Digital Transformation (DX) is helping enterprises to change not just technologies but the entire way of doing business. CIOs are implementing digital strategies to enable smooth collaboration among employees, automate internal operations, and exceed consumer demands to gain or sustain a competitive edge.
From being a ‘must watch’ in 2013, digital technologies have now become a disruptive factor enabling process automation, dramatic cost reduction, productivity improvement and several new competitive advantages.
There has been a major shift in the way businesses leverage and consume IT resources. This shift has given rise to a new business model. i.e., IT as a Service (ITaaS).
IT as a Service Business Model
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As TechTarget describes, “IT as a Service (ITaaS) is a technology delivery method that treats IT (information technology) as a commodity, providing an enterprise with exactly the amount of hardware, software, and support that it needs for an agreed-on monthly fee. In this context, IT encompasses all of the technologies for creating, storing, exchanging, and using business data.”
ITaaS has become a top objective for CIOs in 2017. It is a game-changing strategy that can help a CIO maximize the value of IT by aligning it closely with the business goals. It enables agility, a consumption-based cost model as well as on demand management. Some of the major IT as a Service benefits are:
Implementing IT as a Service requires you to reorganize the traditional function-based structure of your IT department into an IT as a Service model construct. You need to rethink your IT enterprise, your ecosystem, your technology investments, and your relationship with the business. But attaining this level of change isn’t easy, quick or cheap. There are certain factors you must consider when implementing IT as a Service business model.
All the above factors have implications on your enterprise’s design, process, policies, and operations. The first step CIOs need to consider in improving the alignment and relationship between IT departments and business is to reorganize IT into an ITaaS construct. Once your business gets into the woods of the ITaaS journey, the process will manifest itself for moving other elements into that model.
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