IT Team As A Strategic Partner: Key To Business Innovation
An IT team, led by a visionary IT leader, can be more than just a support function; it can be a strategic partner that drives business growth. By integrating your IT team into strategic planning, you unlock potential for innovation and efficiency, making your business more competitive. I’ve seen how transforming the IT team’s role from a cost center to a strategic driver can lead to significant improvements in business outcomes. This shift not only optimizes operations but also positions the business to thrive in a competitive landscape. I’m Steve, a digital transformation expert with a strong background in electrical engineering, an MBA, and a master’s in Project Management. I excel at helping SMEs navigate the digital landscape with practical insights. Let’s begin! Understanding the Roles of the IT Team The IT team can wear many hats within an organization, each role defining the extent of its impact on business outcomes. From being a cost center to evolving into a strategic driver, the role of IT varies depending on how it’s perceived by senior leadership. IT as a Cost Center Traditionally, many companies, especially small businesses, view the IT department as a cost center. This means that the IT team is primarily seen as a necessary expense—its main function being to maintain current technology and ensure that the day-to-day operations run smoothly. Transactional Relationship with Management In this role, the relationship between IT and management is purely transactional. The IT team is tasked with implementing solutions that are often dictated from the top down. There’s little room for innovation or strategic input. I’ve seen this firsthand in several businesses I’ve consulted for, where IT was kept at arm’s length from any strategic decision-making. This leads to missed opportunities for leveraging technology to drive business growth. This transactional approach often overlooks the importance of maintaining relationships with existing partners and sponsors, which is crucial for long-term success. IT as an IT Provider Moving a step further, some businesses see their IT department as a provider of technology solutions. Here, IT isn’t just about keeping the lights on; it’s about enabling business needs and supporting various projects with the necessary tech resources. Medium-Term Objectives and Limitations However, even in this role, IT often remains largely reactive. The team may be allowed some degree of input and even permitted to experiment within certain limits. But the primary objective is still to meet the immediate and medium-term goals set by the business, without necessarily driving new strategies or innovations. This role reflects a scenario I encountered with a small e-commerce business, where IT was tasked with enhancing the website’s functionality but was not included in broader business planning. IT as a Strategic Partner Now, let’s talk about a role that truly unleashes the potential of the IT team: the strategic partner. Viewing the IT team as a strategic partner means recognizing the unique insights and capabilities that they bring to the table—insights that can shape the company’s future direction. Inclusion in Strategy Meetings In this role, the IT team isn’t just implementing someone else’s vision—they are actively involved in shaping it. Including the IT team in strategy meetings can be a game changer. Partnership leaders play a crucial role in ensuring that IT is included in these discussions, fostering a supportive corporate culture for effective strategic partnerships. When IT is part of the discussion, they can offer solutions that management might not even know are possible. I remember when I started including my IT lead in our strategy sessions; the ideas that emerged were game-changing, from automating marketing processes to improving customer experience through tech-driven solutions. IT as a Strategic Driver For businesses deeply rooted in technology, such as software companies, the IT team often takes on the role of a strategic driver. Here, IT doesn’t just support the business—it drives it. Risk-Taking and Innovation In this role, the IT team is encouraged to take risks and innovate. They’re not just maintaining current systems; they’re pushing the envelope to explore new technologies that could provide a competitive edge. This is particularly important in industries where technological advancements are rapid. Allowing the IT team the freedom to experiment can lead to breakthroughs that drive the entire business forward. For example, I’ve seen tech startups where the IT team’s ability to innovate was directly linked to the company’s growth and success. The Strategic Value of IT in Business Understanding the strategic value of IT is crucial for any business looking to stay competitive. IT is no longer just about keeping the systems running—it’s about driving business success through strategic use of technology. Technology as an Investment, Not an Expense One of the biggest shifts that needs to happen in small businesses is the perception of technology as an investment rather than an expense. This shift in mindset is critical. When I started viewing technology as an investment, I noticed that the return wasn’t just in improved efficiency, but in innovation and business growth. Investing in the right technology can lead to solutions that set your business apart from the competition. Developing a Digital Roadmap A digital roadmap is essential for aligning technology with your business goals. It’s about planning for the future and ensuring that your IT strategy supports your long-term objectives. In my experience, having a digital roadmap helped me stay focused on what mattered most, ensuring that our tech investments were not only effective but also aligned with our business strategy. A well-crafted digital roadmap is essential for managing strategic partnerships, ensuring that all technological initiatives are aligned with long-term business goals. Enhancing Customer Experience through IT Technology plays a pivotal role in improving customer experience. Whether it’s through automating customer service processes, enhancing your website’s user experience, or leveraging data analytics to understand customer behavior, IT can be a significant driver of customer satisfaction. I’ve seen firsthand how integrating IT into customer service strategies can lead to faster response times and more personalized service, which in turn boosts customer loyalty. Building
