Can IT rise to the digital challenge?  

29 October 2018:

Rapid advances in digitization are raising expectations for IT, and the results from the latest McKinsey Global Survey on the topic suggest that the function faces a challenging dual mandate.1 IT organizations are asked to innovate at breakneck speed in support of their companies’ ambitious digital aspirations (85 percent of respondents want their operating models to be mostly or fully digital, which only 18 percent currently have), and simultaneously execute the core IT tasks that keep the organization running—an area where effectiveness has been on the decline.

The survey responses confirm that strong performance on core IT tasks (for example, designing, delivering, and managing IT) is not only nice to have but also enables faster progress against a company’s digital goals. At organizations with the best-performing IT functions, respondents say they are further along than their peers in their digitization efforts. They have leadership teams that are more committed to digitization, and they have embraced more of the technological and operating-model changes needed to support an increasingly digital organization. These changes include adopting agile practices within IT and across the business, expanding the suite of technology leaders, and focusing on talent management—a perennial and growing challenge for IT. Talent issues continue to rise in importance as a reason for IT’s overall performance troubles, and most respondents, including the best IT performers, expect major workforce change ahead. On average, respondents expect 40 percent of their IT workforces will need to be fundamentally retrained or replaced in the coming years to close the skill gap and meet the IT organization’s future needs.

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Source: McKinsey

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