IT Must Move Forward

The challenge facing the IT department is not just to transform its own culture into one that acts like a business, but also to develop meaningful dialog with the business side, and influence with the entire Chief Officer suite.

In sympathy with the task, it can be said in passing that IT’s challenge – listening to and solving the problems of its “customers” the stakeholders in the enterprise – has not yet been mastered by those “customers” themselves in their dealings with the real-world customers of the typical corporation.

The business of running a company is complex, and difficult. Executives will not willingly undertake an effort they perceive as blind risk. Much of the time what is perceived as resistance to change is simply requiring the right tools to move forward successfully.

“One of the key values behind an Enterprise Decision Management approach is that of managing decisions as a corporate asset. When customers interact with you they consider every decision you take to be a corporate one – that is, a deliberate one. Thus if your website, your call center or your agents make a poor decision, an inconsistent decision or an out of date decision, it reflects on your whole organization. Yet, every day you must make decisions faster, across more channels and product lines.” – Managing decisions as a corporate asset

Yet beyond this, the decision-making layer can also be dysfunctional in terms of effective process: internal communication can often be sparse or in the extreme non-existent.

“the problem lies in departments with conflicting motivations and targets, incompatible processes and individuals feeling that they can’t change things. Throw in some business process outsourcing, a general unwillingness to carry the can and changing business practices – and you have a recipe for the unconnected enterprise.” – Why Don’t We Talk Anymore?

IT’s goal is to enable the CIO or CTO to bring maximum intelligence, reasoning, and planning to the table, in packages that speak to business issues in their own terms.

So, as IT reshapes its own processes for decision-making, portfolio management, and forward-thinking brainstorming, it must also begin to learn how the top layer thinks, decides, and acts – and what it wants. The greatest help here will come from the free flow of information through the management layers.

Modern Web 2.0 social media for collaboration and knowledge sharing – tools such as collaboration studios, wikis, discussion boards, messaging systems, and blogs – are the tools that encourage knowledge to rise to the surface. Accurate knowledge of the enterprise is IT’s greatest lever to manage its own future, and to contribute survival positioning to the company.

The Economist has found that a majority of CEOs are enthusiastic for Web 2.0 tools, but McKinsey finds that implementation plans are lukewarm.

“A decade ago, the IT department drove investments in most new technologies. Now, these tools are just as likely to bubble up from other departments. ‘Corporate strategy can define technology strategy,’ says Bughin.” – Executives Remain Wary of Web 2.0

This is the great danger perceived in the coming of Enterprise 2.0: that it will overwhelm IT’s security and orderly planning because, from the small footprints of the new tools, technology adoption is becoming decentralized. The enterprise, without IT’s energetic sponsorship of Enterprise 2.0, could fragment into knowledge chaos, or else rewire the entire company circumventing IT.

IT should begin developing strategies for implementing internal social media systems. No one is better positioned than IT to free the flow of communication within its organization. The failure to act may render IT irrelevant, and the rewards are everything.

Published Thursday, May 10, 2007 5:29 PM
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