The Next Generation IT Organization

To align business and IT priorities, it’s difficult to choose which is more important: ‘business presence in IT projects’ or ‘IT presence in business projects’. The art is to create true hybrid, co-led teams.

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There are two different types of behaviors further refined within the IS/IT organizations:

Cost cutters – IS/IT organizations that focus on cost reduction and operational efficiency.
Innovators – IS/IT organizations that focus on exploring new ways to use IS/IT for business innovation and operational excellence within the business functions and processes – together with the business stakeholders.

CIOs should not think of this as an “either or” decision; successful IS/IT organizations have to do both. IT can no longer serve a back-office, support-the-business role in today’s “tech as product” world. To stay relevant, IT must become a developer of digital products and apps that customers use directly to help drive company growth.

It’s not about information technology anymore. It’s about Digital Business and this Digital Business calls for a customer-facing CIO.

Exploiting Digital Business is not just about innovation, agile channels, mobile computing and social media – it has profound implications for the IT organization and its context – the IT Operating Model, that is, the basic framework our IT organization follows to get our products and services into the hands of its consumers and customers.

Summing-up: Digital Business is all about the convergence of IT with the business. IT needs to stop prognosticating about the trends and start developing the next generation IT organization to keep up with those trends.

These notes have been taken from:

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