November - December 2016CIOAPPLICATIONS.COM8IN MYOPINIONThe New Economics of IT in a Cloud-First WorldKaytek Przybylski, SVP, Technology Services, Avanade he challenges IT leaders face have never been greater. In addition to keeping critical systems running, they are increasingly called on to help the business innovate--often while budgets remain flat or in some cases are shrinking. The pressure to do more with less is ever present. Throw in factors like the consumerization of IT with BYOD policies and the increasing need to collaborate with other business functions, including marketing, sales and HR, and it's little wonder that traditional IT architectures, skills, processes and technologies that have worked in the past are rapidly becoming obsolete in this cloud-first world.This tension between competing priorities has long been the subject of industry research seeking to uncover ways for IT to maintain its relevance while earning a seat at the table as a strategic partner to the business. Our 2014 global study of IT and business leaders showed that 36 percent of IT staff's time is spent managing and maintaining legacy systems. This commitment to legacy technology has a consequence ­ a lack of innovation. That same study showed that fewer than one in four executives say IT staff regularly suggests new technology solutions on their own. Two years later, we're still seeing the same trend.In order to deliver results for the business and thus wield greater influence within their organizations, a new perspective is needed, one that calls for two distinct approaches: a predictable approach to optimize core IT systems, and an exploratory approach to innovate the business with new technology. This new perspective defines the creation of value through new IT approaches used to maximize efficiency, increase agility and speed innovation. A concept popularized by Gartner and sometimes referred to as bimodal IT, a dual approach to IT is a concept that IT leaders claim to understand, but when pressed, struggle to define it or put it into practice ­ particularly when the lines between the predictable and exploratory modes become blurred. For example, let's say your IT team partners with the business to build an innovative new product or service. That would be a Mode 2, or exploratory, initiative. But the moment it goes into production, you need to support it, secure it, ensure it scales, etc. That's when it becomes a core function and starts to require a predictable Mode 1 approach, and more importantly, your Mode 1 IT needs to adapt to any of the new demands this innovative product or services requires. So in thinking about a cohesive IT strategy, IT leaders should seek to have methodology/tools/processes in place that support both modes and also allow for smooth transitions between the two modes. Liquid applications, intelligent platforms and connected ecosystems help to implement these dual approaches to IT, ensuring predictability and enabling exploration.TIT is not here just to keep the lights on in core systems; its role is evolving to help the business support digital transformation and advance its agendasKaytek Przybylsk
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