Friday, December 31, 2021

The three strands of Information Technology

How are IT departments structured? I've seen a variety of ways to do this. It depends on the individual business, but over the years I've come up with a way to think about this.

When thinking about Information Technology (IT), it naturally splits into 3 separate strands:

IT for the business

This is the provision of facilities for HR, Finance, Sales, and the like; basic facilities for the organisation to operate as a business

IT for the employee

This is the provision of systems and tools for employees to be able to work at all; laptops/desktops/mobile devices, and communications systems such as telephony and email, together with a way for staff to store and collaborate on documents

IT for the customer

This is the provision of services that your customers use, whether that's a product you sell in its own right, or as a mechanism to sell other products

The relative importance of these 3 strands depends on the nature of the business, of course. And very small organisations might not even have all 3 strands in any meaningful sense.

Structurally, there are two senior roles that an organisation might have, the CIO and CTO.  And the way things would naturally be laid out is that the CIO looks after IT for the business and IT for the employee, while the CTO gets IT for the customer.

Splitting things this way works because the characteristics of the strands are quite different. The responsibilities of the CIO are inward-facing, those of the CTO are outward-facing. The work of the CIO is about managing standardised commodities, while the CTO's role is to provide differentiation. Polar opposites, in a way.

There's a third role, that of the CISO, responsible for information security. This is slightly different in that it cuts across all 3 strands. As such, if you have both a CIO and a CTO, it isn't entirely obvious which of the two, if either, should take on the CISO role.

Given the different nature of these 3 strands, where does the IT department (loosely defined as those people whose job is IT) fit? Should you even have one? The job requirements for the 3 strands are sufficiently different that having different IT teams for each strand would seem to make an awful lot of sense, rather than a central IT department. And the IT team for each strand reports to the CIO or CTO as appropriate. In particular, having a product developed in the CTO part of the organisation and then thrown over the wall to be run by an operations team in the CIO organisation is one of the organisational antipatterns that never made any sense and was a major driver for DevOps.

Thus, when structuring the delivery of IT in an organisation, considering the divergent needs of the 3 different IT strands ought to be taken into account. Worst case is a single department that standardises on the same solution to deliver all 3 strands - standardisation is a common refrain of management, but what it really means here is that at least 2 strands (if not all 3) are delivered in a sub-standard way, often in a way that's actually completely unsuitable.

There is a central IT function that does cut across all 3 strands, in the same way that a CISO does at the management level. Which is a compliance function or security office. But for most other functions, you're really looking at providing distinct deliveries for each strand.

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