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IT will transform or be transformed

Published: February 21 2012, 09:50 PM
by Robert Stroud

Imagine for a moment that you get on the plane after using a valuable upgrade to get into a nice seat with allegedly better service, free movies (that you have probably already seen), a choice of meals and folks that call you by name. Unfortunately, you quickly realize that your expectations may need to be lowered. The staff keep skipping past you to take every body else's order for the meal, skip you during the drink service and forget your name constantly, and the worst outcome of all -- they forget to turn on the entertainment system.

The good news is that you reach your destination safely and on time - very important - but only by sitting through 10 hours of shocking (in a bad way) customer service. After you have traveled for a while on a single airline or airline group you become a captive audience to that airline. So what do you do? You suffer through a few bad experiences calling the airline, writing some emails, posting some tweets and the response is simply promises of better service or some points to your frequent flyer account.

Parallel this to the way that many businesses feel about their IT service delivery. Imagine that the business doesn't get the level of agility it needs with change taking too long. There is too much perceived "process" which is exacerbated with poor or non existent communication with the business. The business perceives little or no value from IT, and simply views it as a necessary evil. Many organizations simply refer to IT as the office of "NO."

IT doesn't have to be this way and in short if we don't transform we will be transformed.

When I spoke recently in Europe at a series of Application Portfolio Management events, a large part of the time was spent on the transformation that is taking place in many organizations. The transformation is sometimes by choice and sometimes imposed. I spoke to the head of IT with a large multi-country company who shared with me a story about the demise of the large central IT organization. The experience with the IT department was so bad that the business started investing directly in its own IT, creating a "Shadow IT" department. This was done initially for development; then they added delivery; and after 18 months there was no requirement for central IT.

The organization didn't own a datacenter, all infrastructure was delivered by third parties and the business was managing the relationship with the suppliers closely and established contracts that allowed them to rapidly transition to an alternative supplier should the service not meet expectation.

Value propositions of IT were agility, end-user satisfaction, adoption of capability through growing market share all whilst the business was profitable. The response from IT to this delivery was defensive of course, asking internal audit to be involved to ensure that the correct checks and balances were in place, privacy laws were being complied with, data was secure, continuity requirements were in place and so on. After a few months of reviews and a few debates with the CIO, head of the business division, the CEO and the CFO, the outcome was an excellent for all involved. IT established an Office of the CIO in Group IT that set base guidance for security, data privacy, and retention and agreed to negotiate and monitor contracts with third party providers. The business was responsible for all development, meeting capability requirements and so on. The result? Capability was close to the business, the business was driving IT-enabled business value, the responsibilities for IT were clarified and a charge-back agreement for the services consumed was met.

Back to my airline experience, yes the experience is true and the outcome is that I am transforming myself to leverage significantly more virtual meetings. I have changed airlines and I have no issue using social media to communicate both my excellent and poor experiences.

So what do you think, are you transforming or will you find yourself transformed? Just call me Robert "Transformed" Stroud.

 

By: Robert Stroud
Robert Stroud serves as VP and as Service Management, Cloud Computing and Governance Evangelist at CA Technologies. Robert also serves as an International vice president of ISACA, is part of the Framework committee and was the former chair of the COBIT Steering Committee. Robert also serves on the itSMF...
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4 people have left comments:

It is truly amazing how so-called service organizations can forget their core reason for existence.

You talk about how the shadow IT organization didn't have it's own infrastructure, but I think it is worth emphasizing the point that this is one of the ways SaaS and Cloud computing are disruptive forces in IT. They make it possible for consumers (and LOB managers count in this context) to pick their own services without having it blessed by the 'officials' in IT. This is neither good nor bad by itself. But having IT lose its purpose just because it neglects to provide the level of service needed by their customers is a shame.

Posted by: Tim Rochte | February 22, 2012 1:44 AM

Absolutely agree both with your assessment of what needs to change and how the business are responding to it. It echoes what I am seeing in large clients with a changed dynamic between the business, the internal IT department and key suppliers. Internal IT can try and stand in the way of this, or find a role in facilitating it. Before choosing to stand in the way it would do them good to remember why the business are adopting this strategy.

Posted by: James Finister | February 22, 2012 3:05 AM

Tim,

My thoughts echo those of several of the analyst firms that believe that many enterprises will no longer have any infrastructure under their direct control by 2020. This will allow the IT capability, where ever it is delivered to focus on service capability, how it is sourced, delivered and managed, in short service quality, quantity and price.  SaaS and Cloud are accelerating the adoption as IT must be nimble and move at the speed of business.

What changes are you seeing?

Posted by: Robert E Stroud | February 22, 2012 9:18 AM

Jim.

Thanks for the comments. I know we in IT have the best of intentions but not always the best of communication skills.

Rob

Posted by: Robert E Stroud | February 22, 2012 9:20 AM

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