The next frontier in IT Strategy: A McKinsey Survey
July 29, 2007 by Raj Sheelvant
Valuable survey by McKinsey titled “The next frontier in IT Strategy“. Senior IT executives now believe that they are successfully aligning IT strategy with the needs of businesses they serve. Finally, IT executives are collaborating with business organizations to identify ways to make IT add business value. It’s a sign that displays IT departments are moving away from tactical IT infrastructure management. Though IT infrastructure is important, from business organization’s perspective, infrastructure management itself is a cost overhead. With that mind set, there is always a pressure to drive down IT costs. Only when IT plays an important role in enabling business strategy, it will have a greater chance of getting better funding. IT department can also ascertain gravitas in the boardroom in getting the right resources for innovations.
IT can and must play an important role in aligning with the organization’s business strategy for it to be relevant. I am beginning to believe that tactical Infrastructure Management can be outsourced or a third party SaaS (Software as a Service) delivery model can be used. This will free up internal IT department to work on projects and applications that will create and sustain competitive advantage for their company. Ironically, trend makers in this case are SME organizations.
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