What is IT Transformation?

By TechFunnel Contributors - Last Updated on May 27, 2020
IT transformation explained

IT transformation is the basis upon which a company’s bigger digital transformation(1) strategy is formed. It involves modifications to – and modernization of – network infrastructure, hardware components, software applications, management of IT service, and the mechanisms for data storage and accessibility. IT transformation is typically led by business executives such as the CIO.

Why IT Transformation is Essential for Business Growth

  1. The vast majority of individuals expect on-demand

    In today’s market, the larger proportion of customers desire to experience the exact kind of feeling in a professional setting that they get with the utilization of technology in their personal activities. However, this can be quite difficult for a business to achieve. This is why businesses are demanding for more hybrid IT solutions that will guarantee the right customer experience.

  2. Enhancement of staff effectiveness

    It is the ultimate objective of every business executive to maximize the productivity and effectiveness of the staff. This is why IT transformation is essential. It provides substantial solutions to important business operations such as finance and human resources.

    It helps to develop automated processes that influence manual processes that affect payroll. This, therefore, enables the business executives to concentrate on other business issues.

  3. Data Security

    This is an important issue that validates the need for IT transformation. It is the concern of many IT experts to store more data at the edge of their networks, while also guaranteeing the security of the data. It is needed for businesses that intend to execute a security strategy consistently across all applications, data, and networks.

  4. Supporting profitable partnerships

    The ever-increasing, tough competition within various business industries is causing companies to form some form of alliance. However, managing these partnerships calls for document-based communication.

    Typically, this process is strenuous and affects the rate of efficiency. But with the advent of IT transformation, it has become possible to redesign this process to enable a streamlined workflow that is more accurate, transparent, and timely.

  5. The capacity for better and faster decision making

    It is necessary in order for a business to leverage big data. Thanks to the Internet of Things (IoT), businesses can now easily access larger amounts of data than before. With IT transformation, these large volumes of data can be processed into useful business insights that can help to speed up decision-making processes.

Factors That Drive IT Transformation

  • As a result of a change in business

    It comes about as a result of the necessity to move the IT company to a new business model. In other cases, the need to explore new markets or launch new products also drives the process of IT transformation in an organization.

    If the business scope changes, then the approach to IT should also respond to business change. The ever-evolving business environment is therefore an important factor that necessitates IT transformation to enhance business agility and swift response to business changes.

  • As a result of changes in management authority

    Whenever a business experiences a change in leadership or management authority, the new leader would most likely make modifications to the whole business approach. With these modifications by the new CEO, it is necessary for IT transformation to follow.

    It is typical of CIOs to change the company they join. They tend to implement their personal leadership techniques. They usually modify the former structures to a model that they believe would bring increased effectiveness.

  • As a result of demands for efficiency

    CIOs are constantly under pressure to reduce costs. In order to achieve this, the implementation of IT transformation becomes necessary. This is justified on the premise that some IT solutions provide better cost graphs compared to others.

  • As a result of demands for effectiveness

    In a lot of cases, IT transformation is driven as a result of business-IT alignment. This is because significant changes in IT solutions are needed to tackle the business needs for more effectiveness.

  • As a result of mergers and acquisitions

    When two firms merge, a new organization is formed. With the birth of a new organization, there will be certain changes in administrative infrastructures, modes of operation, leadership positions, etc. The changes will, therefore, bring about IT transformation in one or both of the firms that are involved.

Effective IT Transformation Strategy

  • Develop a scale of preference for your IT pain points
  • Outline the requirements for application and workload activities
  • Select the necessary technologies that are important to workloads
  • Create a launching mechanism
  • The proper alignment for individuals, processes, and tradition
  • View information technology from a holistic and tactical perspective
  • Timely discipline and discovery
  • Ascertain board commitment and leadership

( Also Read: How Digital Transformation is Revolutionizing B2B Marketing )

Benefits of IT Transformation

  1. It helps to enhance better customer experience

    The experience of customers is central to IT. This is why it is the main objective is to use newer and modern technological innovations to enhance better customer experience.

    Statistics reported on digitalmarketinginstitute.com show that 92% of the business executives are implementing stable IT transformation techniques. They are doing this simply to improve the experience of their customers.

    Business analysts have conclusively stated that brand customers all over the world are obsessed with modern technology, social media, as well as applications that are designed to bring convenience to customers’ lifestyles.

    Customers will always demand value for their patronage. More importantly, they want it as quickly as possible. Hence, in order to maximize the benefits of IT transformation in regard to the enhancement of consumer customer experience, the following transformation processes have to be implemented:

    • Design a digitalized customer experience
    • Development of agility in the delivery of transformation processes
    • Heightened speed and agility in insights
    • Achievement of customer acceptance of digital customer experience.
  2. It encourages collaboration across departments

    With IT transformation, the employees from different departments in an organization will be able to communicate intelligently and learn together.

  3. It enhances agility and innovation

    It drives a business to improve and develop consistently within a swift pace. As a result of rapid transformation that comes with IT transformation, a business can keep up with new technologies, new competition, new trends, new tools, etc.

  4. It updates employees skillsets and knowledge

    The implementation of IT transformation is built upon the following skillsets:

    • Growth Hacking
    • Machine Learning
    • Days Analytics
    • Artificial Intelligence
    • Augmented Reality
    • Cloud Computing

    According to Altimeter, an estimate of 31% of organizations do not possess these necessary skills. Therefore, by embracing IT transformation, many organizations will equip their employees with this useful knowledge and skillsets.

  5. It enhances data-based insights

    Finally, an indispensable benefit of IT transformation is the ability to monitor metrics. It helps an organization to evaluate the data that has been gathered from digital marketing activities.

    Through the integration of data-based insights, a company can save more costs and generate higher revenue. This is because using data-based insights helps a company to understand the needs of the customers in order to generate essentiality and real-time feedback.

IT transformation challenges

  • The absence of flexibility in the technology stack and development process
  • It is typical for IT transformation to be faced with the issue of business resistance to change. Usually, a lot of individuals are often worried about the myriad of effects that IT transformation would have in their default “stable” life.
  • The absence of a clear vision for transformed customer experience. Usually, some organizations face a problem with having an excellent IT transformation because they have only painted a blurry vision of what they want.
  • Finally, the inability to effectively accumulate and leverage customer data is another hindrance to successful IT transformation.

Stages of IT Transformation: 10 Steps to Excel

  1. Envision a clear forecast of the future of IT transformation

    It is important to clearly envision and map out a realistic IT forecast that will be significant to your general business decisions. In the process of carrying out an effective IT transformation, it is important to state the business outcomes that you want to achieve through the transformation.

    Factors such as sponsorship, input, and support of the board of directors should be critically included in the vision.

  2. Define the business-IT relationship, administrative rules, and architecture.

    It is necessary that the relationship between IT and the organization should be officially defined. This will involve vividly laying out business and IT demand-management and decision-making strategies. This stage should be supervised by a single, delegated senior IT executive.

  3. Outline the primary necessities and scope

    This stage involves clarifying the stability of former underlying IT systems and competencies. Here, the scope and scale of the IT transformation should be conspicuously defined from the beginning.

    In order to record the successful, it is important to have an ideal understanding of the things that need to be carried out. Clarity can only be achieved when you develop a detailed plan of the forecasted modifications and a pellucid project timeline.

    It is necessary to adopt a consistent approach to every component involved in the IT transformation. These components could include data, business structure, infrastructure, and applications among others.

  4. Create a detailed IT transformation strategy and structured plans

    Furthermore, organizations should establish a project coordination department that will supervise the transformation processes. This office would be responsible for overseeing the implementation of decisions as well as monitoring the gradual results.

    Most importantly, it becomes the duty of this office to create a reliable strategy that would encompass every visible threat, business decisions, technologies, dependencies, etc.

  5. Make sure that there is an appropriate delegation of talents and leadership

    It is important to ensure that the right leadership is in place. Likewise, the right talents should be assigned the appropriate responsibilities.

    In order to ensure this step is in place, a senior executive should be put in charge of ensuring that the required transformation skills are employed in the right way.

  6. Outline the strategy for partnership and vendor management

    Indubitably, every transformation requires a solid vendor management system. This is necessary in order to evaluate the contributions of all the partners and vendors to the progress of the transformation.

    Businesses have to ensure that necessary vendors are available to occupy vacant positions and drive in the desired results and expertise.

  7. Make sure there is a consistent flow of investment funds

    What is IT transformation without sufficient funds? Funds are highly important in order to implement a successful IT transformation.

    This is why it is paramount to make sure that there is a consistent source of funding from the beginning and throughout the course of the transformation project.

    The lack of consistent investments will only cause the transformation processes to be disrupted. This will consequently affect the success rate of the IT transformation.

  8. Create a rigid implementation plan

    The methodology employed in the implementation of IT transformation is important. The methodology should be disciplined and not susceptible to constant interference.

    Key characteristics that should be taken into consideration involves application development, business architecture, and data administration processes. These methods should be closely and consistently monitored.

    In addition, the procedures for carrying out swift test-and-learn cycles on new technologies and processes should be available. This would also include pilots and proof-of-concept exercises.

  9. Develop an advanced risk management strategy

    The ability to effectively handle risks is important in achieving an excellent IT transformation. This stage would entail the ability to foresee short, medium, and long-term risks. It is important to continually ask the “what if?” questions.

    You should be able to predict the likelihood of events. More importantly, it is necessary to develop ready procedures for countering any potential risks.

  10. Direct motivation, team spirit, and change

    Lastly, the ability to manage the motivation and morale of every individual affected by the IT transformation is necessary. In order to achieve this, it is vital that you share the bigger picture and vision of the organization with all members of the staff.

    It is important that the team must be motivated to inculcate team spirit habits, as well as practicing effective communication skills. Conflict management skills are also necessary to make sure everyone works together to achieve the business vision.

Differences Between Digital Transformation & IT Transformation

Digital Transformation IT transformation
Digital transformation centers on the priorities of the customers It centers on the priorities of IT
A larger proportion of the business staff, vendors, partners, and even customers are concerned about digital transformation. The only individuals who are concerned about IT transformation are the members of IT
Digital transformation does not have a defined final outcome. This is because it is a continuous process that involves effective management of change over time. It has a clearly defined final state.
Digital transformation is an end-to-end transformation process that cuts across and affects all areas of an organization. This means the scope of digital transformation is broader. On the other hand, it involves a total modification of only the business information technology systems. This means the scope of IT transformation is relatively limited.

Final Thoughts

In conclusion, taking advantage of IT transformation can be just the right key to unlocking the limitless potentials of an organization. Why don’t you join the leading businesses in the world today by also leveraging on IT transformation?

TechFunnel Contributors | TechFunnel.com is an ambitious publication dedicated to the evolving landscape of marketing and technology in business and in life. We are dedicated to sharing unbiased information, research, and expert commentary that helps executives and professionals stay on top of the rapidly evolving marketplace, leverage technology for productivity, and add value to their knowledge base.

TechFunnel Contributors | TechFunnel.com is an ambitious publication dedicated to the evolving landscape of marketing and technology in business and in life. We are dedicate...

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