Many organizations have struggled to achieve their goals in 2023 due to ongoing economic headwinds. Macroeconomic risks such as inflation and energy instability disrupt normal operations and erode efficiency.
As infrastructure and operations (I&O) investments are increasingly scrutinized in the face of cost-cutting initiatives, I&O leaders must make difficult decisions and weigh their options. Even as the dynamics of macroeconomic activity become increasingly volatile, I&O organizations cannot stop supporting critical digital business initiatives.
While I&O leaders cannot control economic headwinds, there are actions they can take to mitigate the effects. I&O leaders can take the following actions to navigate economic turbulence and create a path for a successful, post-headwinds future.
1. Get amped about analytics
Expectations have been renewed that analytics technologies can substantially improve I&O organizational outcomes. This is due to advancements in artificial intelligence (AI) across deep learning techniques and large language model technology.
It is important for I&O leaders to avoid the hype and resist the temptation to rely on eye-catching claims found in vendor marketing materials. Substantial improvements are achievable, but how quickly this can be achieved will vary. Leaders should initiate analytics efforts by working with business stakeholders to facilitate collaboration that could result in identifying and targeting the right number of applications in a timely fashion.
In addition, leaders need to measure the value of analytics efforts in the context of decision-making capabilities, leading to improvements in service delivery that can be reflected in desired business-oriented outcomes, such as improving productivity and increasing revenue.
2. Invest in infrastructure modernization
I&O infrastructure modernization objectives and goals can change quickly, and often without warning, as business priorities shift and new technologies emerge.
To facilitate their modernization activities, I&O leaders should organize a cross-functional team, which includes key business personnel to identify the key change drivers that can direct the organization’s infrastructure modernization efforts. Leaders should also manage change by coordinating the business need for change versus the fitness of the I&O organization. They should also empower teams to develop the skills required to build and change because best opportunities for modernization exist at the intersection of the impact of business dynamics and the ability of the organization to create and sustain transformation.
3. Consolidate
I&O leaders should focus on creating the most efficient operating environment possible. This means that an aggressive posture is needed to root out duplicative, overlapping and nonessential elements within the I&O supply chain that do not add value. I&O leaders can facilitate this activity by identifying the relevant I&O facilities, servers, products and processes in use to form a baseline and evaluate their performance and usefulness.
Additionally, I&O leaders should evaluate how their I&O spending and costs compare to those within their vertical industry. They should include estimations of the performance of leading cloud-based firms that may have wherewithal to potentially enter the organization’s market, design a plan to engage all affected stakeholders, provide regular status updates, and communicate the planned changes and their impacts as stages of the cost management plan.
4. Address complexity
A key effort found in many successful I&O organizations is a determined effort toward standardization in commodity technologies, such as smartphones and wearables, while allowing for useful variations that add value.
Any complexity in a commodity I&O element should be targeted for elimination. Standardization and simplification act to reduce the number of moving parts and organize them into layers of abstraction that are easier to manage.
To reduce complexity via standardization and simplification, I&O leaders should work with key stakeholders, including those outside of I&O, to rationalize I&O technology and ultimately drive toward a minimal set of repeatable designs. Leaders should also be transparent in the removal of any perceived redundant applications or infrastructure, create clear simplification metrics that are reflective of the initiative and relate to company goals, and govern simplification initiatives tightly while avoiding short-term quick fixes that close off important paths for the future.
5. Optimize the I&O talent pool
I&O leaders everywhere are struggling to find and retain critical talent. The modern I&O work environment is transforming due to factors such as society and culture, the needs of employees and market competition.
The current economic headwinds have added burdens on I&O teams, causing early and frequent staff turnover. To increase recruitment and address retention challenges, I&O leaders must understand and react to the scope and speed of change necessary for today’s environment.
I&O leaders should create an environment that is attractive to prospects and employees by devising a people-first employment value proposition strategy that emphasizes work, organization and culture. They should also collaborate with peers outside of I&O to incorporate policies and best practices from throughout the organization into a departmental culture that appeals to candidates and employees.
The takeaway
Even as the dynamics of macroeconomic activity become increasingly volatile, I&O leaders need to accelerate digital progress by investing in analytics and automation technology as part of their efforts to enable agility.
I&O leaders must be flexible and consider a variety of options in response to macroeconomic dynamics. Finally, I&O leaders must focus on the employee value proposition, measuring outcomes and rethinking existing practices as results dictate.
Cameron Haight is a VP Analyst at Gartner, Inc. within their Infrastructure & Operations (I&O) for IT Leaders organization. His primary focus is on optimizing IT operations automation strategy and design with an emphasis on human factors.
Industry Voices are opinion columns written by outside contributors — often industry experts or analysts — who are invited to the conversation by Silverlinings' editors. They do not represent the opinions of Silverlinings. Read all of our Industry Voices here.