Friday, December 12, 2008

IT Trends 2015

I was reading an article in CIO Insight (http://tinyurl.com/5sndqg) titled "The IT Organization, Circa 2015 - Trends." in it, the author discussed how the CIO will become more of a business manager and less of a technical manager; IT personnel will become more business savvy; IT "alignment" will continue; and how the IT organization will tend towards centralization.

In looking at IT trends (and telecommunication trends for that matter) for the past four decades, IT business focus, IT alignment, and centralization have been consistent themes. In that same period, IT personnel have actually become less business savvy, IT alignment continues to be problematic, and the contention between centralization and decentralization is as strong as it ever was.

A new generation of worker is coming into the IT workplace. These individuals are more technology aware than their predecessors, but they still tend to fall on the side of technology (geek) or business. Therefore the divide continues and will continue into 2015. While many IT organizations spent great amounts of time during the 1970s-1980s getting IT personnel to understand the business and the impact of IT on that business, most of that responsibility has been moved to the college classroom. Unfortunately, there is no substitute for on-the-job training. Therefore, the divide between IT and the business side of the house is likely to increase rather than decrease. This will only be more so as baby boomers retire ( or are ushered out the door to cut costs) and college graduates without work experience replace them.

As long as CIOs have a separate IT budget, business alignment with IT will continue to be a problem. Geeks like technology. Having the money to buy it is liked even more. The only constraint in this area is the economy. It will take several years before the IT budgets loosen up. Suffice it to say constrained budgets will result in hiring IT geeks with little real business experience. In turn, these geeks will push for the latest and greatest technology regardless of it's applicibility to the business operation.

The contention between centralization and decentralization has been around since the first group was assigned to operate the company's computer mainframe. IT has always been about centralization, standardization, and control. On the other hand, the line worker in a company's department wants the technology they want, when they want it, with the flexibility to make it do what they want it to do. Hence, IT departments bought mainframes and departments bought mini-computers; IT countered by tying mini-computers into the mainframe as a means of control and departments countered by buying PCs. IT countered by linking PCs to mainframes, this forcing standardization and security and departments countered by moving functionality to edge devices such as smartphones. Today, with cloud computing resources and applications readily available, it is possible for a department to completely bypass the IT organization. It can do so without long-term investment or long-term commitment. It remains to be seen how IT will respond and how the department will counter.

However, with the current economic situation running at least through 2009, it will be difficult for the IT department to do anything unless it reduces cost. The result will be less training on emerging technology, less investment in emerging technology, and less internal development.

What say you?

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