IT- the Heart that Pump Business Transformation
In the recent past, ‘digital’ and ‘IT’ has been exponentially gaining momentum and unrivaled attention. This is being tagged with everything that touches upon technology. Majority of today’s organizations across industries like retail, logistics, healthcare, insurance, banking, financial and many more, are fundamentally depended on IT infrastructures. Particularly in industries such as telecommunications, media, entertainment and gambling, where the products are digitized to the core, their very existence revolves around how effective they are, regarding application of their IT. This sprawl of IT influence, brought-in by the commercialization of internet, has become the bloodline of executing multitude of business aspects—especially for the ones doing online business. It is no surprise that even government and public administrations are inclined more toward digital services, as it is the new trend along the length and breadth of businesses or anything that deals with people. Adding to the pile is the ubiquity of mobile devices and social media networking that embrace immediate access and quick response times. This approach is even more complemented by smart connected devices like the IoT and wearable equipments, pushing out more number of innovative devices and products—transforming business models and operations.
Having mentioned this, it is possible to sense the presence of IT and its applications all along, which indicates that for businesses to flourish and forge ahead, they need to embrace IT above all. IT plays the key role in developing the computing structure covering end-to-end designing and deployment of business processes. It is where the blueprint of technology and business transformation strategy is created. With the proposition of a technology-based business transformation strategy, IT departments and developers are held responsible for implementing the transformation. This is where IT has the integral part in transforming business and delivering positive results. As noted by the experts, leveraging enterprise architecture, constant discussions with business units and keeping a check on legacy architectures are vital in clearing roadblocks regarding technology-based business transformation strategy implementations.
According to Gordon Cooper, VP of standards and governance, AIG, says that technological continuity is among the top challenges any implementations face. “If you look at how technology is updated in an enterprise, one of the things you're working through is matching the technology adoption curve with the technology value curve,” he adds. Putting it straight, users always welcome new technology, but enterprises are concerned with the risks they have to go through in accepting new technology. To resolve issues in this regard, including risk assessments as part of enterprise architecture (EA) is a positive move that allows IT team/developers to map specific product lines, capabilities and lifecycles to pin down areas where improvements can be made. EA also facilitates examining system interdependencies to determine impacts of changes. The IT department can also point out duplicate applications and other redundancies. Without a robust EA, these processes can be costly, time consuming, and complex. "Enterprise architecture, while not a panacea, definitely provides a lot of value," remarks Cooper.
Additionally, it is important for IT and business sides to work hand-in-hand for technology based transformations on business outcomes. According to Stephen Lis, partner and national leader at KPMG Management Consulting, “The technology is the catalyst for the digital transformation and not the end result.” IT possesses the first-hand in making enterprises know the expected outcomes that any transformation would bring in to any business.
For any organization, IT infrastructure is no more a support function instead it is the backbone of executing business objectives to deliver outcomes. It plays a central role in rolling out business strategies faster in a cost effective fashion. It does focus simultaneously on transforming toward innovative ways of working and implementing improved business workflows.