• Follow us

Internet

How cloud is redefining the relationship between Business and IT

Deciding to move your business to the cloud is a much more profound change that simply moving your infrastructure from where it is today to a cloud datacentre. It’s an opportunity to fundamentally re-evaluate your business model and goals and better align the business and technology teams. Looking at it as purely another technology project misses the point.

But whose responsibility is it to kickstart this more profound thinking? The IT department, given it’s a technology shift and they should be best placed to understand what the tech can do, or the business side of the organisation who understands where the business needs to go? After all, while the business team might not know what cloud can do, it certainly knows what it wants it to do if it is going to fulfil its purpose.

In truth, it’s neither. In this new age of differentiation through digital services, technology direction and high-level decisions must be discussed and made in the board room, with buy-in from both sides. That is why any organisation intent on becoming a digital-first, cloud-first business needs a first-class CIO on its board to educate and guide fellow board members.

The cloud operating model

Cloud, and the operating model that supports it, is focused on how to drive innovation inside an organisation – and how we continue to innovate once freed from the constraints of an on-site infrastructure. Priced by the minute or megabyte, cloud is quick and cheap to implement and, if you realise you have headed down the wrong path, it is equally easy to terminate.

That is why, when considering cloud, the first thing to think about is how quickly the organisation is changing. For example, is it persevering with unsuitable kit simply because the board is embarrassed to write it off before it has extracted its full perceived value? If so, the business is almost certainly losing more in revenue than it is saving.

Technology has no respect for tradition. There is no guarantee that what is successful today – and has been in the past – will continue to deliver in the future. The growing technological power that start-ups can access is increasing the number of competitors – both actual and potential – by the day. Existing organisations need to meet them head on, by relying less on business-as-usual and the hardware, software and services they already run, and instead adopting the same model as their emergent rivals: cloud.

Cloud is key

Traditionally, fundamental change on this scale has not been easy. Why? Because of the disconnect between the business aims and the IT capability. The business – by which I mean the commercial arm of the organisation – will often say, “wouldn’t it be great if we could do this”, to which IT would usually respond, “yes, it would, but we can’t because of reasons A, B and C”.

Most of the time, those reasons boil down to one thing: a drive to save money. IT has long been seen as a cost centre, and successful companies have traditionally been those that have minimised costs while maximising revenue. That model is increasingly irrelevant.

When contemplating cloud, there are several considerations including change, not costs, and the speed at which it is happening. Right now, that rate of change should be increasing. Ask how many transformation projects are ongoing within your organisation and how long it takes to deliver each one. When was the last time you launched a new digital product or service into the marketplace? Are you using cloud or on-premises kit? How leading- and bleeding-edge are your technology projects? Do you use five-year-old technology, two-year-old technology or six-month old technology?

This last point is particularly potent, as the more up-to-date technology a company is using, and the more risk it is taking in terms of that leading- and bleeding-edge kit, the more it will be setting up for success in the future. That is why it is important not to fixate purely on the bottom line.

Don’t ask how your cloud infrastructure is contributing to revenue, or even how it is helping reduce costs. Ask, instead, how it is keeping your organisation agile in an increasingly competitive environment. Then, ask how it is going to ensure you still have a business in 12 months’ time.

The grand bargain

This sounds like a big job, but actually, it is not. The review of your IT setup is actually a very small piece of work, and it should quickly become apparent whether the processes and technology you are using are functioning as they should. Nine times out of ten they won’t be. When this comes to light – and it will – you will understand that there is a better way of doing things, and then you can start redefining the relationship between the business and IT.

I sometimes describe this reckoning as a new ‘grand bargain’ between the two sides of the organisation, and one in which IT is given encouragement to innovate. It needs a reason to stop being the department that likes to say no, which can only happen both when it has support from the board, and representation on the board itself.

The metrics against which IT’s performance is judged must also be re-thought. When it is incentivised to propose change, it will bring new technologies to the organisation, and demonstrate to executives how the world in which they operate is changing all around them.

So, how does the organisation bring this about? It comes back to the idea of IT being a service centre, not just a support department like security, maintenance or the reception team. The business, meanwhile, is its client, to which it should be actively upselling the potential of the platform in which the company has chosen to invest. With 200-plus services available inside Azure alone, the potential here is beyond anything previously imaginable.

Giving IT this freedom is the most significant step an organisation can take towards becoming the next Netflix and, perhaps more importantly, avoiding the kinds of mistakes that would make it tomorrow’s Blockbuster.

Dan Scarfe, founder, New Signature UKImage source: Shutterstock/bluebay

Read More



Leave A Comment

More News

Latest ITProPortal news

Foxconn president resigns to run for office 2019-06-21 08:00:29He wants to focus on his presidential campaign.

Google confirms it's leaving the tablet business 2019-06-21 07:58:09It's throwing everything it has into the laptop business.

US city votes to pay ransomware demand 2019-06-21 07:30:31Riviera Beach can't catch a break.

iPaaS: The true digital transformation enabler 2019-06-21 07:00:33At the heart of any digital transformation project is the same principle – getting access to data and managing that data effectively.

5G can help start ups compete better 2019-06-21 06:30:585G could give birth to a whole new wave of start-up businesses, who would leverage the technology to compete better against well-established players i

Leaked passwords are only the tip of the 2019-06-21 06:30:45The true cause of the problem isn’t what one company does or doesn’t do with their security, but the underlying premise that personally id

The rise of voice commerce 2019-06-21 06:00:46This is a burgeoning trend that could be a huge market in the very near future.

IT issues creating workplace "black hole" 2019-06-21 06:00:33Employees are losing hours fixing stuff around the office.

GDPR compliance: is your business at risk of 2019-06-21 05:30:57Since the introduction of GDPR last year, small businesses have faced increased pressure to develop and alter their existing policies in line with the

How continuous deployment can help you keep pace 2019-06-21 05:00:10With every company now a software company, here's how continuous deployment makes you stand out from the crowd.

Keeping up with digital transformation: Is your ERP 2019-06-21 04:30:46Digital transformation need not be a scary term, but the foundation of your ERP strategy.

Why the jewellery sector is in major need 2019-06-21 04:00:07How blockchain and modern technology has helped to change the way the sector is functioning.

TechRadar: Internet news

Heads up, Mac gamers: big-time PC game port 2019-06-18 13:49:56Aspyr is ending sales of 32-bit titles as Apple discontinues 32-bit app support in the upcoming macOS Catatlina.

Cyberpunk 2077: release date, trailer and news 2019-06-18 13:26:57If you thought CD Projekt Red’s upcoming FPS RPG looked incredible before E3 2019, just wait until you see Keanu Reeves.

Animal Crossing on Nintendo Switch: release date, news 2019-06-18 13:06:19Animal Crossing: New Horizons isn't coming this year, but it's shaping up to be a totally unique experience.

These Huawei P30 Pro deals are now incredibly 2019-06-18 12:58:24One of the world's best phones at a great price - get a Huawei P30 Pro deal now and save some money, if you dare.

Australia vs Jamaica live stream: how to watch 2019-06-18 12:41:47Can the Matildas book their place in the Women's World Cup round of 16 with a win against the Reggae Girlz? Don't miss a kick with our Australia vs

Facebook WordPress plug-ins found to have zero-day flaw 2019-06-18 12:27:36Security researchers from Plugin Vulnerabilities have openly disclosed two zero-day flaws in Facebook's WordPress plugins, putting thousands of users

Expensive spectrum puts European 5G at risk 2019-06-18 11:58:13Recent spectrum auctions raise fears over rising costs

Best tablet 2019: the top tablets you can 2019-06-18 11:54:24The best tablets come from Apple, Google, and Microsoft, but not all are created equal. Here's what we like so far in 2019.

Amazon Prime Day deals 2019: everything you need 2019-06-18 11:52:04Amazon Prime Day is fast approaching, so we've put together a guide on how to find the best deals and everything else you need to know for the July s

EE now lets you watch BBC iPlayer and 2019-06-18 11:36:35EE users can now get some of the biggest data gobbling video players without data allowance with their mobile phone deal.

The 10 best cheap fitness trackers: the top 2019-06-18 11:21:31Wearable fitness trackers are smarter and cheaper then ever before, you don't have to spend as much to get fit.

The best free stock video sites 2019 2019-06-18 11:19:20Find high quality free stock video clips to use in all your projects – whether they're personal or commercial.

TechCrunch » Enterprise

Three years after moving off AWS, Dropbox infrastructure 2019-06-21 11:35:29Conventional wisdom would suggest that you close your data centers and move to the cloud, not the other way around, but in 2016 Dropbox undertook the

Get your early-bird tickets to TC Sessions: Enterprise 2019-06-20 16:00:41In a world where the enterprise market hovers around $500 billion in annual sales, is it any wonder that hundreds of enterprise startups launch into t

Transitioning from engineering to product with Adobe’s Anjul 2019-06-20 13:05:14Many roles inside of startups and tech companies are clear: marketers market, salespeople sell, engineers engineer. Then there are the roles like &ldq

Daily Crunch: Slack makes its Wall Street debut 2019-06-20 12:42:22The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox ever

Machine learning for everyone startup Intersect Labs launches 2019-06-20 12:30:02Machine learning is the holy grail of data analysis, but unfortunately, that holy grail oftentimes requires a PhD in Computer Science just to get star

Slack opens at $38.50, a pop of 48% 2019-06-20 12:12:38Slack, the workplace messaging platform that has helped define a key category of enterprise IT, made its debut as a public company today with a pop. T

The boring genius of how Atrium kills legal 2019-06-20 12:12:32Law firms have little incentive to build or buy software that will save their lawyers time because they often bill clients by the hour. Tasks like tra

GirlGaze Network looks to connect brands with female 2019-06-20 08:32:10It started with a hashtag. Amanda de Cadenet, photographer, author and TV host, was spending time with her sister, a director and photographer in her

SaaS data protection provider Druva nabs $130M, now 2019-06-20 07:07:34As businesses continue to move more of their computing and data to the cloud, one of the startups that has made a name for itself as a provider of clo

Text IQ, a machine learning platform for parsing 2019-06-19 10:37:30Text IQ, a machine learning system that parses and understands sensitive corporate data, has raised $12.6 million in Series A funding led by FirstMark

Postman raises $50 million to grow its API 2019-06-19 07:00:18Postman, a five-year-old startup that is attempting to simplify development, tests and management of APIs through its platform, has raised $50 million

Blue Prism acquires UK’s Thoughtonomy for up to 2019-06-19 02:56:19Robotic process automation — which lets organizations shift repetitive back-office tasks to machines to complete — has been a hot area of


Disclaimer and Notice:WorldProNews.com is not responsible of these news or any information published on this website.