Rebooting IT Delivery: Balancing Cost Efficiencies with Agility to thrive in the Digital Age

Digitization is changing the rules of the game. It is disrupting businesses, lowering barriers to entry, and empowering customers. Swift delivery of new products and services supported by seamless digital experiences is no longer a nice to have.

08-Mar-2017

To stay relevant in this tough environment, organizations are looking to innovate and create new business models as well as products and services, while keeping their costs down. This new imperative is putting CxOs under immense pressure to balance innovation and agility with cost efficiency.

Why businesses must look beyond their existing old-school IT model

Centralized IT delivery models are quite common. There is no doubt that they offer significant benefits in terms of operational efficiencies and cost savings. Unfortunately, they do not have the ability to offer the flexibility and agility needed for innovation and speed-to-market in the digital world. Ring-fenced scope and large teams stifle creativity and scalability, making it difficult to drive digital enablement aimed at It’s time for organizations to consider new IT delivery models that are designed to cater to digital businesses, yet have the ability to work collaboratively with the exiting systems. This calls for the adoption of a bimodal approach - where CxOs have the support of nimble and customer-centric delivery teams alongside their conventional centralized model - to power digital initiatives, innovate, and steer the business in new directions.

How does a bimodal approach to IT delivery help businesses keep pace, drive change and consolidate their market position?

Organizations will need to complement their legacy technologies and existing IT delivery models with a decentralized model to completely rejig their business for a digital future. Doing so will help drive cross-unit collaboration and offer ways to build more flexibility and effectively manage uncertainties. This, in turn, will empower leadership teams to discover new opportunities, foster innovation and build capabilities, to not only meet present requirements but also future-proof the business.

How does a decentralized model deliver value? On the one hand, it aligns IT strategy and plans with the overall business objectives, and adopts a customer-oriented governance framework to execute PoCs and projects. On the other, it provides access to well-networked, self-organizing teams that are easy to mobilize for speedy ramp-up or ramp-down, in sync with business demands. All of these factors come together seamlessly to create a ‘Fleet-Footed’ approach that ultimately results in speedy project delivery, superior customer satisfaction, and successful business outcomes.

Underpinned by robust knowledge management, the decentralized model also offers high levels of transparency and flexibility. This, in turn, empowers CxOs to create, nurture and effectively manage the ever-changing ecosystems of technology, information and people - without having to completely replace the existing systems.

In essence, for businesses looking to become more nimble to stay relevant and deliver superior customer experiences in the digital world, the bimodal approach is the way to go. It helps accelerate change, manage uncertainties and improve responsiveness, while keeping the lights on.