Less than half of IT budgets are spent on business growth and digital transformation projects. The bulk of IT budgets go on day-to-day activities – keeping-the-lights-on. When IT departments are running to stand still then it presents an opportunity for competitors to take advantage.
Ducks in a row
Today, digital transformation is fast becoming the number one priority for every organisation that wants to remain competitive. To succeed, digital transformation projects must be aligned with your business objectives and financial targets. You’ll need a clear roadmap or implantation plan, adequate budgets, defined milestones and deadlines. It’s also important the project is clearly endorsed by your senior management team and your plans are communicated across your business.
Where you are, where you’re going
It might seem an obvious thing to say, but your IT department must fully understand your business objectives and priorities in order deliver them. It’s surprisingly common to find IT departments that possess little understanding of what their company really wants or expects. Next, before you can start planning how to harness the power of IT for business transformation, it’s important to have a clear overview of your existing IT infrastructure and assets. Of course, IT and businesses don’t exist in a bubble, so it’s always worth spending some time considering how your industry might change in the future. What technologies are emerging, and how they might affect your plans?
Organisations that successfully align IT with business objectives stand a much better chance of beating the competition. When everyone across the organisation understands they are working towards the same goals, it can help resolve internal conflicts, bottlenecks and inertia. Ultimately, every IT project must contribute to creating business value.
Beast in the basement
Once consigned to the back office, basement and server room, IT has emerged into the daylight to become strategically important for most industries. Surely IT was always strategically important and a vital enabler of business transformation? Well, perhaps not. After all, around 80% of IT budgets are still spent on maintenance. Only 10% of IT leaders believe they are using innovation to drive competitive advantage. That’s why many organizations are rethinking their IT strategies and turning to managed services.
Moving to a managed service model for IT infrastructure essentially means outsourcing many of those keeping-the-lights-on activities to a third party specialist. The managed service provider (MSP) takes over your IT network, telephony and everyday tech support while your internal IT people focus their time and efforts on business transformation. As well as the strategic and operational business benefits, consuming your IT and telephony as a managed service has financial planning and tax benefits.
Learn more about the power of IT to transform your business by downloading our latest infographic.