
Is Enterprise IT relevant in the As-a-Service World?


Mazen Baroudi, Managing Director, Accenture
According to recent research by Accenture Strategy, 77 percent of executives feel that their IT organization lacks the skill sets necessary for an as-a-service world, and almost 40 percent only involve IT when the as-a-service option has been or is being implemented. This raises the question: “Is enterprise IT still relevant in an as-a-service world, where services are available on demand, any time, on any device?”
With changes at the infrastructure, architectural, and operational levels, cloud is transforming the enterprise IT industry, and companies are transitioning to the cloud at a staggering rate. For example, according to IDC, the worldwide use of public cloud services will grow at a 19.4 percent annual rate over the next five years, from $70 billion in 2015 to more than $141 billion in 2019. That equates to six times the growth rate of enterprise IT spending as a whole.
These changes suggest that CIOs and other leaders have the opportunity to be key enablers and innovators in the migration to the as-a-service model. It also is incumbent on IT to make fundamental changes in both mindsets and skill sets so this opportunity can become a reality.
To succeed as a service broker, IT needs to assume a service-first outlook leveraging both internal and external service capabilities.
Is enterprise IT still relevant in an as-a-service world, where services are available on demand, any time, on any device?
Bypassing IT could pose a threat to business outcomes
According to Accenture’s data, 60 percent of executives believe IT today does not have a significant influence on their choice of an as-a-service provider. Rather than collaborating with IT, business unit leaders are increasingly contracting with cloud-based service providers—with or without the support of enterprise IT.Matthew Taylor, Managing Director, Accenture
Such workarounds could put a business in danger, especially at a time when risk management and governance are critical. In fact, data shows that more than half of the respondents are aware of the risks involved with bypassing IT—such as security, cost overruns and delayed delivery.
Enterprise IT has a critical balancing act here: enabling services and platforms that improve productivity while simultaneously protecting against fragmentation and security threats across the broader ecosystem.
Four ways to reinvent IT for the as-a-service era
Enterprise IT is at risk of being marginalized. But, rather than being overshadowed by as-a-service, IT must renew itself as a service broker, and regain the trust and confidence to be a player in this cloud-driven world.
Businesses that are strategic about IT, and that devote the necessary resources towards the digital transformation, will be better positioned for success. Below are four strategies for CIOs and business executives to consider:
1. Assess your IT organization: By self-testing the IT organization and its performance as a service provider, the CIO can better understand the company’s current situation and assess changes that need to be made.
2. Develop a startup mentality: In an as-a-service atmosphere, companies must adapt practices and modes of operation that enable them to move at the same speed as a startup, while leveraging their larger scale. Many components of a company’s operating model—such as processes, governance, KPIs, tools and organizational structures – will change considerably in an as-a-service environment.
3. Be a business enabler, not a blocker: While transitioning to a service-first mentality, it’s vital to nurture the disruptors and offer new business models, processes, tools and structures before the sustainers kill them off. This means adopting a technology-driven mindset that prioritizes revenue first and cost-takeout second.
4. Remember, you don’t own IT: No single company can act as a monopoly for all IT services, so changes in behavior, strategy and attitude must be made. IT should be viewed as an organization that can compete with other service providers for the same capabilities. At the same time, it can provide value to the business by implementing an effective governance structure to help the enterprise IT organization to drive business outcomes.
Rather than being diminished in importance by the as-a-service model, enterprise IT has an opportunity to reinvent itself as a service broker. In this new role, IT can protect the business, and help it achieve greater outcomes.
ON THE DECK
Featured Vendors
Retail Professional & IT Services Inc (RP&IT Services): Affordable IT Services for Retail Professionals
IntelliPoint Technologies: Efficient Operations through Network Automation and Cybersecurity Protection
VisiCore Technology Group, LLC: Certified Splunk Architects Offering Professional Consulting and Managed Services
Agile Transformation: Helping Organizational Leaders Transform their Culture to Healthy, High-Perfor
EDITOR'S PICK
Essential Technology Elements Necessary To Enable...
By Leni Kaufman, VP & CIO, Newport News Shipbuilding
Comparative Data Among Physician Peers
By George Evans, CIO, Singing River Health System
Monitoring Technologies Without Human Intervention
By John Kamin, EVP and CIO, Old National Bancorp
Unlocking the Value of Connected Cars
By Elliot Garbus, VP-IoT Solutions Group & GM-Automotive...
Digital Innovation Giving Rise to New Capabilities
By Gregory Morrison, SVP & CIO, Cox Enterprises
Staying Connected to Organizational Priorities is Vital...
By Alberto Ruocco, CIO, American Electric Power
Comprehensible Distribution of Training and Information...
By Sam Lamonica, CIO & VP Information Systems, Rosendin...
The Current Focus is On Comprehensive Solutions
By Sergey Cherkasov, CIO, PhosAgro
Big Data Analytics and Its Impact on the Supply Chain
By Pascal Becotte, MD-Global Supply Chain Practice for the...
Technology's Impact on Field Services
By Stephen Caulfield, Executive Director, Global Field...
Carmax, the Automobile Business with IT at the Core
By Shamim Mohammad, SVP & CIO, CarMax
The CIO's role in rethinking the scope of EPM for...
By Ronald Seymore, Managing Director, Enterprise Performance...
Driving Insurance Agent Productivity with Mobile and Big...
By Brad Bodell, SVP and CIO, CNO Financial Group, Inc.
Transformative Impact On The IT Landscape
By Jim Whitehurst, CEO, Red Hat
Get Ready for an IT Renaissance: Brought to You by Big...
By Clark Golestani, EVP and CIO, Merck
Four Initiatives Driving ECM Innovation
By Scott Craig, Vice President of Product Marketing, Lexmark...
Technology to Leverage and Enable
By Dave Kipe, SVP, Global Operations, Scholastic Inc.
By Meerah Rajavel, CIO, Forcepoint
AI is the New UI-AI + UX + DesignOps
By Amit Bahree, Executive, Global Technology and Innovation,...
Evolving Role of the CIO - Enabling Business Execution...
By Greg Tacchetti, CIO, State Auto Insurance
Read Also
Balancing Innovation and Standardization
Leveraging Quality Engineering and DevOps to thrive in the face of...
Pioneering the Future Through Technology Innovation
Reimagine Naval Power
The Shifting Enterprise Operating System Ecosystem Is Helping...
Digital TRANSFORMATION: Challenge the Status Quo, Be Disruptive.
