Thursday, June 03, 2010

Making IT More Business Aware

One hangover from the pre e-revolution days is that in many companies, IT is still regarded as a support function. Sure, there has been a growing recognition of the business value of IT, and a strong trend to aligning IT strategies with corporate strategies, but there is still a residue (often large) of the old thinking.

Some companies, like Southwestern Airlines, Zappos and Vanguard have been doing it differently. The article referenced here is a summary of short case studies of those companies and what they are doing to integrate IT and their core business. One common feature for all three companies is that they have a process of job rotation between IT and line business functions. This has the effect of developing a strong business awareness among IT personnel about the business, the needs of customers and how to meet their needs more effectively. This knowledge translates into more effective IT applications. The companies use this and other means to ensure that all personnel are fully conversant with the business. As a result, there is less of an "us and them" attitude. All employees - IT and traditional line business - become part of the same group, with the same goals. The business is indistinguishable from the IT function.

Other elements also play a role in integrating IT and line business. These include a focus on corporate culture that encompasses innovation and a recognition of IT as an innovation driver.

Companies that can think outside the box should pay attention to what these companies are doing. There is much business advantage to gain from moving beyond the idea of business/IT alignment to one of business/IT integration. For an article on the subject companies, click this link.

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