No Business without IT

Wanting to implement innovations quickly, companies often develop digital process inside the different departments without the adequate involvement of IT. This leads to isolated solutions within the organization. But solutions can only deliver true added value for the entire company if they can be scaled and integrated with each other.

The digital transformation has reached the company. However, departments often introduce SaaS-based applications on their own, or they develop their own solutions. This leads to the uncontrolled growth of incompatible systems.

This means that manual interfaces are required to exchange data, but they also represent a potential source of error. Therefore the systems should be integrated across the departments to warrant complete data integrity and availability.

In the case of a production company, this would allow customers to modify their product during the production process, actually see the progress and track the shipment in the web portal. The supplier management tool automatically receives data on current purchase orders and inventories. Supplier orders are automatically adjusted based on forecasts for product demand. And the development department always has access to current prices and production experience. The result: the cost-effective and efficient series production of individual products.

As a result, digitization requires a holistic approach for companies, their value chains and in particular their IT organizations. But IT must also accept and be allowed to practice this new role. In practice, it often finds itself trying to balance the requirements for rapid, efficient, agile, scalable and innovative digitization in the company with the growing IT independence of the various departments. These often view the IT organization as a hindrance, inflexible or old-fashioned. And so they go ahead and do their own thing - using Cloud services or external developers.

But it is exactly these types of isolated solutions that frequently lead to rising administrative expenses, more complexity and not least increased security risks, since the existing governance requirements and guidelines do not cover these cases. The result: Short-term solutions must be controlled again. This not only leads to lost investments but also unused IT solutions or even contractual dependencies on external providers.

Therefore the IT department (whether the other departments like or not) must strictly control the use of customized solutions and approaches during the digitization process. But by doing so, it cannot act primarily as a hindrance, but rather as the keeper and enabler of new business models. The IT department has several trump cards over its colleagues in the other departments: It focuses on what is good for the entire company and it has the flexibility to pro-actively find the required service providers. In addition, it can organize or manage tenders to negotiate the best terms with external providers.

To complete this transformation, IT departments must develop and pave the way for the future particularly with regard to the IT organization, business centricity and technology. They must assume responsibility for the scalability of the new digital solutions. In addition, they must ensure that processes are fully thought through, developed and automated, and that they can be integrated into the overall organization in a flexible and (if needed) agile manner.

This means: The processes in the IT department are increasingly changing in the direction of an agile collaboration with departments. Moreover, the IT team increasingly assumes advisory and managing functions.

In addition, interdisciplinary DevOps Teams in the IT department also help to increase software quality and availability and therefore customer satisfaction. Business Centricity must also be improved (or introduced), and a detailed understanding must be created for the company's business processes and value creation. To this end, the IT department must develop joint solutions with the other departments.

On the whole, it means that the existing employees in the IT department must increase their knowledge and skills for supporting business processes, because company-wide innovations require IT departments to take a close look at the new requirements and the associated fundamental technological developments, which promise a lot of added value for all departments today.

It is only by including these issues that IT has the flexibility to meet the requirements of the departments, while also guaranteeing the company's security and efficiency.