When collaboration between IT and business rhymes with success

Over the past two years, businesses of all types and sizes have relied heavily on their IT teams, not only to help them weather the challenges of the Covid pandemic, but also to give them hope for future. ‘a better future.

Wonderful things happen to businesses that appreciate the power of computing. That’s according to a report published by PwC, which highlights positive correlations when IT and business professionals work together.

“A common vision with [le] business world “

PwC’s survey, based on responses from 1,040 business leaders and 210 IT managers, finds “IT leaders” are more likely to invest in cloud technologies, including enterprise applications, infrastructure and development platforms. These digital leaders represent about one-fifth of all technical executives surveyed. PwC defines them as leaders who have “a common vision with their peers in the business world”.

“IT leaders have also made significant investments in process automation, putting tools in the hands of employees so they complete tasks faster, freeing them up to spend on purpose-driven work. value and knowledge,” said Jenny Koehler, partner at PwC and co-author of the report.

“As an interface technology, APIs allow companies to modularize their systems for easy replacement and upgrades,” she explains. “APIs also serve as an authorization technology that grants outsiders carefully measured access to internal resources. These functions not only allow a company to quickly reconfigure its systems based on problems and opportunities, but also allow outsiders to rely on the company’s digital real estate. »

How Reverse Businesses Create Value

These investments have paid off, as the PwC survey shows. IT leaders are more likely to see improved financial performance, as well as greater innovation and productivity.

IT leaders can also help move their organization towards a platform strategy, which enables value to be created beyond the walls of the company. In the digital world of the 2020s, more value comes from outside the enterprise, which is made possible by an appropriate technology structure, write Marshall W. Van Alstyne and Geoffrey G. Parker in the harvard business review.

This emerging model, which the co-authors call a “reverse business,” relies on a platform strategy. It means “providing the tools and the market to help partners grow”. In contrast, incumbents typically use digital transformation to improve the efficiency of their current operations.

How to solve this problem ? “Digital investments must put the firm in place to partner with users, developers and merchants, at scale, with a focus on value creation, which is the foundation of reversing the firm. »

The co-authors, in the harvard business review, cite a study of 179 companies that confirms the effectiveness of this reverse model. Companies that have used application programming interfaces (APIs) to open their services to outside partners or customers “have experienced an average growth of 38% over 16 years”.

“As an interface technology, APIs allow companies to modularize their systems for easy replacement and upgrades,” they explain. “APIs also serve as an authorization technology that grants outsiders carefully measured access to internal resources. These functions not only allow a company to quickly reconfigure its systems based on problems and opportunities, but also allow outsiders to rely on the company’s digital real estate. »

Taking engagement beyond IT

Executives, managers and IT professionals will play a leading role within their business. Business leaders expect no less.

Based on the results of these surveys that reflect the gains that IT teams can bring, industry analysts make several recommendations.

First of all, the company will have to be engaged well beyond IT. “Tech leaders should proactively engage their peers,” recommends PwC’s Jenny Koehler.

It will then be necessary to be able to take advantage of the network effect, explain the analysts. “Among reverse firms, network effects that arise when partners create value for each other are a major source of growth in intangible assets,” say Marshall W. Van Alstyne and Geoffrey G. Parker. “The ability to coordinate the creation and exchange of value (user-to-user, partner-to-partner, and partner-to-user) is one of the ways traditional businesses are transforming. This also allows for scaling. Transforming atoms to bits improves margins and range. Transformation from the inside out amplifies ideas and resources. »

Finally, analysts turn their attention to the acceleration of the cloud. “Align your business stakeholders with the cloud promise, based on the industry you are in and where you are in your journey,” recommends Jenny Koehler. “It requires making specific choices about how the cloud will help differentiate the business – what digital and technology capabilities you develop, what customer problems you will solve, and what role your business plays in the industry or others. ecosystems. »

Source: ZDNet.com

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