The document discusses how IT departments are experiencing seismic shifts as technology becomes more decentralized and users demand greater control, noting this has led to the rise of "shadow IT" with users bypassing IT; it then provides 10 new rules for modern IT departments to focus on enabling the business through service, communication, and innovation while embracing these changes.

1. Nick Giglia
NJG & Company
April 2013

3.  Yearly IT Spending
exceeds $400 billion
(Source: Gartner).
◦ Over 80% is spent just to
“keep the lights on.”
 Innovation and forward-
looking planning are
secondary concerns.
 Management principles
have not substantively
changed.

4. We’ve been here before.
 Computers revolutionized work
when they were introduced into
the office.
 Today, IT departments from
New York to New Delhi are
experiencing another seismic
shift.
 What are the key factors?

5.  Investment in fixed assets is no
longer needed to achieve scale.
 “Cloud computing” brings large
company functionality to small and
medium-sized businesses.
 Almost 1/3 of tech spending is
occurring outside “IT.”
 Users have a greater ability and
capability to bypass IT.
 The ultimate conclusion is the Rise
of “Shadow IT,” with Enterprise-
Class Weapons…and they’re not
afraid to use them.

6.  IT is no longer the only place where
a company’s technical knowledge
resides.
 Mobility has enabled an “always-
on” culture and expectation.
 Users have increasingly demanded
to bring their own devices to work.
 For the first time, the home is the
major driver of enterprise
technology.
 Many business users have richer
computing experiences at home
than at work.

7. Then: Supermen Now: Keystone Kops

8. IT Business
Do less work Do better work
(Governance and Control) (Innovation and Adaptability)

9.  A new strategic intent for IT
 A roadmap for getting there and running a
21st Century IT department
 Guiding principles to think about as your
organization decides how to balance between
governance and innovation/adaptability
 Not a cookbook, but a process to think
through the tough choices and be confident
in your decisions

10. Stop running a 21st Century business with a
20th Century IT department.
Not This
This

11. •Rule 1: IT Exists to Serve •Rule 4: IT is the keeper of
the Business. standards and best practices.
•Rule 2: IT is a means to • Rule 5: “IT” exists outside
an end. of your assets and office
•Rule 3: The best IT space.
systems and departments
are noticed the least. IT and the “Technology”
Business are and “IT” are no
Inextricably longer
Linked synonymous
Communication
Creativity is
is key when • Rule 8: Understand when and
paramount in
change is the how to introduce complexity.
the new IT
• Rule 6: Always strive to only constant • Rule 9: Competitive advantage
improve.
comes from the use of IT.
• Rule 7: Be open and honest
• Rule 10: Be willing to make
with relevant stakeholders.
tough decisions and follow a
budget.

12.  IT has always been touted as the “great enabler”
for business, and it serves to enable business
functions.
 IT is a connective tissue for your business and
should not be considered an island unto itself.
 IT-led projects fail when they are run with little
or no input from the business.
 High-performing IT departments use business
requirements as their compass.

13.  Companies don’t buy IT systems; they buy
successful outcomes.
 Users want IT systems to help them get their
jobs done quickly and efficiently.
 IT’s goal should be to help facilitate these
successful outcomes.
 Installing and maintaining outmoded tools, or
tools that do not meet business needs,
reinforces the perception of IT as a burden
and a cost center.

14.  IT is a business enabler.
 The best IT system, like
a good defenseman in
the NHL, is the one that
is noticed the least.
 You notice an IT system
when it isn’t doing its
job or producing a sub-
optimal outcome.

15.  “Shadow IT” is a reality for many organizations
as CMOs and business leaders take more
control of the IT budget. Shadow IT can be a
large problem when not executed well.
 IT has a core competency in process and does
not need to “build” everything.
 IT should embrace this change and work to
facilitate this change on its terms.
 Define best practices and guidelines for
“shadow” users to follow.

16.  IT is everywhere.
 Employees are bringing their own
mobile devices to work and
accessing work email on their
home computers.
 Users want the same computing
experience they have at home and
will take it upon themselves to get
what IT will not provide.
 More people are using tablets.
 The CIO/CTO of tomorrow needs
to be a service aggregator.

17.  Your IT department starts dying the
day it stops learning.
 IT departments can’t rely on last
year’s performance or
implementation.
 Encourage continuing education or,
where possible, experimentation for
new technologies.
 Constantly solicit feedback.
 Nobody cares “how it’s always been
done,” just that problems are solved.

18.  IT is not a “black box.”
 Too many problems in IT, and
business at large, are caused by
a lack of communication.
 Some IT decisions can seem
arbitrary if the thought process
is not communicated.
 Stakeholders need to
understand IT’s position on
processes, standards, approval
paths, and other issues.

19.  IT personnel want to minimize
complexity, while users just
want to get their work done
(hence the rise of “Shadow IT”).
 Complexity is not always evil,
and not all IT systems or
environments are equal.
 The best IT leaders understand
when and how to introduce
complexity in a smart,
manageable way.

20.  The IT playing field is
more level than ever
before.
 Competitive advantage is
no longer derived from
more financial resources.
 Companies that make the
best use of their IT, in a
way that meets their
needs, will win.

21.  High-performing IT organizations make the
needed trade-offs between today’s and
tomorrow’s requirements.
 Departments need to control expenses while still
understanding future needs.
 Budgets should include forward-looking
experiments and pilot projects, and not focus on
“feeding the beast.”

22.  Companies used to have a
Vice President of Electricity
when electricity was new.
 The position disappeared
as electricity became a
commodity.
 In the same vein, “IT” is
becoming pervasive.
 CIOs unwilling or unable to
adapt will suffer the same
fate as the VP of Electricity.

23.  We are all IT people now.
 The New Rules are a forward-looking roadmap
for the IT organization of tomorrow.
 Winning IT departments experiment at the
fringes while maintaining stability in the core.
 CIOs must be willing to run IT like a business.
 Users should feel empowered to drive IT forward,
and IT should feel empowered to drive user
needs.
 This is the biggest opportunity to re-imagine IT
and what it means to an organization since the
creation of the IT department. Seize it.

24. NJG and Company is uniquely positioned to
help your business deal with the new (and old)
challenges of the New IT. These include:
 IT Roadmap Analysis
 “Shadow IT” Strategy and Analysis
 Process Review and Re-Engineering
 Establishing an IT Center of Excellence
 Mobile Device/Tablet Strategy
 Facilitated Sessions for Goal Setting

27.  Founder, Managing Partner
NJG & Company LLC
 12 years of IT experience, 6
years in consulting
 Previous employers: Deloitte
Consulting, Citihub
 I understand that IT and the
business are symbiotic, and I
am passionate about the
future of IT within an
organization.

28.  Feel free to reach out with any questions,
comments, challenges, or consulting
inquiries.
 Email: njgiglia@gmail.com
 Phone: +1 516-993-4124