IT skills in the business: how CIOs and new strategies bridge the knowledge gap
Why does the IT knowledge gap in business persist?
Imagine your company could optimally use digital innovations, minimize risks in a targeted way and collaborate efficiently with the IT department. But reality often looks different: The knowledge gap between IT and business persists, even continues to grow. Decisive questions remain unanswered: Why does business have such a hard time understanding IT concepts? Why does the IT department often have to write the functional concepts itself? And above all: How can this finally be changed?
In the 1980s the principle was clear: First the business describes its needs, then IT develops, building on that, the suitable data-processing concepts. But this principle often failed in practice: Hardly anyone from the business delivered structured functional concepts. IT experts had to close this gap and familiarize themselves with the business world. Today IT teams master processes, think business-oriented – but the business has hardly moved in the direction of IT.
The digital divide between IT and business: A growth risk
In a world in which digital transformation is decisive for company success, this knowledge gap becomes a problem. According to a study by the Federal Association of German Management Consultants (BDU), every leader should possess IT competencies in order to be able to realistically assess digital opportunities and risks. But the question remains: When does the business realize this dilemma? And who takes the initiative to bring IT know-how into the business departments?
Strategies for closing the knowledge gap
The solution can happen both „bottom-up“ and „top-down“. Companies have several options to integrate IT competence into the business in a targeted way.
1. Integrate IT experts into business departments
An effective way is the move of experienced IT employees into business departments. There they can act as „business partners“ and convey IT knowledge in a practical way. grandega recommends this approach in suitable customer scenarios in order to directly interlock technical and business requirements.
2. Create new IT roles in business departments
Companies can also specifically create new positions, such as „digitalization officers“ or „technology liaison officers“, who act as the interface between IT and the business department. These roles are explicitly designed to actively drive the digital transformation forward.
3. Expand existing roles with IT competencies
A further option is the targeted further training of existing employees. Through trainings and „strategic dialogues“ – as recommended by BITCO3 – companies can establish a common language between IT and business.
4. Form agile teams with IT and business experts
The most radical solution is the abolition of fixed boundaries between IT and business. In agile, interdisciplinary teams, both areas work closely together – analogous to Scrum teams in software development. But here too a basic prerequisite remains: IT and business need a common base knowledge in order to communicate effectively.
CIO on the Management Board: The „top-down“ solution
These four approaches could contribute considerably to improving the collaboration. But they unfold their full potential only when IT strategy is anchored at the highest company level. A decisive step is therefore the integration of the CIO into the management board.
According to a study by PWC3, CIOs are increasingly invited to board meetings – a sign of the growing awareness that IT isn't an isolated cost factor, but a strategic competitive advantage.
Which advantages does the CIO on the management board bring?
Direct influence on strategic decisions
A CIO at board level can ensure that IT strategies flow into company decisions early. This prevents technological developments from being viewed only as a reaction to short-term requirements, but rather as a long-term innovation engine.
Better risk management
Without IT expertise on the board, risk aversion toward IT projects remains high. Companies whose leadership level is familiar with IT topics make more well-founded decisions – and minimize wrong decisions through lacking technical understanding.
Accelerated digital transformation
The CIO can act as a driver of the digital transformation, drive innovations like cloud computing, artificial intelligence and data analysis forward and position IT as a strategic success factor.
Better alignment between IT and business
A CIO at board level considerably improves the coordination between IT and business strategy. As a result, IT is no longer viewed merely as an „auxiliary“, but as an active shaper of company change.
Figures prove the success
A Deloitte study shows that companies with IT-experienced boards achieved an 8% better stock performance.4,5 That shows: IT strategy at the management level pays off.
Conclusion: Network knowledge, shape the future
The IT knowledge gap in business is a growth impediment that companies should tackle in a targeted way. Whether through IT business partners, new roles or agile teams – there are numerous ways to improve the understanding between IT and business. But a sustainable change also requires structural adjustments. The integration of the CIO into the management board is therefore a central lever to anchor IT competence at the highest level and to actively steer the digital transformation.
Are you ready to close the IT knowledge gap in your company? grandega accompanies you with comprehensive expertise in IT transformation, agility and change management. Talk to us – together we'll shape your digital future.
Sources:
[1] https://bitco3.com/angebot/strategische-dialoge/
[3] https://www.cio.de/article/3682703/10-trends-in-der-digitalisierung.html
[6] https://blog.itil.org/2014/11/grabpizza-business-it-alignment/
