Warren Oluwasanya
Jul 24, 2017 · 6 min read

The Role of IT Leadership in Business Transformation

Abstract

Business Transformation refers to an evolutionary shift in a business model in the form of a process re-engineering through digitization. This process must be well thought out and the C-Level executives must make the tough decisions about their existing business models and how they choose to compete going forward. The need for transformation is evidenced by the need to remain competitive in a world where billion dollar businesses operate without fixed assets and operate strictly online through mobile apps and social networks while traditional businesses react to emerging opportunities and threats, the businesses that stand out today are those with deep insights into their markets, who are fast adopters of the right mix of technology, lean processes, talent and the ability to gather, analyse and use data to successfully predict the future. These businesses don’t arrive there overnight but leveraging the right tools they are able to develop and implement a well-defined strategy on the transformation required for all business stakeholders to emerge as the disruptive in their markets.

Technology as a catalyst

Technology powers business therefore, business transformation requires the availability of “timely technology”. Business Executives have the responsibility of placing technology at the core of the business. This is done by developing a road map for digital transformation which covers areas like how technology will impact on market inefficiencies and customer expectations etc. It is about identifying where you are vulnerable and where you can create value.

Today, business transformation is a key factor in business success stories. Many well-known companies have transformed their businesses through massive technological shifts to more robust solutions not because it was innovative, but because it was critical for their business survival. In Nigeria, the journey to digitalisation is still at the forefront of business priorities today. “As digitalisation moves from an innovative trend to a core competency, enterprises need to understand and exploit platform effects throughout all aspects of their businesses”. However, many executives note that competition is a key driver of their current digital development efforts.

Technology platforms and resources such as IoT/smart devices, Cloud XaaS, ERP’s, FINTECH/mobile payment, process work flow automation, Real time Business Intelligence reporting, smart mobile apps, smart devices, wearable technology, Global Positioning Systems (GPS) etc. are widely available to businesses that wish to strategically position themselves to become more competitive, eliminate waste, save cost and enable employees to become highly productive.

What drives the success of a business transformation?

If these transformations are critical to success for any modern-day business, then it is important to examine what lies at the heart of any effective technological shift. Every business transformation presents itself in the form of projects and these projects are the stepping-stones to these major moves. To have a successful transformation you need a well-executed project and to achieve this, an exceptional project manager is vital, one who understands the business and has the skill required to execute.

The CXO Paradigm

IT Leaders are now seen in the board room and at strategy discussion tables. They are c-level executives with all sorts of fancy titles (CIO, CTO, CDO etc.) These IT Leaders or CXOs are responsible for of driving innovation and transformation. The role of the CIO is now more strategic and should involve spending less effort on routine technical hands-on/operational activities and more effort evolving at the c-level leveraging on visionary and strategic expertise. This is in complete contrast to the traditional hands on IT Manager who directs the technical team, supports the SBU’s day to day operations and manages IT assets, budgets and cost centre. The role of transformation does not rest solely on the CIO but on the management committee with direction from the Board because there are many angles to transformation but the 3 most common ones are People, Process and Technology (PPT). A growing number of executives are facing up to digital reality, they know that digital technology can significantly improve the performance of their current business, they know that first-movers have an advantage and they are keenly aware that digital can give birth to entirely new business models that shake up sectors, leaving companies that fail to adapt struggling to survive. Evolving the CIO’s role from what has typically been an IT operations management function into a business-enabling role can inspire the creative and collaborative cultures that make superior service experiences happen.

Keeping Culture Fresh

Technology driven business transformations signify more than just a shift to new systems and programs, it is about business improvement — creating new structures and processes to ensure the business thrives in the digital world. While technology traditionally drives these changes, it is people that ensure the changes permeate an organisation at every level. The people piece of transformation is often neglected for the sake of effective integration, or more technology-focused goals. Therefore, the role of IT Leaders is critical and an exceptional CIO can ensure these transitions are focused on technology and people equally. These professionals can see transformation projects through a technical lens as well as a business lens. They lead these changes with a solid foundation of communication and organisation to ensure a smooth and seamless transition into better systems and more efficient business processes. The CIO must employ an effective change management process with continuous sensitization of all stakeholders. A CIO who can introduce technology services that enable people to be more creative will be more strategic than one who does not. When it comes to connecting the dots to transformation, many, if not most, CIOs spend a great deal of their time looking for opportunities to enhance individual employee productivity and streamline operations. This focus certainly delivers on the promise of achieving results better, cheaper and faster. But it is more akin to updating processes than engaging in meaningful transformation. This can be done by ensuring broader access to the information resources they need at the time and place of their choosing — an essential element for any dynamic enterprise. Productivity, Creativity and Collaboration leads to Transformation.

Evolving at Board speed

Digital Transformation ultimately leads to an Evolution of the business model, everything from a process standpoint needs to be focused on a digital capability. This cannot be done in isolation and strategic direction must come from the Board. The benefits of going digital may already be clear, but to get to that point CIOs need to appreciate that this is an undertaking that requires substantial commitment and well-judged application, massive amounts of investment is required that means translating intangible discussions about business model disruption into a solid business case for an application that will enhance business value considerably. The CIO must get the board to pay attention and get a sense of urgency, however, it is more important to have them buy in to the business model change that will lead to a concrete return on investment.

Customer centric

In today’s highly competitive business climate, where all businesses must compete skilfully for customer attention and loyalty, it’s essential to invest “strategically” in technologies that make service excellence possible. The new, strategic CIO’s unique insight into both business and technology allows executives to have an improved perspective for choosing IT investments that yield the highest impact for achieving business goals. However, in many companies the old cost-centred financial model has not yet evolved to fund the strategic IT investments that enable the type of cultural and service transformations required to compete in this new business era. During budget season, there is often a competition for funds to support strategic growth initiatives. If the business-savvy, technology-aware CIO is not at the table, opportunities to enhance service, innovation and productivity are forfeited, and the business culture cannot transform.

Conclusion

Given today’s economy, limiting the CIO to purely an operational function is not an option. Companies must embrace the innovations CIOs are uniquely positioned to deliver and capitalize on the strategic breakthroughs made possible as they truly create a dynamic enterprise.

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