As you all know, I like to share interesting bits and pieces from the reading that I do. Like many of you out there, I subscribe to a number of industry publications, which help me get a sense of current trends, new tools, etc. in the software industry.
Today I wanted to share some takeaways from “Raising Your Digital IQ,” an article from the February 2016 issue of Strategy+Business. The article was written based on a global survey of business leaders, which showcased how the smartest companies are using technology.
The fact is – and this should not be news to anyone – that digital technology is becoming a key part of any IT strategy. The gap between traditional and digital IT is widening, and companies who are not adapting to the change will be left behind.
I suggest checking out the article for the findings, but I’d like to focus on some key points here.
This article quotes GE CEO Jeffrey Immelt, who has had this position since 2001. One particular thing I found interesting was Immelt’s comment that every industrial company will soon be a software and analytics company. Of course I find this interesting, given that our mission here at DCG is all about making software value visible. I’m hoping that all these new software and analytics companies will take a hard-headed view towards their software investments and go for software value instead of “me too.”
For GE, a focus on analytics means a single, technology-enabled platform that supports innovation, operations, and customer support. What this looks like at any given organization will vary, but the future is using data to improve business.
Next? The effect of this transformation on budgeting. Traditional IT costs are now transforming too; for instance, cloud-based services are often cheaper to run and support. But, digitization also likely means an increased use of tools to manage the work – and not just in IT. This democratization of technology means that IT spending is now widespread in organizations – in fact, the article notes that in 2015 68 percent of technology spending was outside of IT. But, this too brings new considerations; when other departments are making their own IT choices, it can lead to incompatible systems, security risks, and off-strategy investments.
How is your organization planning its digital strategy?
Read, “Raising Your Digital IQ,” here.