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Discover how EY's technology transformation team can help your business fully align technology to your overall purpose and business objectives.
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So, why is this happening? We observe a lot of enthusiasm for cloud technology – paired with a narrow view of the IT organization. In other words, in the rush to embrace the cloud, organizations often invest only a limited amount of effort to think where and how it will enhance their current and future business. They also neglect to adjust the IT operating model (ITOM) accordingly. In our experience, it’s vital to enhance the ITOM capabilities first so you can reap the full benefits of moving to the cloud. This process includes careful selection of where and how cloud technology will add value.
In most organizations, the ITOM – and IT organization – have evolved over many years, and at a time where technology is advancing rapidly. These established structures need to be examined and transformed to create an overall ITOM that is fit for the future and includes cloud components where it makes sense and adds value. Wherever you stand on your cloud journey, we propose a four-dimensional approach to further your ambitions by focusing on the ITOM:
- Service strategy
- Service design and build/obtain
- Service management and IT operations
- Service costs and profitability
1. Service strategy
This is where you adjust the underlying IT structure for cloud component integration.
While IT organizations acknowledge the need to redefine existing structures in their ITOM, many still take a functional, tech-led view. This is why so many cloud investments end up not delivering the anticipated value. Instead, a service-oriented approach should be adopted to increase alignment with business and enable the implementation of value streams.
One key action to achieve this is the definition of end-to-end services. Then, the organization should realign accountability for each service – and its team, budget and governance. This also involves nominating a service owner with full responsible for the delivery and further development of the service.
To support this process, organizations should also adopt agile, by setting priorities based on digital business demand, underlying technology and vendor dependency. Leveraging the new-found service orientation can help shape the tribes.
2. Service design and build/obtain
This is where you enhance the service development lifecycle for cloud.
Considering the established market offering for new technology-related services, IT organizations should reassess their capabilities and decide on further outsourcing potential. This is part of the wider decision-making process on sourcing where services will shift from internal to shared (IaaS, PaaS, etc.) or external services (SaaS, BPaaS, etc.). Hereby the integration and management of cloud components is going to be decisive.