Strategic Technology Handbook: Digital Transformation Dissolves Organizational Silos

11/22/2017

business silosEarlier this year, the international IT association CompTIA released its “Building Digital Organizations” study. Researchers polled and interviewed business and technology professionals about different aspects of corporate evolution such as Digital Transformation.

“Companies today are blending the traditional view of IT as a tactical function with the perspective of technology as a strategic driver,” CompTIA researchers conclude. “While 43% of companies indicate that technology is an enabler for business process, 39% feel that they are using technology to drive business goals, such as enhancing efficiency or innovation.”

Indeed. Digital Transformation is dissolving traditional organizational silos once built around technology as IT leaders become business leaders and vice versa. Two trends provide evidence:

  • Line-of-Business (LoB) executives are playing a greater role in technology decisions
    “Line-of-business departments are playing a bigger role in the technology buying process, especially when it concerns applications and services related to mobile and collaborative technologies,” reports Baseline magazine contributor Eileen McCooey.
  • Big-time CIOs are playing a greater role in business decisions
    “Large companies, seeking to deepen their digital business, are adding CIOs to their boards at a much faster pace,” Steve Rosenbush reports in the Wall Street Journal’s CIO Journal newsletter. “About 30% of Fortune 100 companies had CIOs serving on their boards as of the end of 2016, a jump of 78% over the past two years, according to Craig Stephenson, a senior client partner and managing director of Korn Ferry’s North America CIO and CTO practice.”

CompTIA’s “Building Digital Organizations” study backs McCooey’s conclusion. When asked about “Top Strategic Goals for Organizations,” respondents to CompTIA’s surveyed answered this way:

  1. Enhancing efficiency [48%]
  2. Innovation [46%]
  3. Renewing/maintaining key customer accounts [42%]
  4. Identifying new customer segments [38%]
  5. Hiring skilled workers [38%]
  6. Launching new products/services [36%]

LoB executives arguably hold responsibility and accountability for each of the six objectives receiving the highest response rates. And the impact of McCooey’s “applications and services related to mobile and collaborative technologies” arguably is greatest on the front lines of business.

So, increasingly prevalent digital solutions are transforming once separate choices about business processes and business technologies into converged strategic decisions. Want more evidence? Consider more statistics from CompTIA’s research about business executives’ views of digital capabilities:

  • 43% Technology enables our business process
  • 39% We are using technology to drive business outcomes
  • 36% The technology function plays a critical role in strategy
  • 34% We are redefining our business thanks to technology
  • 30% We have strong collaboration between functions

There is one snag in this transformative digital success story: CompTIA found most companies do not feel “fully prepared” to enter today’s digital era. Which is another good reason many turn to us for support.

MSPs provide organizations the flexibility to supplement current IT staff to meet the technology demands of LOB executives. If needed, MSPs can provide a virtual CIO (vCIO) experience to top management by formulating strategic IT goals, planning the IT budget, analyzing and reworking business processes and facilitating technology changes.