Once upon a time, there was business strategy and technology strategy. They led more or less separate existences. Now, there's just one strategy...driven by technology.
According to IDC*, 80% of revenue growth will depend on digital offerings and operations by 2022. Therefore, the IT function is today at a crossroads. IT should not be seen anymore as a standalone element, but as a connector that will fuel human/machine collaboration. While businesses must 'override' the silo mentality, it is key to define new standards that will help this new Business-IT 'joint venture' to flourish and innovate.
Redesigning the IT operating model will help organizations to gain flexible, connected and more scalable IT functions that will speed up to meet product and service objectives as well as return value for the ultimate customers.
Here are five areas to focus on to ensure your strategy spells success:
The dynamic approach
To keep up with the high-speed pace of our hyper-connected world, we can no longer rely on lengthy traditional IT finance processes.
That's where dynamic investment comes in. To succeed, you need to experiment fast, potentially fail, but most importantly, get back up to return value quickly. Not only should organizations be flexible enough to allow investing almost anywhere at any time, but putting in place a lean approach also means capital, capacity and resources will not remain tied up long term.
Bringing the workforce up to (market) speed
Nowadays, technology is the driving force behind most business functions. As tech and business strategies converge and merge, it is essential to have a helicopter view of the IT workforce to get a clear picture of the full spectrum of talent, skillsets and possibilities available. Once assessed, future-proofing the workforce, is paramount to keeping up with the breakneck pace at which technology is advancing. After all, people are one of the company's biggest asset.
What does this mean for the CIOs and leaders of the future? First and foremost, they must commit to cultivating a tech-centric workforce where business and IT skills collectively solve problems and drive value.
In technology we trust. But do our customers?
Implementing change within the company and transforming culture for the employee is the first hurdle. But what about reassuring customers? Fear and apprehension of the unknown, especially when it comes to something intangible (and unfathomable to the untrained eye) is inevitable. Ensuring customer trust must be factored into every step of the IT strategy. The key is to tap into customer needs and tailor the most effective IT model based on those specific needs.
Technology is the essential ingredient for meeting customer needs. Customers are satisfied when it works. And when it doesn't? To put it bluntly, trust goes out the window.
Enhancing the customer experience shouldn't be seen as a race to deliver new software at full throttle. Understanding clients' needs and expectations, and meeting their demands is the priority. A fully connected enterprise's success lies in its ability to foster collaboration across all functions. A unified model of the IT delivery model, therefore, is required where elements such as security, risk management, DevOps and compliance are aligned, allowing organizations to minimize risk and improve quality.
As far as intangible assets go, data is the most strategic asset of the company.
To their own detriment, countless of them swim in oceans of unleveraged data. By capitalizing on AI, today's enterprises will have the means to optimize operational efficiency and retain their customers and employees.
Four tips to get your organization at market speed:
- Ensure leadership alignment on priorities & objectives
- Evaluate operating model readiness & make sure it is adapted to a connected enterprise
- Create a comprehensive transformation plan which includes interdependent operating models including finance, HR, procurement, operations & sales
- Prioritize cultural change as a key principle of your transformation approach
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.