Monday, March 18, 2013

Centralized IT - an obsolete notion?

Where do IT decisions now belong?
We are now into our second decade of the 21st century. This is the decade of social media, a BYOD in every pocket, of robust applications (very mature open source and proprietary solutions), of HTML5, IPv6 and the Internet of Everything. This is the decade when IT is in the plumbing of every organization, it’s the tick to their tock. Each organization has a unique need and use for advanced technologies, a requirement to power the business of their own IT DNA. But as we look around, many organizations are still functioning as if it’s Prince’s 1999.

Technology has not only changed in the last 13 years, it’s morphed and evolved into a new ubiquity. A good analogy might be the utility known as electricity. At the beginning of the 20th century, it was common for large businesses to have their own power plants. They had large organizations dedicated to maintaining generators and stringing lines to meet the demands of the manufacturing process. Today such a notion would be considered silly. Electricity became ubiquitous. There is now an outlet in the wall that you seldom give a second thought about.
I’m proposing that we are now in a similar place with IT here in the 21st century.

An obvious example is your Marketing department. Marketing has significantly different IT needs than even twelve months ago. Marketing needs to manage the enterprise’s web / portable / social network presence. This is about messaging, branding and customer contact. It’s about positioning and market share, it’s about outreach and inbound allegiance. It’s about communication. Both internal and external. It’s about being agile and responsive. The fact that these requirements are sitting upon an IT infrastructure is secondary. To use another utility analogy, IT is the plumbing – Marketing is the elaborate fountain display.

Or, what about Finance? Their IT needs have gotten as sophisticated and demanding as the Marketing arm. They have very unique requirements for government reporting, risk management, asset management, security, Human Resource Management as well as shareholder communications and financial management. Finance does not see the need to underwrite its own insurance, and seldom would they ever consider even owning a fleet of vehicles in this age. It’s the same as owning your own printing plant to print your annual report. Might be fun, but it does not make sense.

We could spend time in each department – and I propose that here in the 21st century we’d discover the same in each. Departmental demands are unique and becoming more so. Managing them from a central authority is not only no longer required, but is actually detrimental to being responsive in a fact (and fast) paced market. I believe being centralized impairs the ability to succeed.

So – here’s the point of discussion: instead of a central CIO – perhaps there should be a “Marketing Technology Subject Matter Expert”, and a “Finance Technology Subject Matter Expert”, “Operations Technology Subject Matter Expert” etc. who are responsible for assuring the departmental IT demands are being met. They also maintain a viewpoint into emerging systems that should be considered for incorporation into the departmental tool set, and are held accountable for the coordination of enterprise wide of technology decisions. Then there is an “Enterprise Security Expert” who is held accountable for maintaining security physical and virtual security – this function coordinates with all departmental SME’s.

I believe that this group of SME’s becomes a “virtual” CIO. The “utility” requirements are then outsourced to the cloud, or to the local electric utility, or the water company or….


"For first we use machines, then we wear machines, then we become machines."
Kim William Gordon
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