Rethinking the IT Function: The Future of Enterprise Applications

by Ram Reddy

Why rethink the IT function? There have been many articles in recent popular technology and business journals questioning the need for the chief information officer (CIO) role and internal corporate IT departments. In many companies, there has even been talk of disbanding the IT organization and outsourcing maintenance and development to external firms. There are multiple reasons for the current disillusionment with the IT function. Look at detailed capital and personnel expenses for the past few years within your firm. You will find that a significant chunk of money was spent on IT. These expenses were incurred on Y2K, packaged application software implementation, and many failed e-business efforts. Non-IT executives looking at a typical IT organizational structure are unable to decipher how technical functions such as "database administrating group" or "network operations group" support their function. For most non-IT executives, IT expenses are one giant black hole that is beyond their understanding.

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Rethinking the IT Function: The Future of Enterprise Applications June 2002