In today’s fast-paced digital age, companies are faced with the dual challenge and opportunity of harnessing the power of information technology (IT). With computer hardware continuously advancing and new technologies emerging, it’s crucial for executives to effectively navigate the IT landscape to drive organizational success.
The abundance of technologies in the market presents a significant challenge for executives, who often struggle to decipher the myriad systems and applications available, leading to underwhelming IT project results. As a result, many companies find it difficult to align business and IT strategy, experiencing delays and budget overruns in IT efforts.
To effectively manage IT, executives must transition from viewing IT projects as technology installations to periods of organizational change that require active management. By adopting a comprehensive model that encompasses the impact of IT on organizations, executives can better understand the capabilities and benefits of different IT categories.
IT can be classified into three distinct categories: Function IT (FIT), Network IT (NIT), and Enterprise IT (EIT), each with unique capabilities and organizational impacts. FIT enhances task execution efficiency, while NIT facilitates communication and collaboration. On the other hand, EIT restructures interactions among employee groups or with business partners.
After selecting appropriate IT applications based on the organization’s needs, executives must lead adoption efforts to create complements that maximize the value of the chosen technologies. While FIT and NIT adoption present their own challenges, EIT adoption can be particularly arduous, often met with resistance from employees.
Once IT applications are in place, companies can exploit their full potential by fine-tuning organizational complements for FIT, guiding users in leveraging NIT, and leveraging already standardized data and work flows for EIT. Successful exploitation of IT can lead to substantial competitive advantages for organizations.
In conclusion, while IT presents managerial challenges, successfully applied technologies can provide valuable and rare capabilities that significantly impact a company’s competitive position. By understanding and effectively managing the three worlds of IT, executives can drive organizational success in the digital era.
