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WHY IT SERVICE MANAGEMENT? February 11, 2010

WHY BOTHER ?

Everything works okay doesn’t it? Modern businesses require up-to-date computer systems which are flexible, adaptable and efficient. Businesses need to utilise a range of technical and business-orientated skills to consistently evaluate the use of the latest technical developments using the latest techniques.

Keeping abreast of recent technological developments is challenging for technologists. Research can be a time-consuming activity, and experimentation is not always possible.

THE ALIGNMENT TRAP

Within the IT industry, there is a growing problem known as the “alignment trap”. Research undertaken by MIT Sloan in the United States which was a survey of more than 500 senior business and technology executives worldwide, followed up with in-depth interviews of 30 CIOs, reveals a troubling pattern:

“Those IT systems which are directly embedded into business performance sometimes go astray and IT departments can be stuck in the maintenance zone leaving little time for strategic or pro-active operational/ tactical management. Corporate management budgets for the amounts necessary to keep the systems running, but IT doesn’t offer enough added value to the business and often isn’t expected to.”

The alignment trap is problematic for business executives and the IT industry. Dealing with it won’t be easy. What is required, and examples of this exist, is to embed a culture of managing complexity down, sourcing IT resources (staff, software and hardware) wherever it makes sense and create start-to-finish accountability connected to business results. This allows for alignment of the entire IT organization to the strategic objectives of the overall business. Using governance that crosses organizational lines and making business objectives responsible for key IT initiatives. In conceptual terms this is addressing the mystical middle ground between IT and the business.

Process management for IT systems has been around since the 1980s and IT good practice methods are successfully being used in the public and private sectors world-wide. Over 75% if the FTSE 100 companies in the UK deploy them. Historically those interested in IT have developed sophisticated technical skills which are “fit for purpose”. Developing more business orientated skills is increasingly taking place. The role of the Chief Information Officer is undergoing a subtle change. Expected to be more “business savvy”, they need to evolve their skills to provide different leadership ideologies.

BEYOND TECHNO-CENTRIC

The pervasive nature of technology has created a hiatus of understanding by business of the real potential of IT-based systems. To further complicate this, IT middle and higher managers have usually been promoted from technical positions, which have given a techno-centric feel to the IT decision making process. Emerging technologies and the impact on their business will further add to the worry of business managers.

Question: How can this evolve to be a more collaborative business/IT endeavor?

Perhaps the management of IT through Service Management Practices.

One approach would be to see IT as a distinct group within the business rather than a function alongside it. IT departments would then be more market orientated and be:

• market driven;

• able to tap into diverse opportunities;

• developing a set of products and services;

• providing end-to-end production line;

• efficient and effective at utilizing resources (staff, skills, technology);

• Identifying costs of production.

Technology is pervasive in all aspects of modern life. Understanding and exploiting the technology for business-driven criteria will be the next challenge.