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Column - Down to Business
C O L U M N  
Biz & IT Must Meld--Finally

  November 15, 2002
  By Rob Preston


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Larry Ellison opened himself to a tsunami of criticism earlier this year for publicly insisting that companies stop trying to customize Oracle's applications to fit their way of doing business and instead adjust their processes to the software. Ellison had a point: Why buy packaged apps when what you want is your own brand? Customers, of course, also have a point when they demand that their vendors deliver more business value and flexibility out of the box.

But the problem here runs deeper than rigid products and vendors. In many cases, buyers of software, hardware and services aren't getting what they want because they're not speaking to vendors with one voice. The interests of "IT" and "business" are still misaligned by the very fact that there remains a distinction between the two, and vendors are adept at playing one off another. As a result, even the most sophisticated companies buy technology ill-matched to their needs.


The IT department may, for instance, be impressed with the management elegance of a thin-client architecture but end users won't stand for losing ownership of their desktop applications. Business execs may like the functionality of this HR suite, that general ledger app and the other sales force automation system--and may want to customize them all to fit their processes--but this mixed technology bag proves impractical for IT to integrate and manage.

Last issue's column blamed part of this disconnect on sales, marketing, finance and other corporate decision-makers who refuse to get up to speed on technology. How can traditional business types hope to maximize their IT investments when they don't understand what technology can do for them? Here's the flip side: How can IT pros hope to make the right product and technology purchasing decisions when they're not fully engaged in their companies' processes and goals?

The disconnect is partly organizational and partly cultural. For decades, IT organizations have been set up as arm's-length departments, sometimes as internal service providers. As cost centers, their productivity was defined mostly by how much money they spent (or didn't spend). Technology pros weren't business-change agents but support staffers.

Mess vs. Mesh

While many companies have brought in CIOs from the traditional business ranks and have set up fancy matrix organizations (where tech managers report up through business departments as well as the IT group), the integration of technology with other business competencies can be more gloss than substance.

At a recent conference, a panel of chief technology officers was asked how their companies' "business" and "IT" were being aligned. "We need to understand the business to really function properly," responded one CTO. Said another: "Our relationship with the business is of paramount importance." What was striking about these answers was their superficiality. Why does the statement that technologists "need to understand the business" even pass as wisdom in this day and age? If a panel of chief marketing officers were to respond the same way about their profession, audible grumbles of "no kidding" would no doubt follow.

Technology leaders must once and for all move beyond theoretical discussions of IT-business alignment and get serious with their approaches. IT organizations still need to handle company-wide architecture and infrastructure matters. But for IT pros to truly become part of the business, they must fan out to other business departments--become the business, not some broken appendage that needs to be realigned with it.

How are technology decisions made at your company? Where do you "live" relative to other business decision-makers? We need to hear about organizational best practices. Drop us an e-mail at the address below.

--Rob Preston, rpreston@cmp.com

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