IT transformation forms the basis of a company’s overall digital transformation strategy. It involves modifications and modernization of the software, hardware, network and management components. The purpose is to make the technology more accessible and convenient for all users. Typically the CTO heads the IT transformation and several reasons can make it obvious for a company to want to make that change.
What Pushes IT Transformation
Changes in the Business Model
The company might be shifting to a new business model. The company must have decided to venture into new markets or launch a different type of product. It can also drive the IT transformation of the company.
Some companies undergo a complete overhaul and change the scope of their business. The IT transformation responds to the evolving environment and enhanced business agility. The swift response can be only possible through a transformation.
Changes in Leadership
Whenever businesses replace their top executives, they are likely to experience other changes. The new manager might bring new ideas to the table and want to take an entirely different approach to run the business. These modifications will make the IT transformation necessary.
It is typical for a new CTO to introduce changes in their company soon after joining. They each follow an individual leadership style. They implement a structure that they believe will be increasingly effective for your business.
Demand for More Efficiency
Companies are always trying to cut costs and become more efficient and IT transformation can help with that. It is very common for businesses to use IT solutions to bring down their expenses because some of them are more cost-effective than others.
In many cases, businesses want to be more IT aligned so they switch to digital venues. They can address their business needs by switching to IT solutions that are more effective and require less manual labour.
After a Merger or Acquisition
With the merging of two firms, a new organization emerges or sometimes a bigger conglomerate buys a smaller company and adds it to their portfolio. In cases like these, there are bound to be changed in the infrastructure. These will drive IT transformation in either one or both of the companies depending on the situation.
What Makes an IT Transformation Strategy Effective?
Identifying the pain points and ordering them according to their priority is the first step. Once you have done that you can outline the requirements and take the necessary steps to introduce the technologies. Make sure you have the launching mechanism in place and have aligned all the processes by holistically looking at the whole thing. For the strategy to be successful, there has to be a commitment from the top management and board because the employees look to them for inspiration.
In short, IT transformation can be the key to unlocking new potential and discovering more opportunities for your business. You can also leverage the strategy to take your business to the next level.