In my last post “Holding the Candlelight Vigil for Traditional Enterprise Architecture and Traditional IT” I shared my views on how Business Technology is heralding a new way of conducting  IT business, resulting in an urgent need for traditional IT and Enterprise Architecture to transform to meet this new reality.

There is a lot of buzz around the term “World Class IT” especially in the analyst world, where we see articles and discussions about Benchmarking Enterprise Performance Management and the linkage to World Class IT. Many large companies are reorganizing their internal IT based on these studies.

What do you think are the attributes of World Class IT?

Here is my list of attributes to start

  1. IT Organizations that enable creation, propagation and optimization of knowledge through knowledge networks, hire/train/retain World Class IT People, and enable, empower and motivate them to collaborate and participate in a shared enterprise vision. I see more organizations adopting the Daniel Pink Motivational Model providing their employees more Autonomy, Mastery & Purpose
  2. IT Organizations that focus on continuous  business value delivery ensuring that
    • IT delivers the promised benefits against the business vision, goals and strategy
    • Focusing on optimizing costs and delivering the intrinsic value of technology ( both front office and back office) through effective management of projects and effective management of legacy IT (core) assets
    • Creating a portfolio with a mix of emerging Information Technology (IT) /Business Technology (BT) aimed at sustainable value realization
  3. IT Organizations that adopt
    • Holistic, strategic and integrated Risk Management approach around technology
    • A practice of understanding of the enterprise’s appetite for risk, understanding compliance requirements, and develop an ability to envision and manage emerging threats and enterprise security mandates.
    • Transparency around managing the significant technology risks to the enterprise and communicating the technology risk to the stakeholders, and around embedding of enterprise risk management responsibilities into the IT organization
    • Risk management policies aimed at the strategic intent of creating sustainable business value while not throttling innovation
  4. IT Organizations that strive for strategic alignment though building a sustainable partnership with business
  5. IT Organizations that strive for building a collaborative relationship with external partners (Customers, Suppliers, Regulators, etc) 

In a recent survey, CIOs were asked: “What is the likelihood that you will restructure your IT organization in the next one year and next 3 years?”

  • 23% of the respondents replied within one year
  • 46% of the respondents replied within the next 3 yearsMbr />

Do you think most CIOs will get it right this time? Will they slowly wean away from Controlling Technology towards and advisory role that enables and Guides Business Technology?

Enterprises will start moving towards one the four emerging Information Technology (IT) /Business Technology (BT) models based on the management control that the CEO/CIO wants to implement. (From High Control to Low Control)

  • The Enhanced Traditional IT model – The COBIT (ISACA) Model – Plan – Build -Run – Monitor
  • Industrialized Business Technology Model – Powered by IT – Where IT provides high-value services built on a solid foundation/framework of Integration patterns to achieve consistency and scalability with control.
  • Embedded Information Technology in Business Technology Model- To increase speed and agility by providing specific technology skills for individual Business driven Technology initiatives, example ERP implementations.
  • Empowered Business Technology Model – Where Information Technology and the CIO play a advisory, coach, referee and oversight role – Define the guardrails, and guide technology initiatives for Enterprise goals.

At the center of this transformation and metamorphosis model is Governance, Risk and Compliance capabilities.