Feb 5, 2016

Why should you run IT as a business?

Posted by in categories: business, robotics/AI

Interesting article, and one thing that I have thoroughly enjoyed over the years is helping companies developed new products and services through innovation, or changing their IT organization into real profit centers like this article highlights. And, as part of these types of transformations it has always been key to change/ reinforce the culture’s mindset that business owns the definition of the strategies and solutions.

However, as AI becomes more and more prevelant across businesses; we could eventually see that IT ends up owning the definition as well as the enablement of the solutions for the company/ business. So, it is almost like we come full circle through AI after all. And, this is just one of many business/ corporate cultural questions that we will need to address with AI in the coming years.

There are many reasons to run IT as a well functioning business instead of the traditional cost center model. Below are the top 5 consequences of continuing to run IT in the traditional manner.

Wasted Resources

Running IT as a cost center actually can result in waste of precious company resources. Both money and time can be used more effectively if the department is run in a more business like manner. Money is wasted through duplication of efforts, maintaining systems that should be replaced, failed projects, and systems and data centers that do not meet the business needs. The most precious resource of time is wasted in both IT departments and throughout the company. Poorly run projects that run over time or do not provide full value impact everyone. Business departments also spend time working around IT instead of with it resulting in wasted time. Running IT as a business helps ensure that time and money are used in the most effective manner to help the business meet it objectives.

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