It is not uncommon for business leaders to feel frustrated or overwhelmed by the complexity of IT solutions and the apparent resistance of their systems people to accommodate their every need. IT on the other hand is also frustrated and overwhelmed by a plethora of seemingly unrelated business requirements that it is asked to cater to at the expense of increasing complexity and risk.
While it can be argued that the role of IT is precisely to cater to those business needs, it is also true that managing complexity and risk constitute a business responsibility. More than one serving another, business and technology are mutually symbiotic. A first step into an orderly decision process regarding technologically enabled business solutions leading to a less emotionally charged discussion, is to frame it under the following perspectives:
- Core Competency and Transactional Work Management
- Functionality and Complexity
- Standard vs. Local
- Shared Services and Business Process Outsourcing Readiness
Core Competency and Transactional Work Management
Many successful companies pride themselves on their entrepreneurial spirit and uniqueness and this is sometimes reflected in most of their processes. To be unique in an efficient manner, it is important to distinguish between the competencies that constitute a competitive advantage and the processes that, although essential to business, are not differentiating. Typically, activities like accounts payable, accounts receivable or indirect procurement can be streamlined using standard policies, tools and configurations.
Functionality and Complexity
Departing from standard processes and tools increases complexity, risk and cost. While a seemingly small functionality change can have a significant effect in complexity, its value contribution to the company might be marginal. This is not to say that business functionality and usability should not be pursued, but that an objective analysis should compare its benefits to the total organizational cost.
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