WHAT TYPE OF TRANSFORMATION DO YOU NEED?
In the face of this unprecedented disruption and complex environment, organizations are seeking to build a competitive advantage to scale or keep their legacy position. To do that, a transformation is imperative. The question we shall ask is: what type of transformation does your company need? Why most transformations fail or fall short in generating value from their targets?
There are two important strategies that IT leaders and managers need to consider for a successful transformation. One is a strategy for change and transformation, such as a new target operating model, modernizing core systems, and standardizing processes, infrastructure, and applications.
The second strategy is that organization has to develop the right functional capabilities to drive and sustain the transformation.
THE IMPORTANCE OF A FIT IT FUNCTION
Most transformation fails not because of a lack of talent or resources, but it is due to a lack of a holistic approach to achieving the long-run transformation.
Common pitfalls that may lead transformation efforts to fail include poor portfolio, program, and project management, lack of adequate capabilities in managing vendors and contracts, which can result in heavy costs and jeopardize the entire technology-enabled transformation.
WHAT TYPE OF TRANSFORMATION DO YOU NEED?
There are three main questions to answer to develop a fit, transformation-ready IT strategy:
· Which specific capabilities are needed to support the transformation? Different types of transformation require different strengths.
· How good are my capabilities today, and how good do they need to be? Organizations should identify where, and how much, muscle is required to reach the desired target.
· What is the right way to improve capabilities? Leaders must define a manageable set of clear, outcome-focused initiatives to improve capabilities in the areas where they are needed most.
To answer these questions, an IT organization can use the IT-CMF Framework (IT-Capability Maturity Framework) which was developed by the Innovative Value Institute (IVI). The IT-CMF Framework is the only framework that aligns IT with Business to create value. The framework guides consist of a clear and thorough analysis and discussions to identify the right functional capabilities needed for transformation; and describe the practices, outcomes, and metrics for success necessary to strengthen these critical capabilities.
DIFFERENT TRANSFORMATION TYPE NEEDS DIFFERENT CAPABILITIES
Before starting any transformation efforts, organizations need to have a clear view of its current capabilities, then assess the capabilities gap to strengthen when getting ready for any transformation. The framework provides a structured and comprehensive set of 32 capabilities that help evaluate and improve the management of IT both strategically and from a business-value added perspective. Each capability of the IT-CMF consists of capability building blocks (CBBs) which provides a set of criteria and questions to assess maturity levels and metrics to measure the contribution to business value. These capabilities are organized into nine groups that address the different ways that technology drives business value. (See below)