The IT Function – still only cost center ?

From IT to Pivotal Function

Information Technology (IT) has quietly shifted from a cost center to a critical function driving revenue and sometimes innovation. It demonstrates an increasingly critical role in businesses, the “function” currently spans beyond business enablement and is evolving in to business revenue and market differentiation. This means re-thinking enterprises structures, budgets, talents, and processes. Technology is now critical for manifesting superior client experiences, The pressure on IT for faster and always-on services requires developers with a new understanding of business. The balance between cost and revenue demands new IT, leveraging services in combination with business

Creative blend of technology and nature with smartphone framing a bustling road through forest.

New and Required capabilities

The IT function was designed to balance two main objectives – scale and agility. Scale focuses on cost and business enablement, agility prioritizes the
development of revenue-growing technologies for specific business or client group. Each comes with implications on  processes. The distribution of capabilities varies in organizations, from centralized to distributed. We have come to depend on IT to be more reliable and therefore probably more distributed in the future.

Trends and new capabilities

We need to think in a few directions and models in IT and its core such as: 

  • Merge of technology and business
  • Technology deployment and de-comission which needs to happen faster 
  • The new wave of OpenSource and DIY 
  • Technology developing technology
  • Scarcity of resources, limiting companies to build 
  • Infrastructure as a bottleneck and anti-risk measure
  • Economy of tech and its possibilities
microphone, music, podcast

Join us on our next Meet-up for a deeper dive - stay tuned!

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