The growing divide between IT and business poses challenges for organizations striving to align technology with strategic goals, particularly with constant pressures to embrace new technologies. In this video, J-M Erlendson, Global Evangelist at Software AG, discusses the key challenges organizations are facing and how this can lead to chaos of operations. He shares what organizations need to do to address chaos of operations and flip the story to one of operational excellence. He says, “Operational chaos is not having that visibility and control and living in this wild west of business unit driven requirements, and business unit driven implementations.”

Technology evolution and communication gap between business and IT

• Erlendson discusses the evolution of Software AG’s technology over its 50-year history.
• Erlendson talks about the importance of communication in bridging the gap between business and IT. He discusses the role of evangelists in facilitating this communication.
• Software AG’s recent Reality Check 24 survey highlights the growing concern regarding the ability to effectively align business goals with technology. Erlendson describes some of the most pressing problem areas.

Tech complexity, talent shortages, and operational challenges in the digital age

• Erlendson talks about the ever-growing pressure for technology evolution and the effect external pressures like the pandemic have had on interconnected processes and systems in organizations.
• The pandemic has driven the need for new service delivery models due to hybrid work cultures. Erlendson discusses how organizations adopted new technologies and processes to accommodate these new service delivery models.
• There were also global supply chain challenges because of these changes, forcing companies to find different ways of moving goods and operate with less localized distribution centers.
• Erlendson talks about how external factors have accelerated the need for technological evolution, particularly with GenAI. Although it offers opportunities for innovation, there are integration challenges, talent demands, and AI risks.
• Skilled professionals who can bridge strategy with technology and operationalize new systems are needed to drive efficiency in organizations but talent shortage is a challenge.

Chaos of operations driven by legacy applications

• Erlendson talks about what chaos of operations is and how it affects organizations’ ability to operate efficiently.
• Although the ever-growing tech stack is often considered the backbone of organizations, it is often due to a lot of legacy applications that are required to be maintained.
• Erlendson explains the effect these legacy applications can have on organizations such as making digital transformation difficult and causing interruptions to business operations.
• Erlendson talks about the complexity of integrating applications within organizations and how this often leads to shadow IT, redundant processes, and increased risk.

Technology’s role in business, including AI, customer expectations, and compliance risks

• Erlendson talks about the complexity of integrating applications within organizations. He explains that this often leads to shadow IT, redundant processes, and increased risk
• Organizations need to prioritize sound business practices and regulatory compliance over introducing new technologies, focusing on integrating processes for improved operational control and agility.
• Erlendson believes that centralizing operational models, standardizing communication, and implementing process mining and control mechanisms for operational compliance can help tackle these problems.

Organizational chaos and process excellence

• Erlendson discusses how organizations can address operational chaos stressing it lies in creating a connected space that integrates systems, business, and IT, fostering standardization and centralization.
• Implementing practices like process and task mining, along with blueprinting, allows for better decision-making and operational control, ensuring processes are executed and monitored effectively for compliance.
• Tackling organizational chaos requires disciplined efforts and a focus on integration and standardization. Erlendson shares some of the key areas that need to be focused on.
• Erlendson explains that operational excellence helps drive faster product development, better customer service, and sustainable growth, providing a competitive edge.

Guest: J-M Erlendson (LinkedIn)
Company: Software AG (Twitter)
Show: Let’s Talk

This summary was written by Emily Nicholls.