Implement the Next-Generation IT Operating Model

The operating model for organizations embracing Exponential IT and transforming into technology-first enterprises.

Analyst Perspective

Be the organization that can thrive in an exponential IT world.

Carlene McCubbin Research Practice Lead CIO Organizational Transformation Practice Info-Tech Research Group	Brittany Lutes Research Director, CIO Organization Transformation Practice Info-Tech Research Group

IT leaders are increasingly expected to be responsible for understanding and delivering high-value customer experiences. This evolution depends on the distribution and oversight of IT capabilities that are embedded throughout the organizational structure.

Defining digital strategic objectives, establishing governance frameworks for an autonomous culture, and enabling the organization to act on insightful data are all impossible without a new way of operating that involves the oversight and accountability of advancing IT roles. Through exponential change, functional groups can lose clarity regarding their responsibilities, creating a sense of ambiguity and disorder.

But adopting a new way of working that supports an exponential IT organization does not have to be difficult. Leveraging Info-Tech Research Group's next-generation operating model, you can clearly demonstrate how the organization will collaborate to deliver on the various digital and IT services. This is no longer just an IT operating model, but a technology-first enterprise model.

Included in this blueprint:

Exponential IT Model

Defines how the Exponential IT model operates and delivers value to the organization.
This is done by exploring:

• Exponential IT cultural norms and behaviors
• Opportunities and risks of the Exponential IT model
• A breakdown of the embedded, integrated, and centralized aspects of the model
• Operating model value stream stages
• An assessment on whether the Exponential IT operating model is right for your organization

Changing Role of IT Leader

Defines how chief information officers (CIOs) can operate or elevate their role in this changing operating model.

• Identifies why the C-suite is changing – again
• How IT leaders should consider where they will add value in the new operating model
• Outlines examples of future organization-wide structures and where IT roles are positioned
• Supports IT leaders in developing themselves to operate in this structure

Executive Summary

Your Challenge

IT is challenged to change how it operates to better support evolving organizations. IT must:

• Consider the needs of customers, end users, and organization stakeholders simultaneously.
• Leverage resources strategically to support the various IT and digital services being offered.
• Create a digital services enablement office to design, monitor, and enhance services continuously.

While many organizations have projects that support a digital strategy, few have an operating model that supports this digital services strategy.

Common Obstacles

Organizations struggle to support the definition and ongoing maintenance of services because:

• The organization's Digital and IT services offerings are not clear.
• The functional team accountable to deliver on each IT or Digital service is ambiguous.
• There are insufficient resources to support all the IT and Digital services being offered.
• C-suite leaders required to support the services are missing or in the wrong role to effectively lead.
• Technology has not been standardized to ensure consistency and effectiveness.

Info-Tech's Approach

Embrace the IT operating model that focuses on the enablement and delivery of Digital and IT services by:

• Having technology stakeholders actively collaborate to decide on priorities and deliver on objectives.
• Leveraging data more effectively across the organization to understand and meet user needs.
• Ensuring technology architecture and security standards are well-established and followed by all throughout the organization.
• Allocating dedicated and skilled resources to ensure services can be continuously delivered.

Info-Tech Insight

The first IT operating model where customer engagement with IT and Digital Services is at the forefront.

What is an operating model?

An IT operating model is a visual representation of the way your IT organization will function using a clear and coherent blueprint. This visualization demonstrates how capabilities are organized and aligned to deliver on the business mission and strategic and technological objectives.

The should visualize the optimization and alignment of the IT organization to deliver the capabilities required to achieve business goals. Additionally, it should demonstrate the workflow so key stakeholders can understand where inputs flow in and outputs flow out of the IT organization. Investing time in the front-end to get the operating model right is critical. This will give you a framework to rationalize future organizational changes, allowing you to be more iterative and your model to change as the business changes.