The Three Models Of Digital Transformation And IT Transformation (Knowledge Byte)

IT transformation refers to the development, operation, and support of information systems and IT services. As demonstrated in the diagram, it might encompass the decentralization of the IT function and its integration with digital lines of business.

The term “IT transformation” refers to a significant shift in which business and IT are treated as distinct organizational functions. The transformation signifies an improvement in the company’s ability to provide IT services to its customers. When business and IT do not function as separate organizational functions and are inextricably linked, as they are in most digital organizations, the term “IT Transformation” is inappropriate. The distinction between the application of digital technology and its realization is still useful. It will, however, only be a part of the digital transformation.

Let’s talk about the transformation models shown in the previous diagram.

Model1:

Organizations are managed separately from their IT service providers, whether internal or external, before undergoing a digital transformation. An IT service provider is responsible for managing IT resources to develop and deliver IT products and services. A service consumer, on the other hand, is concerned with the administration of its goods, services, and resources, which may include those provided or supported by the IT service provider. An organization acting as a service consumer can influence the service provider’s management.

Model2:

The management, resources, goods, and services of both the IT service provider and the service user can be transformed. These changes may be linked, but they have little impact on how the two organizations collaborate or the role of IT in the service consumer organization.

Model3:

When businesses go through a digital transformation, the role of digital technology in the service consumer’s business changes dramatically. Some or all of the following activities are included:

• The organization’s products and services are being digitized.
• Management procedures in the organization are becoming digitized.
• Digitization of a substantial portion of the company’s assets
• IT management and business management must be integrated (development of a partnership with the IT service provider or the merging of management practices)

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