As a cloud and IT as a Service (ITaaS) transformation strategist in the IT industry for 20+ years, I’ve seen successes and failures. You might be surprised to hear this, today’s technology-focused ITaaS approaches are missing the point; they ignore the changes in the competitive environment and as a result deprive your business lines (BLs) of the pure business benefits they expect from the cloud.
What you must be aware of is, ITaaS isn’t a technology, it’s nothing else than an operational model, that is, an integrated platform of people, processes, best practices, governance structure, and technology specifically arranged to meet a specific business goals.
In order to give BLs the competitive advantages they need to grow in the digital era, you must drop the belief that cutting IT costs and accelerating applications delivery is what matters. You must reinvent the relationship with the business and offer a new IT service delivery paradigm more focused on business concerns.
The rising digital business environment forces businesses to seek new growth strategies
A topic that’s unfortunately out of IT concerns is the transformation of the competitive environment and how businesses adjust to it, it’s the major issue for BLs and CIOs should not underestimate it.
Shifting to the digital business environment
As illustrated, the combined effect of the proliferation of startups created by highly qualified unemployed seniors and entrepreneurs, the increasing adoption of cloud which reduces IT Total Cost of Ownership (TCO), and the Internet of Things (IoT) which substitutes traditional services with digital services aren’t only stepping up the global competition but are also changing the way businesses deal with it. Responsiveness to market opportunities is now the required competitive advantage.
The fact of the matter is, there’s a serious disconnect between business lines and IT about how ITaaS could help to meet the digital challenges. IT insists on seeing expenses reduction and accelerated application delivery as the way to go while BLs see the establishment of integrated collaborative environments involving the business and IT as the most effective way to break down organizational siloes and hierarchical barriers and meet the market responsiveness challenge. An IDG Research Services Survey: Your Journey To IT as a Service (…) involving 350+ IT and business unit directors at enterprise of 1,000 employees, sponsored by VMware and EMC confirms that fact; it reveals in page 2 that only “11% of business folks believe IT understands the business needs and wants” and in page 3 that “more effective IT and business partnerships” is the way to go.
The question is how well your ITaaS / Cloud strategy complies to that vision.
IT is missing the point, migrating to cloud doesn’t make a growth strategy
One of the reasons business lines increasingly use shadow IT is, CIOs and IT vendors ignore their concerns. While they think agile and integrated environment of people, processes, best practices, IT services and tools could help to responsively address market opportuntinies, IT continues to offer the same cost reduction and accelerated application delivery value propositions.