There is a theme gaining ground within IT organizations. In truth, there are a number of examples that support a common theme coming up for IT organizations. And this very theme will change the way solutions are built, configured, sold and used. Even the ecosystems and ancillary services will change. It also changes how we think, organize, lead and manage IT organizations. The theme is:
Just because you (IT) can do something does not mean you should.
Ironically, there are plenty of examples in the history of IT where the converse of this principle served IT well. Well, times have changed and so must the principles that govern the IT organization.
Take it to the customization of applications and you get this:
Just because IT can customize applications to the nth degree does not mean they necessarily should.
A great example of this is in the configuration and customization of applications. Just because IT could customize the heck out of it, should they have? Now, the argument often made here is that it provides some value, somewhere, either real or (more often) perceived. However, the reality is that it comes at a cost, sometimes, a very significant and real cost.
Making it real
Here is a real example that has played out time and time again. Take application XYZ. It is customized to the nth degree for ACME Company. Preferences are set, not necessarily because they should be, but rather because they could. Fast-forward a year or two. Now it is time to upgrade XYZ. The costs are significantly higher due to the customizations done. It requires more planning, more testing, more work all around. Were those costs justified by the benefit of the customizations? Typically not.
Now it is time to evaluate alternatives for XYZ. ACME builds a requirements document based on XYZ (including the myriad of customizations). Once the alternatives are matched against the requirements, the only solution that really fits the need is the incumbent. This approach actually gives significant weight to the incumbent solution therefore limiting alternatives.
These examples are not fictitious scenarios. They are very real and have played out in just about every organization I have come across. The lesson here is not that customizations should be avoided. The lesson is to limit customizations to only those necessary and provide significant value.
And the lesson goes beyond just configurations to understanding what IT’s true value is based on what they should and should not do.
Leveraging alternative approaches
Much is written about the value of new methodologies and technologies. Understanding IT’s true core value opportunity is paramount. The value proposition starts with understanding how the business operates. How does it make money? How does it spend money? Where are the opportunities for IT to contribute to these activities?
Every good strategy starts with a firm understanding of the ecosystem of the business. That is, how the company operates and it’s interactions. A good target that many are finding success with sits furthest away from the core company operations and therefore hardest to explain true business value…in business terms. For many, it starts with the data center and moves up the infrastructure stack. For a bit more detail: CIOs are getting out of the data center business.
Preparing for the future today
Is your IT organization ready for today? How prepared is your organization, processes and systems to handle real-time analytics? As companies consider how to engage customers from a mobile platform in real-time, the shift from batch-mode to real-time data analytics quickly takes shape. Yet many of the core systems and infrastructure are nowhere ready to take on the changing requirements.
Beyond data, are the systems ready to respond to the changing business climate? What is IT’s holistic cloud strategy? Is a DevOps methodology engaged? What about container-based architectures?
These are only a few of the core changes in play today…not in the future. If organizations are to keep up, they need to start making the evolutionary turn now.
Originally posted @ Gigaom Research 1/26/2015