Here is another McKinsey report that complements the one I discussed on Monday, Accelerating the digitization of business processes. They recently discussed - Reinventing IT to support digitization. They write that, “more connected consumers, automated processes, and sophisticated analytics place unprecedented demands on IT functions. Many companies are struggling to cope, and they seek to deliver on new demands by adding piecemeal elements to their existing operations. Yet what’s really required is the reinvention of IT entirely.” However, this is not an easy task. I have found that there is too usually much vested interest in maintaining the fiefdoms and processes that support current IT management.
The increased digitization of business processes more sophisticated technology, greater IT delivery efficiency, and, most importantly, “digitization means that IT must prepare for much greater business engagement and oversight from senior management.” This last requirement is fundamental to any IT change but even more important when it comes to the transformation of business processes. Do not start with the technology.
McKinsey offers seven elements of a reinvented IT function. These include clear, central business leadership on digital business, agile development and rapid releases, rapid innovation architecture supported by stable services, and high-quality integrated data. To achieve these goals you need to combine a start-up mind-set with enterprise accountability and make IT a top business priority. There is much on the report on how to make this happen.