IT organizations will divide into two distinct types in the next five years, John Mahoney, vice president of Gartner Research, told the analyst group’s European CIO convention in Barcleona last week.
“Most large IT organizations will divide into at least two parts by 2012, one working on sourcing and delivery of infrastructure and applications, another on architecture and change centered on the business assets of process, information and relationships,” he said.
According to Mahoney, IT leadership roles are evolving in parallel with the IT organizations, and the strategic IT leadership role will split into two roles: “business technology and business network leaders.” Also, a new business transformation role will surface as CIOs become more accountable for information, processes, relationships and transformation.
“A new IT organization type is emerging — one that will take the lead on information and process. While it will grow from an IT base, its primary focus will be business transformation and strategic assets of information, process and relationships. When mature, it may no longer be identified as an IT organization.”
Mahoney described five types of IT organizations, defined by how they fit in the business today:
— Type 1: Heritage, is where technology is tactically deployed to maintain the business;
— Type 2: Aligned, is where the focus is on aligning IT with the business
— Type 3: Engaged, where IT operates as a service;
— Type 4: Pervasive, is where IT touches all aspects of the business; and the
— Type 5: A community with “an alternative evolutionary path” where IT is embedded in business and managed by business executives as part of their regular roles. For instance, in universities the academic community creates and manages their own systems to suit unique research needs.
Mahoney said the Type 4 is a new type of IT organization that Gartner sees emerging. Type 4 IT organization will not just follow, but drive business transformation project.
“As outsourcing continues to increase and some aspects of IT become commoditized, Type 1 roles are diminishing or transforming to Type 2 and many Type 2s to Type 3s.”
“The business technology career path is still important although the Type 1 role of internal head of IT function will diminish. Today, and in the future, several different types of role use the CIO job title, but the differences are large and growing,” he said.
