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Why "Running IT As a Business" Is a Bad Idea

snydeq sends along a provocative piece from Infoworld, arguing that the conventional wisdom on how IT should be run is all wrong. "Bob Lewis dispels the familiar litany that 'IT should be run as a business,' instead offering insights into what he is calling a 'guerilla movement' to reject conventional 'IT wisdom' and industry punditry in favor of what experience tells you will work in real organizations. 'When IT is a business, selling to its "internal customers," its principal product is software that "meets requirements." This all but ensures a less-than-optimal solution, lack of business ownership, and poor acceptance of the results,' Lewis writes. 'The alternatives begin with a radically different model of the relationship between IT and the rest of the business — that IT must be integrated into the heart of the enterprise, and everyone in IT must collaborate as a peer with those in the business who need what they do.' To do otherwise is a sure sign of numbered days for IT, according to Lewis. After all, the standard 'run IT as a business' model had its origins in the IT outsourcing industry, 'which has a vested interest in encouraging internal IT to eliminate everything that makes it more attractive than outside service providers.'"

4 of 364 comments (clear)

  1. Re:He is correct by Xiaran · · Score: 4, Informative

    And in some places I have worked you would now get the following...

    Were you authorised to show these people CutePDF? Who gave you permission to to install CutePDF on their machines? Did you fully evaluate CutePDF to certify that it is the Best of Breed? Are their security implications to using CutePDF? Who is now responible for maintaining CutePDF? Who is going to train users on its use? Has it been fully documented? Are change control and the standard image build team aware of this?

    In such environments it is much easier and healthier to just not care any more.... the above situation is not uncommon.

  2. Re:He is correct by thetoadwarrior · · Score: 4, Informative

    I don't care how good the pizza tastes if it's made with pig anus and old fore skin. So how something is made does matter under certain circumstances.

  3. Re:He is correct by Pojut · · Score: 4, Informative

    This occurred in the call center where a friend of mine works. Their clients only required a handful of calls to be recorded each month, so rather than invest in an expensive system to record everything, they do it by hand (they use Cisco Softphone, so it isn't as difficult as it sounds). They were going to purchase him a Creative sound card along with some crap Creative recording software. He asked if he could just use Audacity instead, since it is rock solid, he knows how to use it, and since it is under the GNU there aren't any legal issues. Their answer? Nope. Because it is open source, their IT department "determined" its use could lead to a security risk.

    Sometimes, the asshole is puckered way too tight.

  4. Re:Sounds like a cop-out for bad customer service by natehoy · · Score: 4, Informative

    In olden days when I was a young IT pup, IT was generally considered to be a subsidiary of Finance, which made sense at the time since most computing was done to crunch numbers, so we worked for the number crunchers. Later, as IT evolved, it tended to stay under Finance because people who do inscrutable things are just seen as similar in the eyes of management. This led to serious conflicts as, say, order entry or inventory management wanted changes but all fell subservient to IT's overlords in Finance. Finance, understandably, didn't want to spend their budget supporting other department's goals.

    Eventually, IT started either being broken out into subgroups and living with their business areas as scattered fiefdoms, or centralized and moved up the management chain so the CFO and CIO were on the same level. As this happens, managing the IT teams becomes a unique challenge, because IT is in so many ways integrated into all aspects of a company in ways that other organizations simply aren't. So you either have (potentially well-managed and aligned) fiefdoms that use different platforms that can't talk to each other, or you have a group that tries to meet everyone's needs with as few discrete solutions as possible and, at best, succeed partly at satisfying everyone.

    Money spent on IT is almost always considered "lost revenue", and a holdback from the old Finance days of IT is that every department needs to justify its existence. Thus the chargeback model was born. So concepts like charging rent for floor space (forcing managers to vacate space that will never be occupied to save their "rent" costs, and cramming their people into spaces too small for them to work effectively) or finding a profit model for IT (forcing managers to forgo any systems changes that didn't actually save measurable amounts of money, even if the ideas really would help in the longer term) were born to try and force the idea of efficiency into each department.

    Once you do that, you will always find that you can get a specific task done in the short term by hiring someone who can just solve the problem at hand without being bothered by all the consequences like incompatibility with existing processes and systems, long-term support costs, etc.

    You'll also almost always find it's cheaper to do a crappy job on your project now while your expense code is on the line, and leave the cleanup to future projects who have to deal with it and spend more money to use what you've built (but it's on THEIR expense code).

    Plus, of course, IT itself is given very finite resources at most companies (which is appropriate) and has to fulfill specific goals of the company to "earn" those resources (which is also appropriate).

    But there's generally a lack of appreciation for the benefits that creative IT can bring to a company, so few companies give their IT staff much in the way of leeway to explore new technologies (outside those mentioned in CIO magazine and implemented "right away" with little input as to whether it's the right solution for any actual problem the company is facing, or even what the solution is meant to do, and most of those are explored by a consultant anyway).

    --
    "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."