IT is moving from a backroom operation to becoming a diverse supply chain comprising specialists and third party service providers that are working together to provide the intense, data driven support most organizations now require. The new IT manager is less of a developer and more of a supply chain manager, orchestrating the roles of an array of SaaS-based services.
Organizations can now capture more data, however to get full benefit from this – or any benefit – they need to be able to analyze it. Thus internal systems have been tasked with processing more data and with doing this faster – preferably in real time.
As data is being collected from multiple sources, some internal and some external, it often needs to be integrated into one common dataset in order for the organization to use it in their internal analysis.
“Enterprise IT can learn from the supply chain management and ERP approach, which is essentially about managing order delivery chains,” said Juha Berghall, founder of One.ai (Finland) and a seasoned professional in the field of enterprise IT. His deep understanding of the complexities involved in enterprise IT and why creating smooth functioning systems is not as straightforward as it may seem.
Next gen IT consists of a multitude of different kinds of third parties operating with their own terms, processes and tools and somebody has to manage that. That will be the new role of the IT manager.
Balancing Standardization and Customization
The complexity arises when trying to strike a balance between standardization and customization. Mr. Berghall emphasizes that while technologies exist to adapt to various requirements and integrate data flows and processes, the integration space in IT is lagging behind. He advocates for an “industrial revolution” in automation to overcome bottlenecks and propel IT processes forward.
Service Integration and Management
“One of the trends that is really upcoming is this framework called service integration and management, SIAM, which is sort of a model that helps organizations really understand how they should manage vendors and relationships, and what is the governance around it, how you set up everything,” said Mr. Berghall.
As IT has evolved from a back-office function to a separate business that services other businesses, transparency and accountability become paramount. Businesses must ensure responsible acquisition of IT services, mitigating the risks associated with “Shadow IT.”
Companies have the flexibility to acquire more services that can provide them with greater IT capabilities. However, IT departments, managers and teams need to be accountable for what they have implemented.
When it comes to outsourcing IT functions, security and compliance become top concerns. Mr. Berghall stresses the importance of in-house IT teams in managing security measures and adhering to compliance standards. Given that companies often rely on a stack of various third-party services, establishing transparency and control within the supply chain is crucial.
The Evolving Role of IT Teams
“They are the ones who are acquiring services for the business that fulfill the requirements of the company’s security and compliance. They can really play a big role in that, and they should. That’s where the value comes in.”
If you think about the requirements for that, it might be that there are easily six or seven, or even 10 different parties that are participating in delivering certain IT services for the business. So how do you manage the supply chain? How do you have the transparency and control? Because you need to have that, otherwise, you cannot be accountable. Or you are accountable, but you don’t really sleep well when you realize what the complexity of these supply chains are like.”
The Transformative Role of IT
“The new model is like an archipelago which is a multitude of islands, and you have to figure out how you communicate between these islands because at the end of the day, your IT will now consist of multitude of different third parties operating with their own terms, processes and tools and somebody has to manage that.
And typically, it is the enterprise IT and the CIO who have to do that.”
The Benefits of AI in Supply Chain Integration
AI can help manage IT networks, but there are also technologies in place that can adapt to different kinds of requirements and automatically translate this into super customized data models that are then compatible with the other side.
“This has become essential especially in IT supply chains because of this lack of standards. Organizations have to somehow map data flows and processes.
That’s actually something that we also do at One.ai that we have been innovating for years to help the supply chains to be more integrated,” said Mr. Berghall.
Developments in cloud-based computing have provided the processing power to make it possible to automate these data flows.
“So what we see at the moment is that there’ll be a need for sort of an industrial revolution so that we move away from the manual labor of building and maintaining innovations.
And we automate the delivery part by using different kinds of flow technologies. AI can help a lot on that,” said Mr. Berghall.
New Models New Jobs
While certain tasks will inevitably be automated, there will always be a need for human interactions and relationships. IT professions are expected to evolve, generating new job opportunities, especially in Western countries where salary and cost levels play a significant role.
In this dynamic IT landscape, continuous learning and skill advancement are crucial. IT professionals must stay up-to-date with the latest advancements, adapt to new technologies, and develop a deep understanding of how AI can be effectively utilized. Embracing lifelong learning is pivotal to remain relevant and excel in this ever-evolving field.
“People still need people, they want to talk with people, they need to interact… that’s really hard to replace,” said Mr. Berghall.
