common it org structures in the cloud-enabled world filein the cloud-enabled world earlier this...

Retail SMB & Enterprise SMB & Enterprise Financial Services STRATEGIC STEERING ARM Many companies add strategic roles or teams to think proactively about how technology can better serve people in the organization and support the direction of the organization. In this structure, IT is given a role to help influence strategic business decisions. • Promotes a culture of empathy towards end-users • Arguably more rewarding for IT employees • Anchored by “customer-centric” philosophies • More challenging to retain engaged employees • Loss of control/ability to maintain brand • Change of skillsets (need for people skills) • Low visibility of changes across IT teams OUTSOURCED IT CLOUD VENDORS IT ORGANIZATION BUSINESS UNITS Common IT Org Structures in the cloud-enabled world Earlier this month, we discussed three IT Org Structures that emerged from research Microsoft conducted on the changing landscape of IT Organizations. Let’s take a deeper dive into how this might look for your organization, the pros and cons of each structure, and relevant industries. DECENTRALIZED By locating IT directly with end-users, decentralized organizations increase the accountability of technology to business results. Embedded in the business units, IT can better understand specific needs and communicate back to other IT service teams. CUSTOMER-CENTRIC These organizations function like “services” organizations, approaching technology with a focus on serving internal “customers”. IT functions as service brokers between outsourced vendors and internal business units. PROS CONS • Improves responsiveness to business needs • Aligns to how teams work • Increases empathy between end-users/IT • Empowers employees to influence IT solutions • Harder to manage distributed network • Can create security vulnerabilities • Lack of clear ownership • Difficult to manage company-wide IT spending PROS CONS ITI CIO ITI ITI Marketing Finance Human Resources Retail Tech CPG Large Enterprise • More direct involvement in strategic decision making processes • Considers holistic view of company • Tension around reporting configuration • Often difficult to understand the holistic view of the company Industries/Company Sizes Industries/Company Sizes Industries/Company Sizes PROS CONS IT ORGANIZATION Support Development Infrastructure CIO Strategy Team IT Regional Manager IT Regional Manager Marketing Marketing Manager Marketing Employees Finance Finance Manager IT Field Engineer Finance Employees IT ORGANIZATION BUSINESS UNITS CIO IT Director IT Field Engineer Manufacturing

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Page 1: Common IT Org Structures in the cloud-enabled world filein the cloud-enabled world Earlier this month, we discussed three IT Org Structures that emerged from

Retail SMB &Enterprise

SMB &Enterprise

FinancialServices

STRATEGIC STEERING ARM Many companies add strategic roles or teams to think proactively about how technology can better serve people in the organization and support the direction of the organization. In this structure, IT is given a role to help influence strategic business decisions.

• Promotes a culture of empathy towards end-users• Arguably more rewarding for IT employees• Anchored by “customer-centric” philosophies

• More challenging to retain engaged employees• Loss of control/ability to maintain brand• Change of skillsets (need for people skills)• Low visibility of changes across IT teams

OUTSOURCED ITCLOUD VENDORS

IT ORGANIZATION BUSINESS UNITS

Common IT Org Structures in the cloud-enabled worldEarlier this month, we discussed three IT Org Structures that emerged from research Microsoft conducted on the changing landscape of IT Organizations. Let’s take a deeper dive into how this might look for your organization,the pros and cons of each structure, and relevant industries.

DECENTRALIZED By locating IT directly with end-users, decentralized organizations increase the accountability of technology to business results. Embedded in the business units, IT can better understand specific needs and communicate back to other IT service teams.

CUSTOMER-CENTRIC These organizations function like “services” organizations, approaching technology with a focus on serving internal “customers”. IT functions as service brokers between outsourced vendors and internal business units.

PROS CONS

• Improves responsiveness to business needs • Aligns to how teams work• Increases empathy between end-users/IT • Empowers employees to influence IT solutions

• Harder to manage distributed network• Can create security vulnerabilities• Lack of clear ownership• Difficult to manage company-wide IT spending

PROS CONS

ITI

CIO

ITI

Marketing

Finance

HumanResources

RetailTech

CPG LargeEnterprise

• More direct involvement in strategic decision making processes • Considers holistic view of company

• Tension around reporting configuration• Often difficult to understand the holistic view of the company