A recent Strategic Perspective published for subscribers of Saugatuck Technology’s Continuous Research Services laid out a simple vision of three eras of enterprise IT – Centralized, De-centralizing, and Boundary-free Business – and why the shift from the second to the third has been so traumatic, and has generated such fear, uncertainty, and doubt among enterprise IT organizations and the external providers serving them. A new Strategic Perspective uses input from CIOs and CTOs to create a heat map model that illustrates key shifts from one era to the next, in the context of change from Technology-first to Business-first IT capabilities, and weighs the effects of these on internal enterprise IT organizations and external IT providers.
The net of it all: The core nature of enterprise IT has shifted from Technology primacy to Business primacy, and that is what has changed the fundamental nature and value of enterprise IT – and of the external providers serving enterprise IT. Most of us are aware of this, but we have not been able to visualize it easily, and so have lacked an effective means of qualifying the change and identifying where investments and planning need to shift, especially as regards the capabilities needed to make IT work for the enterprise. Saugatuck’s model enables this visualization to be adaptable to individual enterprises.
Because of the shift away from Technological primacy, many traditional external IT providers (e.g., VARs, SIs, outsourcers) are losing much of their influence over many aspects of enterprise IT and business. This is not to say that what they provide is unimportant and not valued; instead, more value is being attached to other, more Business-first, types of capabilities (e.g., process-specific, market-specific knowledge and expertise). And yes, many providers have decades of process- and market-specific skills and knowledge, but in the past, these tended to be applied in ways that emphasized the specific technological characteristics of providers’ offerings. The value expected by enterprises is no longer in the offerings, but in how the offerings improve their business. Continue reading From Technology Primacy to Business Primacy – Mapping IT Capabilities Across Eras