Monthly Research
& Market Commentary

Creating Value Through Technology Strategy

Identity/Strategy / 26 Aug 2016 / By Mike Bowden

I think it is clear to everyone by now that the world IT operates in is changing quickly, and perhaps the drivers of that change can be described like this:

Standardization, compliance, efficiency Innovation, empowerment, effectiveness
Waterfall, ordered, reactive Agile, iterative, proactive
Accounting, HR, Supply Chain Business model, product, service
Owned, on premise and on a desk Rented, outside the firewall and mobile
Disengaged stakeholders ‘Digital Natives’
Static ecosystems Industry disruption
Servers, networks, applications, users IOT, cloud, data, machines
Established suppliers New start-ups
Hierarchy Matrix

What we have to do as Business Relationship Managers (BRMs) is change our focus and the way we do things, to become Digital Business Leaders, moving from technology provider to business partner and peer.

Unit cost of IT, service level Increased revenue, reduced total delivered cost
Total cost of ownership Net Present Value
Architecture Strategy
Technology focus Business focus
Internal focus External focus
Controller Facilitator
Technologists Powerful, influential business leaders
Service integration Relationships

Perhaps the key change is from focusing on technology to focusing on business, and creating technology strategies that increase revenue, decrease company operating expense or improve asset utilization. In essence, to create sustainable positive cash flow.

How we do that is changing as well. In addition to the traditional back office value creation ‘hunting grounds’ – the stated business strategy or plan, reengineering transactional business process, automating operations, the business change agenda, Supply Chain, Finance, HR, and enabling the operating model – we need to start looking at the front office.

That means using technology to change the customer experience – creating a seamless multichannel route to market, completely reengineering the business model, adding technology to products and services, forming partnerships in your industry with potential disrupters, using analytics to gain insights about the way the market works or customer behaviour or simply better interactive marketing.

IT Relationship Managers must position themselves as leaders in this space, being able to draw direct connections between business strategy, technology implementation and value creation. As part of that, we need to start differentiating between technology that:

(a) Changes the business (model, product or service).

(b) Drives business improvement.

(c) Does not differentiate the enterprise vs the competition.

We need to lead a conversation about (a) and (b) with our business partners so they are also focused here and not, as traditionally they have been, on (c).


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21st Century
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