Technology Transformation is the process used to create an IT Capability to maximize shareholder value.
Technology Transformation leverages enterprise architecture planning which creates a description of the current IT Capability, the desired IT capability and the roadmap for the journey from the former to the latter.
IT Transformation uses IT Governance to monitor and control all its processes. IT Governance includes guiding principles, policies, organizational structure, business case preparation, and project portfolio rationalization.
IT Transformation Drivers
- Response to Business Change: IT Transformation is sometimes required to move the IT Organization to a new business model, or enter new markets or launch new products. If the business re-engineers then IT must follow. IT Transformation is often needed to improve IT Organization agility - react fast to keep up with the ever changing business environment.
- Response to Leadership Changes: A new CEO often changes their entire approach and IT must follow. CIOs are known to change the organization they join - to cast it in their own image aka leadership style, or to change it to a model they believe is more effective.
- Response to Efficiency Demands: CIOs are under pressure to cut costs. Some IT footprints provide better cost graphs than others.
- Response to Effectiveness Demands: Very often, Business IT Alignment drives IT Transformation because major changes in IT capability are required to address business needs.
- Response to Mergers and Acquisitions: When two organizations merge, what will the new organization look like? That is anybody's guess but changes are that there will be IT Transformation involved in one or both organizations involved.
IT Transformation Benefits
One of the more famous IT Transformation implementation case study is at New York State. They define the benefits of IT transformation as follows:
- Elevated business delivery through partnerships that align IT more closely with agency needs and enable more innovation
- Greater agency ability to focus on their core missions without losing transparency or control over their IT solutions
- More value and resources per dollar spent on IT