In the Digital economy, IT needs to play a critical role that ever before in history. It needs to be perceived as an engine for constant value creation, innovation and differentiation. It needs to evolve from being a mere Cost Centre and Support entity to that of a predominant and viable unit of business. A business that can well manage itself and at the same time predict outcomes that it so desires for growth.
Enterprises are increasingly looking at holistic IT solutions towards meeting their “Digital” requirements. Now than ever before enterprises are hugely complex and beset with numerous problems related to lack of effective strategy, planning, architecture, IT procurement and fulfilment, contracts management to name a few. The key is to look at these problems in an integrated manner.
Applying the concepts of an integrated IT management model, it is possible to design a target operating model which can run the IT as a lean, efficient and cost effective business.
Digital Disruption and IT4IT
IT is undergoing a massive transformation from many directions. Newer challenges in form of Business Demands, Innovation & Continuous Value differentiation and Rapid Adoption of Digital Disruptors
· The demand for innovative and IP driven services shifting away from more traditional IT business models
· Co-creation of Value with customers, partners, suppliers and the other key stakeholders
· Software Defined Anything, IoT, Block chain, Big Data, API economy
· The adoption of Bi-modal IT or multispeed IT Delivery
IT4IT is increasingly being recognized as an enabler to transform IT into a future unit of digital business. It is technology and vendor neutral and can be leveraged to suit the needs of bimodal delivery. It is a prescriptive framework which promotes value creation through the service offerings across the IT value chain.
What is IT4IT
The Porter’s IT Value chain comprising of Plan-Build-Deliver-Run activities can be broken down into 4 key value streams. These are core to the business of IT and need to be managed holistically to deliver innovative and value added services. There are supporting activities for the core business of IT. These enable effectiveness and efficiency for the primary value streams. Each value stream is anchored by the 4 pillars of Service, Information, Functional and Integration models. It is through a combination of Service Model, Functional Model and Data Model that the seamless management of IT value chain activities can be obtained.
The activities of the 4 key IT value streams need to be modeled using data objects. Functional models help in designing the business capabilities of the IT business. And the integration model help in designing the right set of relationships between the data objects to enable the IT business to function seamlessly. The huge traceability data collected and analyzed across the IT streams leads to predicting business outcomes and giving business intelligence that in turn drive growth.
How will it help digital organizations
Redesigning IT as a Business with the IT4IT Reference Architecture enables improved services orchestration across IT value chain and continuous delivery of value added services.
· Provides End to End traceability between customer satisfaction index, operations, service delivery & fulfilment to IT service portfolio design
· It is able to forecast service demand and ensure balance with supply
· It frees up resources for Business Innovation
· It makes IT simplified and sustainable with less cost and high efficiency
· It is in complete alignment amongst top 4 business priorities by CIOs of today’s digital businesses as reported from the CIO survey by Deloitte ie Growth, Innovation, Performance