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The second wave of digitalisation and the new organisational change

When the technological investments have been made and the cultural changes are completed - business and IT will melt together. And then, it will be time to implement a new organisation.

Let us presume your organisation has made the technology investments in a digital backbone including capabilities for API&Integration, DevOps assembly line and Cloud services.

You have made the cultural change so openness and sharing is key values in your organisation. All employees understand the value of the organisations digital assets and the value of making them available for internal innovation.

Now is the time to make the innovation happen by implementing an organisation that can leverage from the newly achieved culture and technology.

Business becomes IT and IT becomes business

When business becomes IT the IT organisation as we see it today will fade away. All business is IT, hence the whole organisation is an IT organisation. If it is not seen yet in organisation changes it is clearly visible in financing of IT. As described in Radar IT report 2019, “IT-Radar 2019”, Line of Business investments in IT outside the IT budget is increasing for the third consecutive year, and now stands for 20% of the total IT investments.

There is no longer any need for boundaries between Line of Business and IT,

There is only data. Data that build services, data that give insights and data is more stable than applications. A data driven organisation needs to be applied. 

Data is owned and managed by core business

In a data driven organisation data is owned and managed by core business. Data is exposed and consumed via the digital backbone through a common set of APIs. 

Core business will innovate by using own and other data to build new services and to expose them for further innovation.

The organisational change will have full effect when core business takes full responsibility for their core data and everyone utilises it through self service. Core business is responsible for the financing, hence only data and services that generates business value will be sustained.

The digital transformation is about technology, culture and organisation. 

When we apply all three changes as described we not only make a digital transformation we achieve an even more important change, the business transformation, which allow us to deliver core business value in a substantially more efficient way.

It is time to go with the flow – the second wave of digitalization is here

Written by Henrik Gavelli