Posted by: S R Balasubramanian
business IT alignment (BITA)
Use of IT in organizations is all pervasive. IT penetrates into every function and most users are dependent on IT systems in one way or another. It is not only large corporations today but the small and medium sector that are impacted by IT. Deployment and usage however differ from one organization to other. Large corporations often have high profile managers or hire consultants to help them strategize, plan and define a proper IT architecture for moving ahead. While some of the medium sized organizations too have a good set up, others stutter and struggle with their IT plans.
Lack of an enterprise approach
I have been associated with a few such organizations and I see the need for many of these companies to rework their approach and make IT work for business. This is more true of medium sized organizations which have grown in size to match their larger counterparts and small organizations that have expanded to come into the medium sized category. I see these companies struggle with their IT set up leading to a certain level of dissatisfaction at the management level. Though basic operations run well, expectations of the management are higher than what IT can deliver. Reasons for this situation are many but let me deal with a few.
Linear expansion of IT: As the business grows, IT heads add on more servers, storage, network equipment etc. for handling more users, larger data and to cater to additional traffic on the network. While some additions are in order, there comes a stage when the entire architecture needs a re-look. The IT capacity starts cracking at the seams and the IT man is left chasing the needs expressed by the business. For example tailor made applications become woefully inadequate but the CTO may take too long to make the required transition to newer software packages.
Lack of the required skill at the CTO/CIO level : Some of the companies I interacted with understood the inadequacies of the current set-up but could not proceed because the IT team with them did not have the required knowledge or skill to identify, evaluate and decide on newer and contemporary solutions. Quite often they are stranded and some of them are forced to consult external experts for help.
Maintaining status-quo: There are other CIOs who keep on giving various explanations to the management and try to maintain status-quo. They are rich with explanations why a new system will not apply to them and that their needs are very different from others or that if they make any change, much of the current investment would be laid to waste.
Budget constraints: A few other organizations get caught in a bad business cycle and decide against further investment in IT. Unfortunately IT gets the first kick during budget cuts and any talk of IT restructuring is deferred to a later date which is often indefinite. Surely management personnel here display a lack of appreciation for modernization at a time when the environment is moving ahead with increased automation.
When companies get into such a bind, they limp, stutter and fall and the same time lament the poor status of their IT which is of very little help to business. They may be right in many cases but in other case it is because of their own making. They have however, to move, take the right measures so that they correct the situation without much delay. Some of the steps that can be taken are :
Management should seek to understand : Awareness at the management level is crucial. CEOs in some of the companies are well updated of the situation and get into conversation with IT vendors and other experts but in many of the other companies, the awareness level is low. They need to open up to the market realities and come out of their conventional mindset. Cutting down the IT budget may be the easiest of things to do but they fail to realize the damage they do to the IT support that the organization needs to measure up to the competition.
Take external help: When requisite knowledge does not exist within, it makes sense to step out and tap experts who can advise the company of the right path to take and to guide the local IT team in implementing the new measures. Companies adopt various modes, they sometimes ask their main IT vendor to draw the right path, or hire a consulting organization or seek guidance of a known expert to take them through.
Management to participate or form a Steering Committee : It is not enough to just sanction budgets and give approval to projects. It is essential for the CEO to participate and monitor the progress of IT projects or set up a steering committee and place senior management personnel there to guide the teams to achieve the end result.