In the business of IT, it’s helpful to look at each piece separately….
The first part is about INFORMATION, which is key to running your business. Businesses with an IT department should be staffing functions that add value to the business.
These folks have titles like “Business Analyst”, “Application Specialist”, “Report Writer”, “Project Manager”, and so on.
What we see in most IT departments is actually, “desktop support specialist”, “system administrator”, and “network administrator”. The problem is that all activities performed here are related to TECHNOLOGY, not information.
The Business of IT: Standards
Technology is, by nature, standards-based and typically not very unique from one business to another. Don’t tell the IT group this!
When a business activity is standards-based and necessary, it is often outsourced.
Think about accounting, janitorial, logistics, and payroll.
These areas are needed for business operations but are not best handled in-house. Our accounting firm handles tax prep, FedEx, and UPS deliveries, and a payroll processor gets our people paid.
Building out the team, tools, and expertise in these areas is hard to justify for most businesses under 500 employees.
Technology is a critical component in today’s business operations but is not unique to any given business. What is unique is how a business utilizes INFORMATION to drive decision making and this cannot be outsourced.
When looking at the business of IT strategy, it is very helpful to separate the two components and remember:
Invest in Information and Transition Technology.
