What Is Business Led IT?

Business led IT or technology is a growing trend where companies and organizations purchase technological systems, cloud-based software, and platforms from consultants and businesses outside their IT departments.

It’s an innovative means to inspire more business-focused solutions from outside professionals and software experts that enhance all cloud-based operations within a firm, including human resources, software development, supply chain, and developing apps to support a wide range of products and services.

Case studies indicate a significant shift in business led IT, with at least 60% implementing a digital transformation and nearly 90% of organizations have adopted a digital strategy. At least one-third of companies outperforming their competitors have fully integrated cloud-based infrastructures and digital strategies for their business.

While there are many challenges to implementing business led IT strategies, it’s a trend showing tremendous growth in many enterprises, with excellent prospects for the future.

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How Does Business Led IT Work?

Many companies previously relied on an internal IT department to support their digital systems, including IT support for employees and customers.

In contrast, business led IT involves the purchase of a cloud-based platform and related technology from an outside company that aligns the infrastructure of the cloud system to fit the needs of the business’s model, operations, and goals.

The software is not only purchased from an outside company; it’s also customized to meet specific business functions, departments, and deadlines. These experts prioritize the needs of each company or client and provide consulting services, training services, and tools to integrate the system successfully.

The Advantages and Drawbacks for Business Led IT

boss with employee in office

There are many advantages to implementing software from outside the IT department, which can provide new, innovative technology with more excellent support and resources.

While many business leaders focus on product-led growth and marketing strategies to improve the customer experience, human resources may find that the digital transformation presents a few challenges for employees and their ability to adapt to a new framework.

The Benefits of a Business Led IT Product Team and Digital Strategy

Business led IT offers excellent advantages for start-ups, moderately sized organizations, and large businesses, including:

  • It’s a vital way to stay ahead of the competition, as many companies are implementing business led technology as a significant part of their strategy and growth.
  • There are more extraordinary reports of customer success with convenient apps, tools, and technology support, which leads to a positive customer experience.
  • Technology helps streamline business processes through automation, reducing staffing costs and increasing productivity.
  • There is a great potential to employ a larger remote workforce, which offers complete access to all the online tools and resources required by employees and vendors without working at a specific site.
  • There are improved communication channels with clients due to having access to e-signature technology, uploading large amounts of data, and streamlining multiple processes to save time and effort.
  • Customers generally experience better results with companies fully integrated with business led IT, as these systems are faster and provide results efficiently.

All areas and business units benefit from a solid platform optimized for the best results, from the chief information officer and human resources consultants to achieving customer success through improved AI (artificial intelligence) and automated systems.

Many organizational structures benefit from business led IT innovation, including a wide range of public sector agencies and private sector companies such as banking, finance, telecommunications, and manufacturing.

The Challenges of Implementing a Business Led IT Plan

While many companies are eager to implement an operational model with software development through business led IT, significant changes to an operating model or organizational goals may not be well received by everyone involved.

Some drawbacks that may occur during a digital transformation include employee concerns, including the ability to integrate into a new framework that may change staffing structure and responsibilities.

Technology decisions often include training for current and new employees, assessing capability within each product team, and setting new goals that may take time.

Initially, some companies may experience a temporary setback during a digital transformation, and several challenges may occur during this process:

  • There may be a slightly higher security risk when an outdated software system is replaced with a more secure cloud-based system, with updated protections, firewalls, and improved backup. Until the new digital framework is fully implemented, the outdated system may be at greater risk of malware, or unauthorized access, which must be quickly addressed once it is entirely replaced with a more robust framework.
  • The initial costs to implement a business led IT system may be expensive upfront, which may be difficult for smaller companies and start-ups to manage.
  • Establishing policies for employees accessing online platforms is vital, as there is a higher chance of distraction. This process is primarily concerned when the lines between work-related research, tasks, and online resources for personal or non-work-related searches may not be well defined. These policies may take a while to develop, though they are vital to establishing clear boundaries so that productivity and employee performance remains high.

Smaller organizations without the technology resources and training to implement a business led IT platform may initially find the plan too challenging.

Some companies may have a wide range of staff skills, which may not easily fit into a new software program, which may lead to reorganizing some business units, setting up training sessions, and reassigning or changing the staffing structure completely.

boss shaking hands with coworker

Summary

There is a significant shift towards business led IT and processes across many industries and organizations globally.

While there are various hurdles to overcome for smaller businesses or operational models with outdated technology, business led technology offers a competitive advantage in the interim and long term.

Digital transformation offers tremendous opportunities for companies to flourish with product-led growth by providing innovative processes that enhance customer relations, service quality, and more outstanding communication between business units and teams for results aligned with the company’s goals.

Software development is a key part of organizational success, offering excellent opportunities for growth within a company, global corporation, and career development.

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