This is a continuation of the last post, The Goal of IT where I tried to separate out how IT as a business function contributes to the goal of a company. Most of my experience is in Enterprise IT – that is IT is a function of a larger business enterprise, not specifically creating IT products or services for sale.
Enterprise IT is typically regarded as a cost center, not a revenue center. We are a support service to the larger business model, not dissimilar to facilities, legal, or human resources.
In the last post, I claim that IT exists to support the goals of the larger business enterprise, which are ultimately, to make money. The way IT accomplishes this is by delivering application capabilities, period. Working application capabilities that are used by business people, to increase their throughput, reduce their operating expense.
The business gets value from application capabilities in the same way a manufacturing plant gets value from machine tools, it uses them to increase the throughput of the manufacturing process. If a machine is not used, it does not increase throughput. The same is true for software – if it is not used, it cannot add value. Continue Reading