Revisiting IT basics for modern business success
Strengthening core IT practices to ensure seamless integration, security, and efficiency in the face of modern business challenges.
Getting back-to-basics technology with IT
In the ever-changing world of technology, leading organizations often focus on the newest innovations, from AI to blockchain. Yet, a growing number of CIOs are realizing that amid the push to adopt these cutting-edge technologies, their organizations are failing to execute fundamental IT functions properly.
Today's companies face persistent difficulties managing key IT fundamentals. Many organizations falter because of broken asset-management models, faulty configuration management, and lack of visibility into IT spending. M&A activities and insufficient investment in core IT processes further compound these inefficiencies.
In addition, organizations often struggle with delivering projects swiftly, managing IT expenditures, and recovering from incidents. Federated IT organizations, where multiple business unit CIOs operate independently, can present their own challenges to standardization and alignment, leading to redundant efforts and a lack of visibility into IT spending and operations.
The solution lies in a back-to-basics technology strategy that emphasizes revisiting and strengthening foundational IT practices. This strategic shift towards a back-to-basics technology approach is crucial for ensuring that core IT operations remain robust and aligned with business goals, even as advanced technologies like AI are integrated.
A turn towards fundamentals
Organizations are placing renewed emphasis on returning to the foundational practices prevalent a decade or more ago. CIOs are increasingly seeking assistance to evaluate IT maturity and governance, focusing on critical aspects like asset management, process consistency, and system resiliency.
Several factors are catalyzing this reevaluation:
01
Merger and acquisition activity
M&A activities often necessitate a reevaluation of IT processes and systems to ensure seamless integration and operational efficiency of the combined organization's IT system.
02
CIO turnover
CIO terms tend to last only a few years. When a CIO steps in, there’s a natural tendency to review current operations, identify weaknesses, and improve existing IT operations to align with their strategic vision.
03
Inefficiencies in IT processes
Many organizations struggle with delivering projects quickly, managing IT spending, and recovering from security incidents. These issues highlight the need for better IT processes and visibility.
04
Poor data quality
The integration of advanced technologies such as AI requires a solid foundation. Organizations must ensure foundational practices are in place and remain robust and aligned with strategic business goals to support these new technologies effectively.
Taking a back-to-basics approach
Organizations pursuing a back-to-basics strategy should prioritize effective communication both within the IT department and across the entire business framework. This is crucial to withstand disruptions and align with strategic objectives. Establishing robust technology foundations is necessary to fully leverage new technologies. This approach entails significant shifts, including:
Strategic organizational changes
- Shift towards a more integrated and business outcome-driven technology strategy. This includes breaking down silos and adopting a startup mindset to drive business outcomes.
- Focus on ensuring that technology benefits directly align with business objectives. This involves pushing for clear visibility and alignment with strategic business goals when implementing new technologies.
- Identify and prioritize core functions that are critical for operations. Simplify the structure to enhance efficiency and effectiveness. Focus on key performance indicators (KPIs) and objectives and key results (OKRs) that link directly to business objectives.
- Review IT governance and compliance and revise if necessary.
- Foster a culture where technology is seen as a business-wide responsibility, not just the domain of the IT department.
Risk and security
- Ensure all systems and applications are regularly updated and patched to mitigate vulnerabilities.
- Adopt secure default configurations for hardware, software, and network devices to minimize risk exposure.
- Implement reliable and regular data backup procedures and recovery plans to safeguard against data loss. Develop and regularly update business continuity and disaster recovery plans to ensure preparedness for various disruptions.
- Develop and regularly update comprehensive security policies to reflect new threats and compliance requirements.
- Utilize continuous monitoring tools and practices for real-time detection of security incidents and unusual activities.
Managing tech debt
- Allocate portions of the IT budget to address tech debt regularly. And view tech debt reduction as necessary for maintaining competitiveness and operational efficiency.
- Ensure continuous pay-down of tech debt as you modernize to maintain operational efficiency and meet modern business needs.
Implementing a back-to-basics action plan across the organization
Driving a back-to-basics strategy demands defining necessary standards across business units, creating shared accountability models, and centralizing visibility while retaining management at the federated level. This requires establishing cross-business-unit governance and enforcing compliance through telemetry.
1
Define non-negotiables: Establish core processes, platforms, and data models that every business unit must align with.
2
Create shared accountability models: Develop RACI (Responsible, Accountable, Consulted, Informed) matrices for operations, change management, incident management, and configuration management database (CMDB).
3
Centralize visibility, not management: Implement a centralized platform with federated roles and scoped applications to maintain visibility without centralizing management.
4
Establish cross-business unit governance: Include local IT leads in policy, standards, and priority setting to ensure alignment across business units.
5
Enforce with telemetry: Use dashboards to monitor compliance on basics such as patching, CMDB completeness, and incident closure rates.
Concluding thoughts
The back-to-basics technology approach isn’t just a return to previous practices. It is an essential recalibration, ensuring that IT operations are fortified to support contemporary technologies. By focusing on foundational IT functions, organizations can secure their competitive edge and evolve strategically amid technological advancements.
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Jeoung Oh
Technology Strategy & Architecture Leader, KPMG US
Will DeMille
Managing Director, Technology, KPMG US
Jeoung Oh
Technology Strategy & Architecture Leader, KPMG US
Will DeMille
Managing Director, Technology, KPMG US