As companies seek to drive real business value through digital transformation, now is the time for IT organizations to change their operating model to increase speed of delivery, reduce costs and to target business priorities, according to Barry Brunsman, principal in KPMG's CIO advisory practice. Digital transformation, he explains, requires a connected enterprise based on the agile delivery of new capabilities that allow teams to move quickly and win in the marketplace, as well as an integrated front, middle and back office.\n\u201cThis requires a new way of delivering IT,\u201d says Brunsman. \u201cThe traditional form of technology-enabled business change, including years of implementation, doesn\u2019t work in this environment.\u201d\nHowever, IT still has to consider how to provide solutions at scale, which is a complicated challenge, he adds. \u201cOn the one hand, you can invest in a couple of areas such as analytics or automation and build a backlog of opportunities to leverage against, with the idea that you will learn quickly from mistakes and continue to improve,\u201d he says. \u201cThere is some truth to that, but that model won\u2019t scale, it\u2019s a small initiative.\u201d\nThe IT organization needs to consider a model that allows them to both take advantage of quick wins as well as build institutional scale around new capabilities. \u201cWe really need the purposeful selection of opportunities as well as the ability to manage the delivery of those opportunities,\u201d Brunsman says.\nA new next-generation IT operating model, that breaks down technology silos and increases the use of agile methodologies, needs to be designed together with profound changes in capabilities. The bottom line is, IT needs to fundamentally change in order to be effective participants in digital business transformation.\n\u201cThis used to be too big a bite that involved gigantic organizational change,\u201d Brunsman says. \u201cNow, IT needs to look at their capabilities and prioritize relative to what the business needs.\u201d The idea of business and technology being distinct from one another is not the case anymore, he adds. \u201cIn general, business is often two or three steps ahead of IT capabilities.\u201d\nOne classic example, he explains, is when the business announces data analytics as a corporate strategy item, but IT hasn\u2019t been involved in the discussion. \u201cThe business has already started, and IT is getting left behind,\u201d he says. A better strategy is to partner with the business: This requires that IT identify what is needed to build the analytics capability quickly and get to scale. \u201cIf IT can be that partner that helps the business navigate risk and move quickly, that brings them to the table in other areas as well,\u201d he says.\nThis is an important mindset shift for IT, which in the past has put a negative spin on this kind of \u201cshadow IT.\u201d\u00a0\n\u201cIT has to put itself in a place to help enable the speed of change the business needs and have the conversation with business partners,\u201d he says. \u201cIt has to about \u2018help us help you.\u2019 \u201d\nThe reality, Brunsman adds, is that business teams doing technology development \u201cdon\u2019t know what they don\u2019t know, which for IT, is a chance for a win-win.\u201d\nDoes your IT operating model enable your business? To learn more about how to develop an effective IT strategy that works to achieve your business goals, click here.