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Businesess shift to new IT management approach

The recession and advances in technology have forced companies to rethink the role of IT in organisations, leading to a new management style, analyst firm McKinsey has claimed.

Previously CEOs neglected the link between IT spend and performance. In most organisations, IT began as a support function, leading to a one-dimensional management approach, it said.

But development in technology, such as interactive communications, and an "always on" information environment have changed this. In addition, established practices, such as lean-management techniques, have highlighted the value of IT in reducing waste and increasing productivity.

This has given rise to a new management model consisting of two categories: "Factory IT" and "Enabling IT", it said.

Factory IT applies lessons from the production floor - scale, standardisation and simplification - to drive efficiency, while Enabling IT is focused on helping organisations respond more effectively to changing business needs, it found.

"Business leaders will have to engage with IT in new ways. For instance, while IT standardisation and consolidation increase responsiveness, speed to market and cost effectiveness, managers may have fewer options to customise solutions," said the report.

But in order to get the most out of their IT teams, companies will need to recognise staff by offering incentives and rewards for exceptional performance, it added.


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