Digital Transformation affects three key areas of an organizations value proposition:
1. customer experience
2. operational excellence
3. business model transformation
In my experience is it’s a struggle.
The primary reason for this is that many CIO’s are distracted by the operational consequences of separately and independently procured IT services which, whilst reducing unit cost, have greatly increased operational complexity.
This complexity means the CIO is massively focused on the management of day to day operations and so is unable to devote the necessary time and resources to driving the organizations transformational activities.
Is there a solution?
Yes! But it is not straight forward.
Reducing the CIO’s operational headache requires a fundamental re-think about the way IT services are governed, managed and procured. In short a transformation in how IT works to serve the organization. The good news is there is a proven IT model that can readily be adopted, Service Integration.
Service Integration addresses head-on the operational dissonance, organizational misalignment and resource challenges. It does this by imposing a structured way of working which must be adhered to by all parties. Based on industry best practice it unambiguously defines the functional and operational accountabilities and responsibilities between the CIO, all service providers (internal and external), and the business.
Service Integration standardises how things are done, how performance is measured and ensures service are integrated end-to-end. It enables control to be established, change speeded up, fast on-boarding of new suppliers, off-boarding retired suppliers, and waste squeezed out of the system.
In summary Service Integration provides the CIO with the flexible, efficient and adaptable service based way of working required to underpin the organisations Digital Transformation aspirations.
And there is an additional benefit…
Analysts suggest between 5% and 10% of the IT budget can be saved if the IT department operated in a Service Integration like fashion making the CIO a key financial contributor to funding the organisations Digital journey.