{"id":53792,"date":"2014-04-16T08:39:19","date_gmt":"2014-04-16T13:39:19","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=53792"},"modified":"2014-04-16T20:59:14","modified_gmt":"2014-04-17T01:59:14","slug":"department-it-out","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2014\/04\/department-it-out\/","title":{"rendered":"Is the IT department, as we know it, on its way out?"},"content":{"rendered":"
Although IT is essential to most businesses, a recent survey by analyst firm, McKinsey, suggest that executives are becoming less satisfied with the role and performance of IT in their organisations. Could the IT department, as we know it, be on its way out?<\/em><\/p>\n Across virtually all organisations, regardless of size, Information Technology (IT) is critical, as it fosters productivity, communications, connectivity, and business efficiency, among other things. In larger organisations, it may be necessary to have a dedicated IT department to ensure those operations are being properly maintained and support the larger organisational goals and objectives.<\/p>\n However, the recently published findings of a McKinsey Global Survey on business and technology strategy<\/a> indicate that although business executives might appreciate the strategic value of their firm\u2019s IT departments, increasingly, they are having some difficulty with those departments’ role and performance. In this article, we highlight some of the key findings of the survey, along with changes that might be necessary to allow IT departments to thrive.<\/p>\n Traditionally, the primary purpose of IT (and consequently IT departments) has been as a cost centre \u2013 it costs a firm money to operate but does not contribute directly to the firm’s profit, which was corroborated by the results of earlier McKinsey surveys. However, in the most recent exercise<\/a>, respondents identified the following IT priorities in order of decreasing importance:<\/p>\n In light of those results, executives expect that in the short- to medium- term, spending on IT infrastructure will decrease. Instead, priority will be given to areas such as innovation and analytics, which have become major buzzwords globally, but also reflect the heightened environment that exists.<\/p>\n Although the strategic value of IT in organisations is not being disputed, respondents were less satisfied with the performance of IT departments than they had been in previous years. Having said this, there was some consensus that IT departments best facilitated organisations in matters related to (in order of decreasing importance):<\/p>\n Interestingly, IT executives were less conciliatory about IT departments than the overall pool of executives surveyed, which again was far less favourable than the results of earlier exercises. For example, IT executives were of the view that their departments were less effective in areas such as:<\/p>\n Overall, the general sentiment of the latest McKinsey survey appears to be that IT departments are not effective or as aligned with corporate needs and imperatives as they should be. Both IT and non-IT respondents were of the view that the most important ways of improving IT\u2019s performance were to:<\/p>\n Ironically, the above views and concerns are not unique. During the Analyst Keynote at Gartner Symposium\/ITxpo<\/a> held last October, Peter Sondergaard, Senior Vice President, Research, indicated that there was a crisis in IT leadership. Among other things, Gartner\u2019s investigations found that around half of the Chief Executive Officers surveyed wanted better direction from IT departments; but the Chief Information Officers were generally happy with the status quo. Ultimately, the role of IT personnel and departments is changing.<\/p>\n Historically, and as indicated earlier, IT was seen as a support service. IT was not invited to sit at the boardroom table to help shape an organisation\u2019s strategy, but instead, would be required to facilitate the agreed direction. Consequently, the emphasis in recruitment for IT \u2013 from the manager to the technicians \u2013 was, almost exclusively, on technical competence, but typically, with a silo approach: hardware; software; programming; etc.<\/p>\n It should therefore come as no surprise that although IT is now being invited to sit at the executive table, thanks to positions such as Chief Technology Officer, Chief Information Officer, and Chief Digital Officer, essentially, the skills and competencies in that department have not changed. Some of the reasons for this current and persistent situation include difficulty in finding, developing and retaining talent, especially since job descriptions must be broadened to include business experience, in addition to technical\/IT competence (Source: McKinsey<\/a>).\u00a0 As a result, and at least over the next year, organisations will be challenged to secure talent that can address priority areas such as analytics and data science, mobile and online development, enterprise application architecture, and cloud and distributed computing (Source: McKinsey<\/a>).<\/p>\n In summary, in order for IT departments and their staff to remain relevant to organisations, they must change to better align themselves with current needs and imperatives. Sadly, many managers and executives might realise that there is a problem, but may not fully appreciate that the entire ecosystem \u2013 including their own organisations, academia, and even the society at large \u2013 are yet to catch up with the demands of today\u2019s business.<\/p>\n <\/p>\nChanging priorities<\/h3>\n
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Have IT departments become stuck?<\/h3>\n
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What might be required to change the status quo?<\/h3>\n
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