The Transformation in an IT Organization

IT transformation is a complete reassessment and overhaul of an organization's information technology (IT) systems in order to improve the efficiency and delivery in a digital economy. IT Transformation Services forms the foundation of an organization's larger digital transformation strategy and is led by business leaders, such as the CIO. It can involve changes to -- and modernization of -- network architecture, hardware, software, IT service management, and how data is stored and accessed. Informally, IT transformation may be referred to as "rip and replace."

Organizations must take steps to keep pace with an increasingly digital and competitive market by not only optimizing existing systems, but also creating and acquiring new applications and services that generate deeper insights into their business, industry and customers. Many times, IT Transformation Services aims to change the IT department from being a reactive, inflexible organization to being a proactive, flexible part of the business that can respond quickly to changing digital business requirements and make more informed decisions.

According to Information Transformation Services, the ultimate goal of these efforts is to "reimagine IT development, delivery, and operating models, and to enhance IT's ability to collaborate effectively within the enterprise and beyond its traditional boundaries."

Expected benefits
Successful IT transformation builds a solid foundation infrastructure on which to deliver automated services, cloud computing and new operating models. It also automates and accelerates the deployment of IT services and reduces risk during deployments. IT transformation clears the path to delivering IT as a service that is more cost-effective, agile and helps foster innovation.

By optimizing traditional IT cost models, organizations free up IT budget from operational expenses and can designate more funds for digital transformation. IT transformation also ensures better business-IT alignment.

Any IT Transformation Services needs an effective strategy. It starts with developing a clear, coherent vision of the future state of IT and the business case for transforming IT. That vision must be developed with the input and sponsorship of senior management. Business and IT leaders also must define the foundational needs, scope and scale of the IT transformation project, including having a clear project timeline.

It's also important for organizations to define their approach to partnering and vendor management and have a person or team responsible for analyzing vendor and partner performance and suitability. Implementation methods are equally important, including proof-of-concept exercises, pilots and methods for quickly testing new technologies and their influence on business process.

IT transformation challenges
Many organizations were not born in the digital age, which means they're not afforded as much freedom to swiftly and completely rip and replace all existing IT systems. These organizations must grapple with legacy applications, systems and business models that constrain their ability to transform while strategist ways to incorporate modern technologies and approaches. This includes shifting budget and resources away from traditional IT and toward new digital transformation initiatives.

As with any large-scale organizational change, IT Transformation Services influences workflow, business rules and, perhaps most importantly, the corporate culture. Research firm Gartner recently identified culture as one of the top barriers CIOs must overcome to successfully transform an organization into a digital business. A unified vision of the organization's future state is essential, as is organization wide communication and training around new IT processes and technologies.