The weakest link in digital transformation

The weakest link in digital transformation

The weakest link in digital transformation

Enterprise IT refers to the function of investing, developing and operating technology solutions within enterprises. It is a multitrillion-dollar industry going through a fundamental transformation. This is why:

Changes at this scale naturally call for a new IT operating model for enterprises to exploit opportunities, and for internal IT organizations to strengthen their business relevancy. To date, the pace of management innovations benefiting enterprise IT has grossly lagged behind innovations in the technology space. And arguably, the prevalent enterprise IT operating model is the weakest link in ongoing digital transformation, because many enterprises rely on outdated management practices and behaviors.

Think about data center or network consolidation, application rationalization, offshoring, outsourcing, workforce restructuring, shared services, discretionary spending restrictions and the like. Industry examples suggest that these levers have been mostly exploited, further savings are increasingly elusive, and overuse is counterproductive. Above all, they all focus on the input cost efficiency of IT, e.g., cost per labor-hour or cost per server. The input cost efficiency was a critical success factor in the industrial age, when scale and scope economies mattered the most. It is far less significant in the digital age due to the shifting focus on business outcomes through agility and speed. Understandably, the traditional levers are proven, broadly accepted, and within the comfort zones of existing management teams, but they are a major leadership and organizational distraction on the way to digital transformation. Consequently, the traditional cost-efficiency programs continue to capture significant executive mindshare at the expense of advancing innovative management practices.

Read Also:
5 Big Data Trends Impacting Financial Institutions in 2016

The traditional program and project management theory was designed for plan-driven waterfall projects. It consistently underperforms on agile initiatives due to its backward-looking management metrics and controls. When dealing with agile, what executives need to know is how much work is left, not how much work is done. The fixed sizes of teams and the flexible scope of agile development make it impossible to detect risks and issues on time. Consequently, agile program budgets and schedules don’t blow up but bleed insidiously. Programs with over 100 full-time employees are most vulnerable.

 



Data Science Congress 2017

5
Jun
2017
Data Science Congress 2017

20% off with code 7wdata_DSC2017

Read Also:
How Big Data is helping sports teams find the winning edge

AI Paris

6
Jun
2017
AI Paris

20% off with code AIP17-7WDATA-20

Read Also:
Data Governance Comes in All Shapes and Sizes

Chief Data Officer Summit San Francisco

7
Jun
2017
Chief Data Officer Summit San Francisco

$200 off with code DATA200

Read Also:
Why User Adoption was 2016’s Biggest Business Intelligence Challenge
Read Also:
5 Top Dividend Stocks in Artificial Intelligence -

Customer Analytics Innovation Summit Chicago

7
Jun
2017
Customer Analytics Innovation Summit Chicago

$200 off with code DATA200

Read Also:
How AI, IoT and cybersecurity will fuel growth for tech and media companies

HR & Workforce Analytics Innovation Summit 2017 London

12
Jun
2017
HR & Workforce Analytics Innovation Summit 2017 London

$200 off with code DATA200

Read Also:
Cloud computing delivers on outsourcing's promise of cost savings

Leave a Reply

Your email address will not be published. Required fields are marked *