Disruptions caused by the COVID-19 pandemic have accelerated trends that were already present in big data IT. Increasingly, businesses know that they have to be in the cloud to survive and thrive. But as soon as they make the move, organizations realize that business-IT alignment in the cloud can be a serious challenge.
The good news is that business leaders are now aware of the potential misalignment between business and IT, particularly in their cloud investments. Pepperdata is helping business organizations discover ways to fully maximize cloud utilization, optimize cloud spend, and derive more value from their cloud assets. More importantly, Pepperdata is enabling enterprises to ensure their cloud investments wholly support their business goals.
What is Business-IT Alignment?
Business-IT alignment is the effective and seamless adoption, integration, implementation, and management of information technology (IT) assets to achieve desired business situations, objectives, and goals. IT assets can range from hardware to cloud-based software, resources, and services.
Business to IT alignment is crucial to any modern business, especially as the majority of organizations are now moving away from dated business methodologies to new business models that emphasize digitalization of processes and enterprise-wide cloud utilization. According to Gartner, business-IT alignment is gradually becoming a focal priority, with 50% of organizations expecting increased collaboration between business teams and IT departments by 2022.
Benefits of a Successful Business-IT Alignment
IT alignment with business goals is considered successful when an enterprise’s IT initiatives meet every requirement specified by its business functions. For instance, Company A moves its major business processes to the cloud to enhance efficiencies, reduce operational costs, and driving growth—all within a particular schedule. If such a move results in achieving all targets, that’s a successful alignment of business goals and IT investment.
This alignment means every dollar spent on IT should always support a business objective. Benefits of a successful alignment include:
- Reduction of IT-related costs
- Boosting of operational value of IT assets
- Improved collaboration
- Superior visibility and monitoring into problem areas
- Fine-tuning of investments resulting in increased ROI
- Acceleration of time-to-market
- Synchronization of different departments leading to collective agility
- Upskill valuable industry knowledge to other employees
- Smarter decision making
Alignment: Challenges and Opportunities
Why is business-IT alignment so difficult? While IT plays an important role in any business, some business leaders see IT as an afterthought. Business teams and IT teams are two different departments, and sometimes they can struggle to meet in the middle. Sometimes, business leaders are not aware of their IT resources and capabilities. Meanwhile, IT departments focus too hard on IT-related metrics to support their recommendations, without considering the overall business goals.
The COVID-19 crisis effectively highlights how misalignment between business and IT occurs. Businesses had to accelerate their cloud initiatives and quickly implement them with limited thought about aligning their IT investments to their goals. This resulted in increased business-IT misalignment. 80% of enterprises already found their cloud spend to be bigger than anticipated; post-COVID, this figure is likely to be even higher.
This alignment can be a challenge, for a variety of reasons:
- Infrastructural Stumbling Blocks