as IT Architecture helps the IT management leverage emerging properties (trends, opportunities) to create the business synergy, improve the growth capacity and maturity of the organization, achieve a situational balanced compromise or a trade-off, light up the business full cycles and and ensure the business as a whole is superior to the sum of pieces.

Business leaders should understand IT management in the company scope, get a better clearer picture of IT enabled solutions from a cost, transparency, and complexity perspective, facilitate IT-enabled business initiatives, responsibility, objectives, and needed resources to be successful. IT has the ability to interact with business on their processes and pain areas, the ability to bring out a technology driven solution, driving the wider adoption of applications. To expedite the delivery cycle, IT needs to shift from a builder to an integrator, from a commodity service provider to a dynamic capability builder. If that is true, then the CIO has a part in creating and supporting something that is truly transformational to the business.

Which services are concerned (increase/decrease in demand) and if IT needs to modify/provide new service bundles? From an ROI perspective, can you spell out the cost? Many IT departments operate in silos with separate teams delivering separate functional tasks, that will keep it irrelevant as on-demand IT service from the third party is fully matured. The role of IT today for many organizations is a business solutionary for information, automation, and innovation. Every new technology adopted or data mining effort must facilitate business progress but also bring down the incremental cost of growth and the time to market. Agility allows the CIO to consider ways to respond to changing business dynamics faster, drive more ROI, integrate services and any number of additional IT value-added components which can be provided.

Besides their fundamental responsibility as a Chief Information Officer, CIOs need to become Chief Innovation Officer and Chief Investment Officer. IT value is often measured by optimization and consumption of IT assets in support of the business solutions that are identified within the organization's revenue producing stream. If your key metrics focus only on cost, then don't be surprised if you are managed on cost, and IT is perceived as a cost center. What's missing in many organizations is the CIO's ability to question the business' requirements and justifications used for IT based projects. To clarify IT investment ROI, IT leaders should invite the business to provide feedback about the potential benefit, do the due diligence, ask the right questions and pick the right software/hardware. IT portfolio rationalization is an activity more critical than ever. IT applications blended with current digital technology trends can deliver significant benefits to business growth, such as real-time business insight, continuous deliveries of innovative products/services.

Can you ensure that IT services/applications are up and running (business continuity) at the same time, to run a synchronizable real-time business? IT is a superglue, playing a threshold competency role in building core business competency. IT generally tends to run at the speed equal or higher than sales which puts immense pressure to prove yourselves and hence marketing is a manner of handling perception management. IT has both internal business users and end customers, making sure that the external customers who purchase products or services have a great experience relating to any IT systems that impact them. IT needs to digitize the touch points and improve customer experience for building their company’s reputation as customer champion.

IT is a major business differentiator and needs to be on top of business initiatives to be successful. They also have to advocate for "departmental immersion" and other strategies to help IT become more integrated and aware of the organization as a whole. What is required is having an IT enabled capability strategy that integrates emerging technologies across the entire enterprise, including how best to source them. Running IT as a digital differentiator means that IT needs to be run more innovatively, it accelerates the speed and makes a difference via leveraging the emergent digital trends and exploring the new way to do things, besides exploitation of the existing methods and technologies. IT becomes an insightful problem-solver and accelerates business speed.

The paradigm shift from IT being a reactive back office function to a growth engine that is agile and develops the capabilities to drive business growth and perpetual improvement. High-mature digital organizations always look for opportunities across the business ecosystem to increase the usage of abundant information and emergent digital technologies, explore the rationale, intuitive, and strategic side of IT accordingly, with the goal to run a high performance business with a strong business brand.

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