September 17, 2015

Business and IT hand in hand

Ari Hirvonen

Head of Enterprise Architecture Consulting, Tieto

There is now a dramatic change in all industries due to digitalization. Developing digitalization support for business in an agile way is now the primary priority of IT departments. Cost saving agenda is still there, but quite far from the primary focus.

Digitalizing your business begins by modernizing your IT

Which processes, channels, digitalized products and services and digital business models are needed? How to modernize current IT and enterprise architecture landscape to support business initiatives?

There may still be pure cost saving projects e.g. with application portfolio assessment, but the key focus is in digital business change and required modernizations. A few key principles are essential:

  • Industry driven approach.
  • Use of customer’s current IT assets to enable critical business change.
  • Learning and adaptable process: each increment is supported by business related KPIs and arguments, it in many cases also enable self-financing.
  • The change of Technology, Business processes and People. We secure that transformation will be successful, which means change in all these three areas.
  • Securing business continuity:  Tieto has long successful history with business critical IT and business continuity and security is key part of the processes.

The goals are reached by practise proven but also through totally new approaches and methodologies. For example many of our customers use application portfolio to manage their application assets and investments, but very few has a discovery portfolio to govern their innovations and digitalization agenda.

IT to bring business initiatives forward

A while ago we proposed a traditional application portfolio assessment to a customer. There was IT cost cutting pressure and thus application portfolio rationalization would have brought some clear savings. However the work did never start. Cost cutting pressure was and is still there, but it seemed to be really hard to find funding from the business just for that.

Thus we made proposals around a couple of customer’s key digital business initiatives. We proposed to modernize customer’s IT in those areas and in parallel seek architectural rationalization and cost savings in the IT landscape influenced and integrated by those business initiatives. This approach resonated very well. In this case the customer’s business managers want eagerly drive these digitalized business initiatives forward and funding is there already. I have seldom seen such an enthusiastic customer when we presented our approach and proposal to their IT manager.

Tieto’s Modernization Consulting 2.0 focuses to the parts of IT landscape that are material to the direction that has emerged from business. Cost savings typically come in parallel as a part of modernization process, but there are cases where that does not happen at all and only the primary goal is reached: digitalization of business and business success based on that.

- - -

Stay up-to-date

Get all the latest blogs sent you now!