What are the challenges facing IT today? (Part I)

In the midst of the current crisis IT organizations are facing new challenges as well as some age-old problems. Now more than ever, IT managers have to take into account factors such as:

• Value creation.
• Greater need for innovation.
• Constraints in time to market.
• Globalization.
• More demanding service levels.
• Dealing with rotation, hiring and outsourcing.
• Greater complexity in architecture, infrastructure and security.
• Reduced budgets.

In the beginning value creation using IT was more universally palpable. The idea of using computer systems to automate processes and reduce the duration and cost per transaction was the selling point. However it soon became clear that the human factor plays an important role in the definition and usage of computer systems. Without our participation and management, computer systems would be meaningless and ineffective. Endless implementation projects have become outdated and outright failed due to a lack of participation of their stakeholders. A focus on people and process as well as technology is vital to effective IT management. The dot com bubble clearly demonstrated that business models based mostly on technology are doomed to failure, to the point where technology on its own has been seen progressively less as a differentiator and more as a commodity. I think that as long as IT departments see themselves as just managing requirements around technology and not as strategic business units, then the perceived value will continue to be low.

Nevertheless the potential behind well implemented systems (with business users and process as the driving factor) is still great and can be a differentiator. I think that IT organizations always have an opportunity to help their businesses thrive and be competitive by introducing innovative solutions. These usually require new IT services, new processes and a different way of thinking. IT organizations have to be flexible in introducing new functionality while at the same time maintaining current services to agreed standards. In this sense change management must be a priority and business stakeholders are key to the implementation of the strategy driving the innovation effort.