Many CIOs are replacing portfolios of discrete, siloed projects with product lines that enable a specific business capability. This move to product-centric organizations is something that we are hearing much more frequently from our contacts in the IT Leadership community. Here, we discuss four key factors driving the shift toward a product-centric IT operating model.
Need for Holistic Transformation
Historically, Information Technology Organizations have been structured into functions (Data Center/Infrastructure, IT Operations, Enterprise Applications, Data Analytics, Security, etc.) that have defined domains. Each of those domains is critical to the end result of delivering systems and services that enable the company to succeed, but this organizational structure of siloed functions is typically not optimized across all domains. Siloed functions have no place in the digital business world that thrives on integration of data and information across structure, culture, processes and technologies. To enable holistic transformation, organizations must draw a balance and establish cross-collaboration between organizational guidelines versus autonomy of teams for process, architecture, technology, tools, etc.
Lack of Alignment in Traditional IT Operating Models
Lack of alignment across large teams and multiple organizational groups (such as IT, finance and business) prevents organizations from executing an end-to-end digital strategy. Shifting to a product IT operating model can help steer organizational units toward a common goal. It can facilitate greater collaboration between different DevOps teams that support different products and domains. Recognizing the weaknesses of existing IT governance to achieve the pressing need for a shared digital transformation vision, IDC predicts 40% of CIOs will adopt new digital governance models.
Need for Speed
Most companies have found that their digitization efforts were hindered by inflexible or slow processes with a traditional IT operating model. Adopting a product-oriented management approach for IT can help organizations accelerate the delivery of new capabilities. According to IDC, 65% of CIOs will expand agile/DevOps practices into the wider business to achieve the velocity necessary for innovation, execution and change by 2021.
Lack of Integration Between Old and New Technologies
Lack of integration between new and existing technologies is a key factor that keeps organizations from realizing the full potential of digitization. Adopting a Product-Centric approach helps focus the need to integrate legacy and new technology platforms and applications in ways that best achieve the desired end-product. It does not remove the complexities of the actual integration but it does align incentives and objectives and can help eliminate the practice of building technology siloes around old technologies.
Navigating any shift in IT can be confusing. This is why a partner with vast technology expertise is critical, a partner that acts as an extension of your team. From services, to products, to education, a partner like Solutions II will give you a competitive advantage. For more information on our Adaptable Data Center® Framework, visit us here!