Executive Viewpoints | The Power of IT as a Service - Insights into why and how to structure ITaaS plus 5 implications

18 Nov 2016
by Peter Bendor-Samuel
Organizations today are under pressure to develop greater business agility to sustain competitive advantage. And technology has the potential now to be even more powerful than in the past to change how organizations interact with customers, change supply chains and transform the business. But there is a significant gap between business users’ expectations and the reality of services delivered. This gap is a red flag for CIOs and IT organizations that traditional approaches to IT service delivery can no longer support modern business demands.

IT has increasingly become unaligned with the new business demands, thus creating the gap and dissatisfied business users. In IT’s relentless focus on operational excellence and cost reduction over the past years, IT departments became more efficient but, in the process, lost touch with business users’ shift to business value and cycle time as their core objectives. Business users reacted by purchasing Software-as-a-Service (SaaS) products to help achieve their desired business outcomes.

This paper will detail how to align IT and the business to maximize the value IT delivers to the business. The effort starts with reorganizing the IT department into services aligned with the business services. The resulting new structure is an IT-as-a-Service (ITaaS) model.

Understanding how to structure IT as a service is key to meeting business users’ objectives. What are the steps involved in navigating through this restructure? And what are the implications to IT and the business due to the reorganization? This paper lays out an approach, discussing why and how to switch to an IT-as-a-Service model. It also presents insights into the implications and challenges of going down the path of reorganization and realigning IT.

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