IT/Business alignment: why it’s different this time

Re-reading Nick’s piece on “digital transformation,” I like how he explains what’s new and different from past waves of IT innovation (lik ERP and econmerce), e.g.:

“Going digital results in an explosion in the amount of data you have. New channels of engagement between customers and organizations have resulted in new sources of information coming into the organization at speeds not seen before. In the past, customer interaction was mostly one-way – from the organization to the customer. Now it is about customer-directed, on-demand two-way engagement anywhere on any device. Customers want to communicate on their terms in their preferred channels. That causes organizations to have to transform the way they handle such information, since having a large call center may not be enough – or even that relevant in the future, given that so much communication will come via social media, in messages or increasingly via video. Add to that the explosion in information from Internet of Things (IoT) devices, and it’s pretty clear that the days of management by gut-feel and hunch are over, and data-driven decision-making is the only way to go.

And also, some numbers:

  • “Less than 25% of organizations that participated in a recent 451 Research survey (451 Research VoCUL, April 2016) said they had a well-defined formal digital transformation strategy. So we’re in the early stages of digital transformation, and there’s lots of work to be done.”
  • “Erik Brynjolfsson, Lorin Hitt and Heekyung Hellen Kim from MIT and University of Pennsylvania found that companies with data-driven decision environments have 5% higher productivity, 6% higher profit and up to 50% higher market value than other businesses.”
  • “Our research shows about 65% of IT decision-makers using agile methods and about 40% adopting DevOps today (VotE Software-Defined Infrastructure Q4 2015).”

Source: Digital transformation: the what, the why and the how

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