IT Management in the Digital Age: A Roadmap for the IT Department of the Future (Management for Professionals)

This book examines the massive changes currently taking place in the business world and commonly known under the label “digitalization.” In addition, it describes the significant impacts of technological innovations on processes, products, services and business models. The digital transformation resulting from these developments leads to disruption for many enterprises and industries. While for many years, IT departments mainly concentrated on fulfilling the requirements of business departments effectively and efficiently by means of high-quality IT services and operations, today’s IT departments are increasingly expected to actively co-design and co-create the enterprise. This book describes how information technology enables innovation for businesses, and how IT departments can proactively and in a timely manner collaborate with the business departments of their corporation to leverage these innovations. It also delineates the implications of digitalization for the structures, processes and people in today’s IT departments. IT leaders and managers who are responsible for corporate IT, as well as practice-oriented researchers, will find valuable inspirations and guidance in this book, the central mission of which is to encourage and enable a more proactive role for IT in the digital transformation processes.__"This book demonstrates the impact of digital transformation on IT organizations and their management. It also presents potential risks for technology availability, security and data protection. The authors develop a vision of what IT management should look like in ten years if it is to continue playing an important role in the company. The book seeks to motivate IT executives and managers with IT responsibility to actively adapt their thinking and their IT organizations before they are forced to react to external pressure. Definitely worth reading!"__ **Sven Kreimendahl, Director Business Technology Services, Campana & Schott** Testimonials 6 Foreword 8 Preface 10 Contents 12 About the Authors 15 The Digital Revolution: How Technological Trends Change the Business World 17 New Technologies Change Business 18 The Digital Revolution and Its Disruptive Effect 22 How Business Can Benefit from the Digitalization Trend 23 Digital Companies Are also Exposed to a Number of Risks 27 Implications of Digitalization for IT Management 27 Overview: The Digital Revolution 28 References 28 The Development of Corporate IT: From the Beginnings to the IT Department of the Future 30 Corporate IT from the 1950s to the Present Day 30 Current Challenges of Digitalization 33 Ten Hypotheses About the IT Department of the Future 34 Overview: The Development of Corporate IT 39 References 40 No Business Without IT: IT Is the Central and Indispensable Driver of Entrepreneurial Value Creation 41 The Influence of Information Technology Up to the Present 41 Current Technology Trends and Their Influence on Business 42 Digitalization in Marketing and Sales 45 Digitalization in Purchasing 47 Digitalization in Logistics 48 Digitalization in Production 49 Digitalization in Human Resource Management 50 Digitalization in Finance and Controlling 51 Transformation Towards a Future IT Department 52 Overview: No Business Without IT 53 References 53 Development and Operation Are Not Decisive: IT Management Follows the ``Innovate-Design-Transform ́ ́ Paradigm 55 The Development Towards Industrialized IT Management 56 Industrialized IT Management Reaches Its Limits 57 Requirements from a New IT Management Paradigm 57 The New Paradigm: Innovate-Design-Transform 58 Capabilities of the Future IT Department 61 Overview: Development and Operation Not Decisive 62 References 62 Shadow IT as a Lived Practice: IT Innovations Are Developed in Interdisciplinary Teams Within the Business Departments 63 Shadow IT as a Reaction to (Too) Long Implementation Processes 63 Controlled Handling of Shadow IT After Weighing Opportunities and Risks 64 In Future, IT Innovations Will Be Created Through Close Cooperation Between Business and IT 66 Joint Innovation Activity Requires Rethinking 67 Co-location as Transition Model for Legal Shadow IT 68 Overview: Shadow IT as a Lived Practice 68 References 69 Innovations Through Networks: Turning Strategic Suppliers into Innovation Partners 70 Traditional IT Sourcing with a Focus on Cost Efficiency and Quality Improvement 70 Joint Innovation Work with Selected Partners 72 The (Potentially) Difficult Relationship with Innovation Partners 73 Innovation Partnerships Are Not a Purchasing Task 73 On the Way to Innovation Partnerships 74 Institutionalization of Partner Management 75 Overview: Innovations Through Networks 76 References 76 Focusing on the User: Development Processes are Agile, End-User-Centered, and Merged with the Operation 78 Traditional Software Development Processes Usually Follow the Waterfall Model 79 The Future of Software Development Is Agile 79 Stronger Focus on the End User 81 Merger of Development and Operation 83 Two-Speed IT as a Harbinger of Agile IT 84 Overview: Focusing on the User 85 References 85 Infrastructure as Commodity: IT Infrastructure Services Are Traded on Free Markets and Purchased as Required 87 IT Infrastructures Versus Business Applications 87 Classical IT Operation in the Internal Data Processing Center 88 Standardization as an Essential Prerequisite for Future Developments 90 IT as a Service and Commodity 91 Change in the Provider Spectrum 92 On the Way to Cloud Readiness 94 Preparing (Strategic) Purchasing 95 Overview: Infrastructure as a Commodity 95 References 95 Digitalization as a Risk: Security and Business Continuity Management Are Central Cross-Divisional Functions of the Company 97 Current IT Security Risks Are Mostly of Limited Scope 98 The Threats Are Becoming More Diverse 99 Secure and Stable IT Becomes a Business-Critical Resource 100 Development of Security Competencies for the Digital Business 101 IT Security as a Task for the Entire Company 102 Overview: Digitalization as a Risk 103 References 104 Transformable IT Landscapes: IT Architectures Are Standardized, Modular, Flexible, Ubiquitous, Elastic, Cost-Effective, and Se... 105 Laborious Consolidation and Standardization of the IT Architecture 105 Approaches to Reduce Complexity 106 Future IT Landscapes Must Be Easy to Transform 108 Functioning Architecture Management as a Central Prerequisite 110 Overview: Transformable IT Landscapes 111 References 111 The End of the IT Department: IT Experts Become Part of the Business Departments and Are Coordinated by a Dedicated Executive ... 112 The Classic IT Department in Crisis 112 Planning, Control, and Coordination Remains 114 The Development Path from the IT Department to the Executive Portfolio for Digitalization 115 What About the CIO? 117 Overview: The End of the IT Department 117 References 118 Demography, Digital Natives, and Individual Entrepreneurship: Employees Become a Strategic Competitive Factor 119 The Macro Perspective: Demography and Labor Market Trends 119 The Micro-Perspective: The IT Employee Yesterday and Today 121 Current Developments Have a Massive Impact on Attracting and Retaining Good IT Staff 123 Developing HR Management 123 Corporate Culture, Workplace Design, and Management 124 Business Development: Gaining IT Skills Through Site Selection, Acquisitions, and Cooperation 126 Strong Competition Requires Quick Action 127 Overview: Demography, Digital Natives, and Individual Entrepreneurship 127 References 127 Summary and Conclusion 129 Appendix 131 Front Matter ....Pages i-xvi The Digital Revolution: How Technological Trends Change the Business World (Nils Urbach, Frederik Ahlemann)....Pages 1-13 The Development of Corporate IT: From the Beginnings to the IT Department of the Future (Nils Urbach, Frederik Ahlemann)....Pages 15-25 No Business Without IT: IT Is the Central and Indispensable Driver of Entrepreneurial Value Creation (Nils Urbach, Frederik Ahlemann)....Pages 27-40 Development and Operation Are Not Decisive: IT Management Follows the “Innovate-Design-Transform” Paradigm (Nils Urbach, Frederik Ahlemann)....Pages 41-48 Shadow IT as a Lived Practice: IT Innovations Are Developed in Interdisciplinary Teams Within the Business Departments (Nils Urbach, Frederik Ahlemann)....Pages 49-55 Innovations Through Networks: Turning Strategic Suppliers into Innovation Partners (Nils Urbach, Frederik Ahlemann)....Pages 57-64 Focusing on the User: Development Processes are Agile, End-User-Centered, and Merged with the Operation (Nils Urbach, Frederik Ahlemann)....Pages 65-73 Infrastructure as Commodity: IT Infrastructure Services Are Traded on Free Markets and Purchased as Required (Nils Urbach, Frederik Ahlemann)....Pages 75-84 Digitalization as a Risk: Security and Business Continuity Management Are Central Cross-Divisional Functions of the Company (Nils Urbach, Frederik Ahlemann)....Pages 85-92 Transformable IT Landscapes: IT Architectures Are Standardized, Modular, Flexible, Ubiquitous, Elastic, Cost-Effective, and Secure (Nils Urbach, Frederik Ahlemann)....Pages 93-99 The End of the IT Department: IT Experts Become Part of the Business Departments and Are Coordinated by a Dedicated Executive Responsibility (Nils Urbach, Frederik Ahlemann)....Pages 101-107 Demography, Digital Natives, and Individual Entrepreneurship: Employees Become a Strategic Competitive Factor (Nils Urbach, Frederik Ahlemann)....Pages 109-118 Summary and Conclusion (Nils Urbach, Frederik Ahlemann)....Pages 119-120 Back Matter ....Pages 119-122 This book examines the massive changes currently taking place in the business world and commonly known under the label “digitalization.” In addition, it describes the significant impacts of technological innovations on processes, products, services and business models. The digital transformation resulting from these developments leads to disruption for many enterprises and industries. While for many years, IT departments mainly concentrated on fulfilling the requirements of business departments effectively and efficiently by means of high-quality IT services and operations, today’s IT departments are increasingly expected to actively co-design and co-create the enterprise. This book describes how information technology enables innovation for businesses, and how IT departments can proactively and in a timely manner collaborate with the business departments of their corporation to leverage these innovations. It also delineates the implications of digitalization for the structures, processes and people in today’s IT departments. IT leaders and managers who are responsible for corporate IT, as well as practice-oriented researchers, will find valuable inspirations and guidance in this book, the central mission of which is to encourage and enable a more proactive role for IT in the digital transformation processes. "This book demonstrates the impact of digital transformation on IT organizations and their management. It also presents potential risks for technology availability, security and data protection. The authors develop a vision of what IT management should look like in ten years if it is to continue playing an important role in the company. The book seeks to motivate IT executives and managers with IT responsibility to actively adapt their thinking and their IT organizations before they are forced to react to external pressure. Definitely worth reading!" Sven Kreimendahl, Director Business Technology Services, Campana & Schott This book examines the massive changes currently taking place in the business world and commonly known under the label zdigitalization.y In addition, it describes the significant impacts of technological innovations on processes, products, services and business models. The digital transformation resulting from these developments leads to disruption for many enterprises and industries. While for many years, IT departments mainly concentrated on fulfilling the requirements of business departments effectively and efficiently by means of high-quality IT services and operations, today's IT departments are increasingly expected to actively co-design and co-create the enterprise. This book describes how information technology enables innovation for businesses, and how IT departments can proactively and in a timely manner collaborate with the business departments of their corporation to leverage these innovations. It also delineates the implications of digitalization for the structures, processes and people in today's IT departments. IT leaders and managers who are responsible for corporate IT, as well as practice-oriented researchers, will find valuable inspirations and guidance in this book, the central mission of which is to encourage and enable a more proactive role for IT in the digital transformation processes. "This book demonstrates the impact of digital transformation on IT organizations and their management. It also presents potential risks for technology availability, security and data protection. The authors develop a vision of what IT management should look like in ten years if it is to continue playing an important role in the company. The book seeks to motivate IT executives and managers with IT responsibility to actively adapt their thinking and their IT organizations before they are forced to react to external pressure. Definitely worth reading!" Sven Kreimendahl, Director Business Technology Services, Campana & Schott