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Splitting the enterprise IT we know

The adoption of the Internet Of Things (IoT) is growing and its growth is synonymous with the growth of Cloud. As per predictions from IDC:

IoT and the Cloud: Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT "Data Blending".

This means that any organization that wanted to transform themselves using IoT has to automatically embrace the cloud too, especially the public cloud.

This brings in an important aspect with respect to the CIO mindset that cloud is no longer an optional component to be evaluated in their strategic roadmap but a component that's essential for the very survival of the organizations they support.

Splitting the Enterprise IT We Know
The above thought process leads to the fact that future enterprise IT has to be viewed as three distinct units all tied together by a service broker in the form of a CIO.

For explaining this component let's look into the typical IT of a manufacturing enterprise. The following diagram depicts the same and the business processes that it supports. Here we see that IT builds and supports every other business process in a traditional way.

In order for CIOs to effectively transform them toward a new IT enabled by IoT and cloud, the IT has to be viewed as three distinct units.

IOT Realm
These constitute those areas of IT whose underlying business processes will significantly be transformed using the Internet Of Things, where by much of the manual intervention will be replaced by the smart objects and machine-to-machine communications. These business processes will form part of the core of the enterprises, but they will have to utilize cloud for their scalability and responsiveness. As evident IT applications covering business processes such as plant floor, supply chain and logistics and product development are most appropriate to move under this realm.

Hybrid Delivery Realm
As the CIOs need to innovate and concentrate more on IoT, which means most of the traditional components of IT have to be moved to a SaaS delivery model and integrated with the rest of the components using a Hybrid Delivery mechanism. This also includes new business models and channels like mobility and social. But yet most of the IT operations under this realm will not be distinct across enterprises and can benefit from the innovations in SaaS and integration. For example, IT applications covering business processes like sales, purchasing and human resources come under this category.

Service Broker Realm
This what remains of the traditional IT as of today. But it still holds the important role of a Service Broker where the innovations enabled by IoT and the flexibility enabled by Hybrid Delivery Model are all tied together.

This realm will also hold in-house control of some very strategic applications where the compliance and other needs prevent the organization from changing the traditional delivery model. For example, IT applications covering business processes like finance, product planning may come under this category.

This kind of a splitting is possible in every other enterprise be it a healthcare, retail or financial services enterprise, but the fact that the new IT will look lot different from current IT due to the convergence of IoT and cloud.

About Srinivasan Sundara Rajan
Highly passionate about utilizing Digital Technologies to enable next generation enterprise. Believes in enterprise transformation through the Natives (Cloud Native & Mobile Native).

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