Taming the hornet’s nest: How to solve a complex digital ecosystem
Digital transformation has never been easy. According to Gartner®, “on average, only 48% of digital initiatives meet or exceed business outcome targets.” Strategies to introduce new technology can quickly create a complex digital ecosystem that blocks the business from achieving the intended benefits.
According to Zylo’s SaaS Management Index Report, the average organisation has a stack of 269 apps. A large portfolio of tools can result in siloed teams, poor software governance, and disconnected data. Adding technology to this mix can be challenging. This has created a “hornet’s nest of complexity.”
As organisations adopt AI, they risk smashing open the hornet’s nest—turning complexity into chaos. How can IT leaders address these challenges to deliver successful digital transformation for the business?
Stay aligned with business strategy
The role of IT has become much more closely aligned with overall business strategy. In fact, 67% of IT leaders now say they are more focused on strategy and vision than they were in the past, according to ServiceNow research on IT leadership. As tech becomes embedded across more processes, chief information officers (CIOs) are transitioning into “chief everything officers.”
CIOs must ensure all elements of digital transformation align with the organisation’s wider objectives. Strategic portfolio management can help structure IT team priorities to reflect business-level goals. “Without a goal framework, it can be chaotic and uncoordinated because you can’t see dependencies,” says Jon Tickle, head of the ServiceNow platform at Centrica.
A more defined structure has streamlined operations for Centrica. “Now, we have a hierarchy of strategic priorities and goals. I can see that my product teams are working on the right things in the right sequence, and I can understand the dependencies between those initiatives.”
Linking the IT team’s efforts to the organisation’s objectives can also be motivating. “We want to get every single task that somebody's working on aligned with the outcomes of the organisation,” says Jon Burt, head of enterprise architecture at Manchester City Council.
“It's about creating that golden thread so people feel transformation programmes are worthwhile and have a real impact. If you don't get that feeling when you work in a local authority that impacts people's lives, when will you feel it?”
In turn, IT leaders can help steer business strategy. According to our research, 81% of IT Pacesetters—the top IT performers—have a leading or major role in developing digital transformation strategies.
Inform decisions with visibility
Almost all IT projects take place amidst a blend of legacy technologies and processes. Successfully transforming a service requires clear visibility into what’s behind it: the architecture, which applications it consumes, and how data flows between it and the digital ecosystem. Mapping this out can make it easier to set a strategy and achieve the desired outcome.
Tickle says: “When deciding on a technology strategy, it’s very useful to be able to say, ‘This is what I'm spending on software. This is the number of users I've got and their utilisation of it.’ Lots of work involves trying to get product owners to collaborate and share data—which is a benefit of working with ServiceNow.”
Greater insight can also enhance service operations. Quickly understanding the impacts of issues makes the repair process smoother.
Work with the business
Processes and technology are only two parts of the digital ecosystem. The third is people. The success of any initiative depends on how effectively IT teams work with others in the business.
Collaboration across the organisation is crucial to show value and encourage technology adoption. At Manchester City Council, it helps the workforce better understand the impact technology can have on their work.
“We work closely with social workers to underline the value of technology and why it’s important to, for instance, input data correctly. It’s about speaking the language of your organisation to change people’s mindsets. We’re not just an IT function providing systems, but a team enabling the organisation to be more digitally advanced,” Burt explains.
Promoting digital upskilling is also important to ensure technology delivers for everyone. Our IT leadership research found that 86% of all IT leaders now play a lead or major role in building knowledge—helping improve technical and data literacy among employees.
Contain the chaos
Transformation always takes place in a complex context, making it critical to simplify the digital ecosystem when introducing AI. This consolidation process should happen in parallel with an assessment of where AI can add the most value, through productivity gains or cost savings.
Only by aligning with business objectives, gaining true visibility into the technology landscape, and working closely with people can you tame the hornet’s nest.
Get more insights in our research report: An innovation roadmap for IT leaders.