“Technology is the biggest story in business today, plain and simple.”
Leading Digital, George Westerman, Didier Bonnet, Andrew McAfee
Continuing our discussion on the second variable in the CE formula “Discipline + Technology + Insight = Competitive Edge” we will touch on strategic alignment of technology and business. Strategic alignment was in vogue 10 years ago but by now is considered by some to be an overused phrase when talking about the relationship of technology to business. Is it just a phrase, or is it now more critical than ever before?
As we’ve witnessed an explosion of ground-breaking new advances, technology has become a game-changing opportunity for organizations of all types. IDC predicts there will be approximately 212 billion Internet-connected things by 2020. [http://tinyurl.com/qyles48]. The breakneck pace of “technology change” represents a challenge to companies on how to best leverage technology while managing legacy investments. Recent research makes the business case for not falling behind and becoming technologically obsolete. Companies that master digital technology are 26% more profitable and generate 9% more revenue on their physical assets compared to less tech savvy peers. 1
Advances in information technology have been building and accumulating for decades. In recent years, we’ve witnessed a rapid acceleration of technology innovation. This makes sense when one considers that Moore’s law is conservatively in its 25th iteration. Moore’s law states that integrated circuit density doubles every 18 to 24 months. Proving the axiom, today Intel manufactures chips that contain over 1 billion transistors. Similar advances are occurring in other areas such as: data storage, mobile devices, smart machines, 3D printing, and cloud.
Every iteration from here on out is on top of an already huge reservoir of computing and storage potential. Which translates into “we ain’t seen nothing yet”. It also means the potential for becoming competitively irrelevant increases exponentially with time for those companies that fail to become digitally competent.
On the other hand, the opportunities that are emerging appear limited only by human imagination. Social media provides an ear to the customer. Cloud computing and dev/ops promises increased agility to offer new products and services. Wearable technology will not only monitor our health but may also administer treatment. The internet of things and big data analytics enables higher quality decisions with real-time operational and customer information.
So the case for strategic alignment between IT and the rest of the organization is clear. Are you ready? How are you ensuring that your technology investments reflect your business needs and opportunities?
– by Mark Baumbach // Senior Management Consultant @ Beyond Impact LLC –