Aligning IT and business to establish a cross-organizational approach to data initiatives is indispensable for organizational success in today’s data-driven landscape.
In today’s business landscape, data reigns supreme, driving decision-making, innovation, and organizational success. Yet many organizations struggle to harness their full power due to a disconnect between IT and business teams. This division not only hinders progress but also weakens the foundation for impactful insights. Traditionally, sales CEOs led the charge, but now, Product CEOs—who are deeply involved in their company’s offerings—are on the rise. These leaders understand the importance of upskilling to avoid second-guessing and bridge gaps between teams. This is especially important as the reality of disconnected systems significantly impacts business outcomes, with some teams spending up to 60% of their day on redundant tasks, according to a Harvard Business Review study. This inefficiency contributes to “disconnection debt,” leading to poor outcomes and weakened KPIs.
To overcome this, business and IT leaders must align their goals and foster cross-organizational collaboration with a top-down approach that emphasizes streamlined communication and workflow. With this, ensuring data visibility and accessibility is equally critical, as it empowers teams with the insights needed to make informed decisions and drive innovation. Only then can digital transformation truly take hold across the business.
See also: The Year Ahead: Trends in Digital Transformation
The Big Divide Between IT and Business
The relationship between IT and business teams has traditionally been disjointed, with IT often viewed as a separate entity focused solely on technical tasks rather than strategic alignment with business goals. However, the rapid evolution of emerging technologies such as AI and cloud computing has catalyzed the need to shift away from this dynamic.
With AI enabling the use of natural language, business leaders know they can extract valuable insights from complex datasets they once were not able to comprehend. Just as the emergence of AI tools has revolutionized data analysis for IT teams, AI-driven natural language processes have enabled business leaders to instruct their teams to make informed business decisions based on data-driven insights.
Some may assume this shift would bring teams closer together, but it has the potential to cause problems if business leaders are not able to effectively communicate and collaborate internally with IT leaders to ensure they are getting the whole picture of an organization’s data, and how it relates to accomplishing business goals. Data—oftentimes running across various platforms—is complex and nuanced, and it is critical that business leaders make decisions on up-to-date and holistic data. On the other end, IT teams must understand how their various projects correlate to tangible business growth so that they can adjust their projects to better align with business priorities and communicate the resources they need to accomplish those tasks.
A new era of collaboration and partnership must emerge between IT and business teams— one that fosters greater communication, alignment, and shared accountability for achieving organizational objectives. This will ultimately lead to more agile, adaptive, and customer-centric enterprises. So, what are the first steps for IT and business leaders?
Actions Toward Alignment & Strategic Collaboration
Step 1: Reduce Technical Complexities:
To effectively align business and IT professionals, simplifying processes and making them universally accessible is crucial. This starts with minimizing and consolidating technical debt—outdated or inefficient technologies that become increasingly cumbersome to maintain as new solutions emerge. McKinsey reports that 30% of CIOs estimate technical debt comprises 20-40% of their entire technology estate.
By streamlining application portfolios, organizations can significantly reduce complexities. For instance, navigating multiple software platforms with overlapping functions can hinder productivity and frustrate employees. Consolidating these areas alleviates IT burdens, accelerates workflows, and reduces costs. This approach not only enhances operational efficiency but also improves organizational agility, enabling quicker responses to volatility, better cybersecurity preparedness, and faster recovery from potential attacks.
Step 2: Create Open Channels for Constant Communication:
One prevalent misconception is that implementing new technology automatically aligns IT and business leaders. While technology plays a crucial role, true alignment requires more than just adopting the latest tools. Effective goal setting involves fostering a culture of open communication and establishing clear and effective channels that align the strategic objectives of both IT and business teams.
A hands-on CEO who is actively involved in the IT and technological innovation process is critical to achieving company-wide alignment. Leadership engagement ensures that both IT and business teams prioritize in unison, navigate the complexities of data compliance, and adhere to government standards. Simply investing in technology, like AI, without addressing underlying cultural and strategic differences can lead to misalignment and inefficiencies.
Although AI offers solutions that make data more accessible to non-technical employees, it is still important that teams utilizing this technology align on goals to make the most out of the investment. Channels for open communication can include recurring priority alignment meetings, shared internal communication platforms, and joint planning sessions that facilitate easy feedback loops. With an open channel of communication, business, and IT teams can work together toward digital transformation and build a culture of collaboration throughout their organization.
Step 3: Make Data Visible and Accessible:
Data management and analytics should not be the sole responsibility of IT teams. In reality, data-driven decision-making requires active involvement and collaboration from both IT and business leaders. While IT teams manage the technical aspects of data infrastructure and security, business leaders play a crucial role in defining data requirements, interpreting insights, and driving strategic initiatives based on data-driven information.
Effective alignment involves recognizing data as a shared responsibility and fostering collaboration between IT and business teams to leverage data effectively. Both IT and business leaders need to align on employee training within data management systems to ensure knowledge is easily accessible and shareable across the business. Low-code, no-code tools, when paired with open lines of communication across teams, open the level of visibility into an organization’s data and offer a great solution for both IT and business leaders looking to open access to data-driven decision-making across the business.
Step 4: Regularly Reevaluate Goals:
Achieving alignment between IT and business leaders is not a one-time effort. Alignment is an ongoing process that requires continuous communication, collaboration, and adaptation. Business needs and technological capabilities evolve over time, requiring IT and business leaders to regularly reassess priorities, realign strategies, and address emerging challenges. When IT and business leaders enable a culture of collaboration and open feedback loops, goals will be aligned, and digital transformation can take place. By treating alignment as a dynamic and iterative process, organizations can also sustain effective collaboration and drive innovation in a rapidly changing business environment.
A Final Word on Aligning IT and Business
Establishing a cross-organizational approach to data initiatives is indispensable for organizational success in today’s data-driven landscape. By consolidating data ecosystems, fostering collaboration, and unifying efforts, organizations can unlock the transformative power of data, driving innovation and securing a competitive edge. With this, organizations can then unlock true digital transformation, allowing IT and business visionaries to align on goals and set their businesses apart from the competition.
