Key factors for successful digital transformation include a strategic plan, effective change management, and embedding digital cultural values.
However, universal criteria for assessing the maturity of a company’s digital culture do not yet exist. Some experts suggest analyzing innovation activity, while others view transformation as a multi-stage project. Both approaches are valid, but they are difficult to apply for rapid assessment in the here and now.
The Role of IT in Company Development
IT structures are increasingly becoming the driver of a company’s technological development, not just a service department. Today, many organizations prioritize digital transformation by automating business processes, implementing data-driven management, and improving customer experience. The depth of digital transformation can be most clearly assessed by the IT function: it is important to understand where innovations originate and the extent to which the business supports their implementation.
How Digitalization is Changing IT Departments
Opinions on the role of the IT function vary. It is often perceived as a technical support department, responsible only for the smooth operation of systems. A more modern approach assumes that the IT structure itself shapes the company’s technological development and launches innovative projects. Unfortunately, most clients’ top managers still adhere to the first view.
The organizational structure of the IT department is a convenient indicator of the progress of digital transformation. At the initial stage, it is a standard service unit with unitary management. Even during project implementation, the allocation of project managers or teams is temporary: after the project’s completion, the positions are eliminated and the teams are disbanded.
The appointment of managers responsible for specific business processes reflects the changing functions of the IT service. It ceases to be solely a service provider and becomes a driver of business transformation. IT departments often initiate digitalization initiatives, as they are better able to formalize technological challenges and organize their implementation. Within these departments, product teams are being created, bringing together specialists in specific processes with a deep understanding of business areas—a sign of the transition to a product model and the development of specialized practices.
From Expenses to Investments
The development of IT departments is following a historical cycle. Previously, companies that used third-party development tools formed internal teams to create automated systems. Today, the role of corporate development is changing again: it is no longer about individual systems, but about comprehensive digital platforms.
Previously, business priorities included centralizing IT, creating unified support centers, and reducing costs. This approach was justified, as IT was viewed solely as a service function.
The changing role of IT is leading to a reconsideration of management’s view on investments. Department specialization requires expanding staff and attracting expensive experts, but such investments pay off with the creation of effective and high-quality products. At the same time, companies are acting pragmatically: expanding in-house IT services makes sense if tasks are recurring. Outsourcing continues to be used for one-off projects, often delivering faster and more cost-effective solutions, including the use of private, hybrid, and public cloud services.
Digital Transformation as a Comprehensive Change
Digital transformation is not only the implementation of new technologies but also a comprehensive transformation of products and services, organizational structure, partner and customer engagement strategies, and corporate culture. Success depends on a close partnership between IT and the digital transformation department.
All companies, regardless of industry or stage of transformation, are seeing common trends: business and IT are converging, accountability for results is growing, and ROI analysis is becoming more robust. For business owners and senior managers wishing to assess the depth of digital transformation, it is advisable to begin by analyzing changes in their company’s IT department.