Whenever I tell someone about the ideas behind The Quantum Age of IT, the first question I tend to get is, “Do I really have to choose between being a strategic sourcer or strategic innovator?”
It seems that the general ideas around the changing IT business model or the five traits or even the five skills are all generally accepted. But the idea that every IT leader must choose to lead their organization to become either a strategic sourcer or strategic innovator is tougher to swallow.
IT professional and executives want to embrace the “new” way of IT, but at the same time they want everything to stay the same. Unfortunately, that just doesn’t work. The fundamental idea is that every IT organization must now choose between being the IT equivalent of either Wal-Mart of Nordstrom.
IT’S NOT ABOUT RIGHT OR WRONG
Neither is right or wrong. One is not better than the other. They both offer significant value to their customers. But they are also vastly different business models. You simply cannot try to live in both worlds and hope to succeed in either of them.
In fact, this has been the core of the problem that has been building within IT organizations for years. We have tried to be both Wal-Mart and Nordstroms at the same time – and we are failing at both in most regards.
It is common sense to see why. How can you simultaneously be the “low-cost provider” and give high-touch service? How can you simultaneously be ruthlessly standardized to minimize maintenance costs and create an environment which fosters rapid innovation?
BUT THEY REQUIRE DIFFERENT APPROACHES
There will be some that say you can, but the reality is that these two business models require fundamentally different orientations to truly succeed. Yes, they require some common foundational elements, but how you organize, execute and manage your resources will need to be optimized toward your selected business model. And it requires a level of intimacy with your customer to fully understand their needs and which model serves them.
Making this choice means making significant change within your environment. But it is also liberating. It will give you an opportunity to create a powerful sense of focus and mission.
There is no avoiding that you must choose. But I’m pretty sure that you’ll be glad you did.
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