6 Reasons for the Gap between the Business and IT that are Holding Back Your Digital Transformation

The Land of Digital Transformation Utopia

1. Conflicting Objectives and Strategies

In most large organizations, IT and other company business groups evolve in separate but necessary directions in order to accomplish what that division is tasked to. The IT group focuses more on the basic IT hierarchy as it relates to the needs on the overall business (network, security, email, hardware, software, back and front office, etc.). Business groups evolve to solve the needs the customers (marketing, products, services ¬– e.g. consumer value). Based on this simple description, it would seem that both groups work together in a sort of layered or tiered model, with IT supporting the business and business supporting the customers. In reality, this is usually not the case. What you often find are silos where everyone is working on their own projects with little collaboration with other groups.

2. Different Priorities

Business and IT inherently have different priorities given their perspective with the organization. IT’s basic function is tech stability whereas the business is focused on bringing new revenue and even disrupting current tech to make way for innovative ways to serve customers. This is where we typically see conflicts with the organization with finger-pointing on failed or delayed initiatives (“IT is holding us back” or “the business needs to understand this IT program is a critical initiative”). So how do we bridge the divide with not only different, but also conflicting priorities?

3. Different Definitions of Measurement

Having spent a number of years in IT before moving on to management consulting and digital marketing of enterprise retail, I understand that different groups across an organization will define and measure success based on their own objectives within the organization. The IT team normally measure success in terms of the technology (uptime, page speed, bps) or project implementation (time, budget, scope). The business teams attempt to measure success in terms of business drivers cost reduction, revenue, leads, and profit. However, when IT and business groups come together to achieve a common goal such as digital transformation, their needs to be common criteria to define and measure success. From cloud migration to API implementation, success lies in the initial rounds of communication can ensure that end goals and KPIs are met.

4. Lack of Customer Understanding

Have you ever filled out an online survey or given feedback on the user experience on a website? If so, there is a very high probability that your feedback was presented to a few stakeholders in marketing, but never made it past that single presentation. When the planning for the next redesign or product iteration begins, all of that valuable customer feedback is either forgotten or deprioritized in favor of other stakeholder requests (executives, senior managers, and more). What is needed to solve this problem is a simple process to ensure that customer feedback flows into the release planning for the future enhancements. If these are paying customers, then their feedback should get pushed to the top of the list at least for a proper review.

5. Too Many Silos and “Fiefdoms”

Maybe it is my background of working with the military and law enforcement throughout my career, but I found myself accustomed to always have a senior officer, commander, or even civilian manager that could resolve disputes between two different but equal groups. In the private sector, this is a luxury that I sometimes miss dearly. The many siloed organizations; the fiefdoms that spring up to protect a manager or executive’s personal priorities are the very obstacles that block true digital transformation as these fiefdoms fight progress for the whole in favor of the status quo for the few. Until these silos are knocked down, true progress cannot be made to bring an organization into a digital 21st century. In many cases, the only option is to spin out a “tiger team” that is completely separate from the larger organization to is then capable of delivering the true promise of digital transformation.

6. Access to Data and Services via Simple/Easy-to-Use APIs

In looking at the success digital and tech projects that I have led and been at part of throughout my career, I can see a common thread across all of them: access to data via easy, simple APIs. This allowed our teams to quickly prototype ideas throwing out the bad and keeping what works for continual improvement. The APIs were available with simple web-based documentation, there was no need to set up a project to access the API, and there were no “gatekeepers” exercising an API tax (this is more common in larger organizations and one of the main causes of failed integration projects).

Bio:

Daniel is a digital consultant specializing in IT advisory on technology strategy, investment, and implementation. He helps companies solve complex and strategic problems across multiple industries and domains. His drive to find solutions for clients and attain personal growth for himself are what keeps him at the forefront of innovation and helps him guide teams and organizations to cultivate amazing products and services. Given his thought leadership, engineering experience, innate ability to build relationships, and cultural interests, it’s not surprising that Daniel has been described as having “the mind of an engineer and the soul of an artist.”

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Father, husband, and tech advisor giving my unsolicited thoughts on tech, investing, public policy, and culture. @dewilliams

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Daniel E. Williams

Daniel E. Williams

Father, husband, and tech advisor giving my unsolicited thoughts on tech, investing, public policy, and culture. @dewilliams