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IT From Common Resource to Strategic Partner

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This blog post is about IT in large organisations, including public organisations like councils and businesses where new Tech competitors are changing the environment of business. The environment is changing, or more accurately, being changed by the strategies of competitors.

Organisations are looking for a digital strategy to combat this threat, moving digital to the heart of what they do. IT for it’s part is keen to become a Strategic Partner to the business. So what is stopping it?

Where did IT departments come from?

It’s worth looking at how IT departments may have been created. They traditionally exist as a cost on the balance sheet, providing common resource to other areas of the business, often underpinning other parts that are necessary, but may not directly exchange value with the environment, like accounting, marketing or HR. The may also run internal and external websites, but they are unlikely to be the core value propositions.

If not managed,  common resources can suffer from the “tragedy of the commons”. The popular example is common grazing land is so overburdened by people wanting to graze their animals that loses it’s initial value. People are assumed to want to maximise the number of animals on the common land.

Common IT Resources

Many people in IT departments will recognise this, with many unrelated customers in the business wanting their work to be prioritised by the limited IT resource. Like in the tragedy they want to get value from the resource. There is now no such thing as an IT project – they are business projects central to strategy. But with a common IT resource each may be another cow on the  metaphorical field.

The big issue is ‘Who would strategically partner with an unmanaged commons?”. It’s a very risky proposition.

From an Unmanaged Commons to Strategic Partner

Managed commons can and do exist. Elinor Ostrom studied working, managed commons, and found that there are 8 organising principals common to functional commons. Applying these to IT could provide the step towards being seen as a potential Strategic Partner.

Eleonor’s rules applied to IT may look like

There are many other areas of organisations, or entire organisations that are Common Pool Resources. Strategically some may aim to be well managed commons, others may need to use this framework to be seen as a potential strategic partner by other areas of the organisation or environment.

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