Digital transformation is seeing unprecedented investment across businesses. The last couple of months have ushered in more growth in digital transformation than we have seen in the past couple of years. This is a result of the rise of digital commerce, contactless and remote customer relationship management, remote learning and working from home.
While the prevailing situation may be driving this technology adoption, it is critical to check whether the IT culture of the organisation is aligned to the business need to sustain this acceleration in digital transformation.
According to Gartner, “To develop a digitally mature IT organisational culture, CIOs should first level-set on how responsive their IT teams are to the following four key components of the business model and its corresponding business strategy”. The components are:
Customers: How knowledgeable is the IT department about their external customers, the industry they represent and the other factors that affect them? How do they respond to customers?
Value proposition: Does the IT organisation understand the complete value proposition of the organisation’s product or service?
Capabilities: Does the IT department asses, prepare and measures its capabilities? (Information, technology, people, skills, assets, ecosystem stakeholders)
Finance: Does the IT department know about the overall enterprise finances (revenue sources, costs, risks, funding model, financial KPIs).
Equally important is to measure the IT function’s cultural maturity. Gartner’s assessment tool measures cultural maturity on the following scale:
Once the IT function’s degree of alignment with the business model is assessed and the cultural maturity mapped, CIO’s can then work on the improvement path for the IT department. Such an approach will ensure there is steady progress and continued momentum in the digital transformation journey.
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