IT departments, and those who lead them, are more than ever aware that their
role is a cog in a much larger machine.
This has not always been the case. The history of business technology is
littered with apocryphal tales of inflexible, inwardly focused, even arrogant IT
teams that became a major hindrance to the wider organisation through their
insistence that IT knows best. It is likely that most of these have since been
outsourced.
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At its best, IT is an enabler and a driver for the business; at very least it
is a vital support function. It sits between the needs of the wider company
strategy and the resources of the IT industry, translating and reinterpreting
one to the other.
But does your IT department’s structure reflect this role in the supply
chain?
Best practice in IT organisation is fragmented and varies widely from company
to company. There are highly centralised teams, perhaps with well-established
traditional functions such as support, analysis, development and data centre.
There are highly distributed teams, with a small central IT strategy function
leading staff embedded in business teams. The skill sets needed depend entirely
on the approach taken. It is easy to pick and choose from either extreme to find
something that seems to suit any need.
But many of the experts featured in the latest issue of
Computing Businesspoint out that fundamental flaws still exist.
The growth of outsourcing and the increased dependence on suppliers has led
to smaller IT departments, but they do not necessarily reflect the changed
relationship with key vendors. According to
Gartner, perhaps as little as three per
cent of the IT budget goes on managing supplier relationships – even though as
much as 60 per cent of that budget is spent with those suppliers.
How do you manage both innovation and cost control? How do you develop staff
to have greater business knowledge when the primary function of their team is
technical? And for chief information officers in particular, how do you
establish the processes and management structures to lead your department,
support your customers in the business and gain value from the suppliers upon
whom you rely?
The provision of IT is increasingly focused on the provision of flexibility
to the business, enabling and supporting change, and the IT organisation itself
needs to reflect this.
The successful IT leaders will be those who can find the best way to manage
such conflicting demands.
Do you agree?
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