IT Strategy vs
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for the Digital Era
Digital Migration Partners  suggest that digital transformation is more of a management challenge than a technology one. They argue that the right way to approach it starts by assessing how technology impacts the organizational structure and the company’s value chain.
Companies tend to inherit organizational structures that have been successful in tackling past challenges. In large organizations, IT management is often ‘system-oriented. Organizational units are delimited by the boundaries of software applications within the firm’s IT ecosystems. That organizational structure is characterized by functional and geographic silos that do not share information openly, as presented in the Figure, thereby leading to sub-optimal performance. That gives rise to fragmentation of IT management, with every single application having potentially different or even conflicting interests. Such organizations might not suit digital businesses in which efficiency is reached with integrated management at the product level .
No more space for Silos
According to McConnell , politics might prevent digital transformations due to:
Digital transformation initiatives that fail due to lack of integration
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 Bhattacherjee, A. et al., 2007. The Differential Performance Effects of Healthcare Information Technology Adoption. Information Systems Management, Volume 24, p. 5–14.
 Scarbrough, H., 1998. Linking strategy and IT-based innovation: the importance of the ‘management of expertise’. In: Information technology and organizational transformation. New York: John Wiley & Sons, Inc. , pp. 19-36.
 Digital Migration Partners, 2015. Organizational Design As A Competitive Advantage In The Digital Era, Madrid: Digital Migration Partners S.L..
 Raab, M. & Griffin-Cryan, B., 2011. Digital Transformation of Supply Chains, s.l.: Capgemini Consulting.
 Kane, G. et al., 2016. Aligning the organization for its digital future. MIT Sloan Management Review
 McConnell, J., 2015. The Company Cultures That Help (or Hinder) Digital Transformation., HBR
 Rivkin, J. & Keyworth, B., 2015. 2016 IDC FutureScape CIO Agenda Prediction 4: 70% Failure Rate of Siloed Digital Transformation Initiatives in 2018, Framingham: IDC Research, Inc..
 Wurster, et al., 2009, Strategic, Political, and Cultural Aspects of IT Implementation: Improving the Efficacy of an IT System in a Large Hospitals,
Journal of Healthcare Management: May 2009 – Volume 54 – Issue 3 – p 191-206
 Scarborough Linking strategy and IT-based innovation: the importance of the ‘management of expertise’, Information technology and organizational transformation: innovation for the 21st century organizationMarch 1998 Pages 19–36
 Wenger & Snyder, 2000 Communities of Practice: The Organizational Frontier, HBR
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