Fixing the human and technology disconnects in siloed monoliths
- Summary:
- IT has a crucial role in fixing the human and technology disconnects that keep enterprises trapped in siloed monoliths, writes ServiceNow's Jason Sutton
We live in an era of digital transformation – you know that much already. The impact of cloud services, connected devices and data analytics is changing the way every company needs to think about its core operational substrate.
Again, we all know that already – but the surprising thing is, not every organization is really addressing the challenge and moving forward.
The problem stems from disconnected silos that exist in terms of both humans and the technology systems we all use. But before we pinpoint either and look for a route to cross the chasm, allow me to give you a real-world example.
Post-millennial inertia
Without mentioning the firm by name, I was somewhat taken aback recently during a meeting with a large multinational financial institution that is well known for its banking services.
The company was struggling to move many of its archaic systems forward to take advantage of what we could call post-millennial approach to IT.
Where you might imagine well-known global brands to be at the top of their game in areas like AI and data intelligence, in reality, these large enterprises are struggling under the weight of their pre-existing operational dependencies.
These are firms that operate with ‘towers of IT’ that have been developed and established over decades.
These segregated blocks of monolithic system functionality (or silos, call them whatever you like), are a painful reality. Their existence means that a business is only able to look up and down within a ‘single plane’ of movement at any one time.
This absence of orchestration and connected information intelligence makes it very hard to generate new economies of scale. The enterprise lumbers forward, often only propelled by the sheer weight of its existing operation. Whatever the term is for this style of business, it is about as far from being agile, nimble and dynamic as there is.
Data as an asset
To break the monoliths, connect the silos and move towards digital transformation, enterprises big and small need to realize that IT should act as the new foundation stone for next-generation business.
That sounds like a generic statement to make, but let me explain why it’s not.
We can now use technology to build a new connective tissue that integrates every aspect of the business. This total shift to digitization and our propensity for building data-driven business models will one day mean that information – or, perhaps let’s say ‘data value’ – will eventually be shown as an item on the corporate balance sheet.
Digital business now sits at an important intersection in its growth. Whole departments now have the potential to move from being cost centres to becoming self-propelling business units that impact the total economic strategy of the enterprise.
Feuding fiefdoms
But what if one department, or one silo, is holding the rest of the business structure back? Inevitably this will happen. Digital transformation, just like life, is always difficult.
Look at any company hierarchy – there are always feuding fiefdoms where one department or line of business disagrees with another.
What do we do when the human disconnect factor gets in the way of creating new platforms for digitally-connected business?
The approach to take is one of zen-like calmness. New digital business leaders realize that not everybody will accept the new order. Those that fail to embrace new cloud platforms and intelligent device tools will ultimately be left behind by the more progressive element of the business. It’s just a fact of life.
Failure to embrace these new terms for business has its consequences. Firms like our banking services organisation mentioned in the introduction will start to experience higher staff attrition rates than normal in business units.
Business analysts will soon pinpoint these same departments as being responsible for customer loss. In the end, the move to digital business has a certain degree of natural selection about it.
A new connective tissue
As organizations now develop a new connective tissue that joins cloud services with applications, databases, users and ultimately with customers, the silo structures of yesterday start to dissipate.
The cross-silo breakdown brings new opportunities to create multi-channel workflows that drive user and customer experiences. The productivity of individuals increases and a virtuous circle is created.
Getting there will still be tough. C-suite executives will need to step outside of themselves and get a mirror-view of their organisations to see where the shortcomings exist.
It’s a big journey to go on, but it’s one that pays back the efforts expended in multiple benefits. Breaking down cross-silo disconnects and building the new working components of digital business is the business responsibility of our time.