Comments on IT centralization grows as approach to IT consolidationA SearchCIO.com blog2013-05-11T17:51:37Zhttp://itknowledgeexchange.techtarget.com/total-cio/it-centralization-grows-as-approach-to-it-consolidation/feed/atom/By: 41114111http://itknowledgeexchange.techtarget.com/total-cio/?p=578#comment-4422009-02-14T03:04:21Z2009-02-14T03:04:21ZYou both are correct and hit the right point. IT departments are both a key business enabler and a “true” business unit as part of the organisation. Over the years I have seen decisions made based on what is happening to the business itself e.g. market share changes, profitability, changes as a result of M&A and changes at the C-level. The debate should be focussed on the “total business value” that IT is delivering to the business bottom line.
Inherent in this discussion is achieving this outcome without compromising customer service (i.e. what and how IT services is delivered to the business areas). So one can see that demonstrating and delivering business value is of the first order while centralization vs. decentralization becomes a second order question. The challenge for us all is how we can easily quantify (both qualitative and quantitative) business value of IT and importantly, acceptable and valued by our business partners in the organisation.
]]>By: Anne McCroryAnne McCroryhttp://searchcio-midmarket.comhttp://itknowledgeexchange.techtarget.com/total-cio/?p=578#comment-4412009-02-13T19:53:55Z2009-02-13T19:53:55ZI don’t disagree that this is the pendulum swinging back to centralization, although from what I hear it’s been heading in that direction for some time. I do wonder if technology advancements like WAN acceleration and desktop virtualization mean a centralized (or more centralized) infrastructure is here to stay, and what that means for organizational structures. In any case, I would hope organizations would fully model any such disruptive change and implement it only if it meets multiple objectives, including not just savings and efficiency but value as well. .
]]>By: CfarrenCfarrenhttp://itknowledgeexchange.techtarget.com/total-cio/?p=578#comment-4402009-02-13T18:09:00Z2009-02-13T18:09:00ZAnne, while I agree IT centralization has huge cost savings potential there are so many other high impact savings opportunities that don’t involve disrupting the entire organization. I still see companies throwing money away but not managing their environments and their contracts (think of software…this alone is typically 30% or more of IT’s budget, and how few firms have that under control). IT centralization can save money, but it’s cyclical and in a few years they will move to de-centralization again because money is no longer the issue, service now is the flavor of the day. How about saving money in areas that don’t have to be cyclical?