IT Business Model Dynamics
October 12, 2015 Leave a comment
This past decade IT organizations have been challenged by executives to demonstrate business value. After years of budget crunches and pushes to show ROI on every line item Executives are questioning whether their IT organization provide value to the business or should these organizations be dissolved in favor of purchasing cloud services.
The problem for IT is as a function they have not focused on identifying and creating business value. This may have to do with its origins as a service and expense. Thus understanding how IT contributes to business value has not traditionally been a high priority as much as dealing with ever increasing demand and a shrinking budget to service such.
However, for IT to contribute to business value the organization needs to overcome three major problems: Alignment, Prioritization, and Interdependency. Solving for these design constraints can be challenging. However, if one applies system engineering methods a optimization of the business model and its implementation can be achieved. This though is not a design once, build one, operate forever endeavor. As with the Enterprise conditions change and IT organizations will need to be more agile in more than creating IT functionality.