In our recent research, ALM Intelligence: IT Operations Consulting, we found that consulting firms are homing in on the need to reshape and transform the IT operating model. In fact, many consultants have said that there is more change in the last few years than they've seen over the last 10 to 15 years; with a clear digital agenda driving the need to change the more traditional stand-alone IT function into a tech function that is well-integrated across the enterprise deriving benefits of new technologies using different strategies and different skill sets.
Consultants we spoke with believe that over the next 3-5 years there will be a radical transformation of the role of the IT function and the role of the CIO; and that the emphasis should be on using technology operations as a key differentiator in complete alignment with overall business priorities and objectives. We've seen the beginnings of this with the operational aspect of IT concentrating agility and speed with DevOps and lean organizations becoming the new normal. But digital will now drive changes that holistically move the IT operating model to become more practical and sustainable.
Consulting firms are working with clients to reshape the IT operating model with varying approaches and capabilities: some bi-modal (maintaining back-end legacy systems for now while digitalizing front-end, customer-facing capabilities; some embracing digital across the entire enterprise; some technology neutral; some strategy through execution (including managed services); yet all acknowledge distinct change in the IT function and the evolving role of the CIO. There are usually several major legs of an IT transformation project including transforming the IT operating model, examining what the role of the CIO needs to be, and current workforce capabilities vs. future needs.
Transforming the IT operating model. Many consulting firms view the current IT operating model as unsustainable as there are too many interrelationships and funding issues that require a redesigned organizational design, different competencies and skill sets. In fact, several leading consulting firms no longer refer to the IT function as such, and look at it more as "Technology Operations" or a "Tech Function". Large scale IT transformation is occurring, and consulting firms are bringing capabilities by assessing ways of working (agile, DevOps, innovation), ways of using resources (workforce assessments, skills gaps, collaboration across the enterprise), and ways of using technology (RPA, cloud, automation, AI, analytics) for the IT service delivery model.
The CIO's evolving role. CIOs are at a cross-roads. Their role must become that of a strategic, digital and technical advisor working closely with C-suite executives, and ecosystem partners to advise on what technologies to develop and implement across the enterprise. There must be an increasing level of clarification, communication with the IT business taking ownership of certain integral services. The CIO must advise on robotics, AI, digital shared services and leverage digital in a go-to-market approach; all transforming the IT function into a technology function serving the enterprise and its customers. One consultant referred to the CIO role as evolving to a "stitcher" among executives and functions and customers.
Workforce/Talent/Change Management. Many consulting firms are working with clients to assess workforce issues through interviews, surveys, workshops, workforce metrics and benchmarking and other assessments to assess gaps and manage changing needs. Both data collected from surveys, external measurements and qualitative analysis will drive how talent and process changes are handled and to drive the business case for change. There will be a fair amount of re-training and re-purposing as well outside hiring and recruiting and teaming with partners to create an ecosystem for competitive advantage with a hybrid approach.
Laura Becker is an Analyst, Management Consulting Research for ALM Intelligence, Consulting
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