Starting up an IT Department Today vs 20 Years Ago

Are IT Departments Still Relevant To Organizations Today and What changed Two Decades ago?

The role of IT departments has significantly evolved over the past 20 years. Back then, IT departments were primarily responsible for managing an organization’s hardware, software, and network infrastructure. This included installing software, maintaining hardware, troubleshooting issues, and ensuring data backups were performed regularly. However, with the advent of cloud computing and the proliferation of mobile devices, the role of IT departments has expanded considerably. Today, IT departments are responsible for developing and implementing an organization’s technology strategy, ensuring that technology aligns with business objectives, and providing support to employees.

• Is an IT Department even Necessary Today?

• What are big changes to an IT Department Today?

• What should startups and growing companies focus on when looking at IT today?

• What issues will companies run into if they neglect IT?

• What challenges will organizations that primarily use subscription software without IT face?

• Fractional CFO Helping Companies Create the Right IT Department

Is an IT Department even Necessary Today?

Some might argue that an IT department is not necessary today, given the vast array of cloud-based tools and software that organizations can use without any specialized expertise. However, even though many aspects of IT have become more accessible and easier to use, the role of an IT department remains critical for organizations. Here are some reasons why:

Security: Cybersecurity threats are a major concern for organizations of all sizes, and IT departments are responsible for protecting their company’s data and technology infrastructure from security threats. This includes keeping up with the latest security threats and ensuring that systems are updated and patched regularly.

Infrastructure: IT departments are responsible for managing an organization’s technology infrastructure, including hardware, software, and networking. This includes maintaining servers, upgrading software, and ensuring that networks are running smoothly.

Strategic planning: IT departments play a critical role in developing an organization’s technology strategy, ensuring that technology aligns with business objectives, and providing guidance on technology investments.

Support: IT departments are responsible for providing support to employees, ensuring that technology-related issues are resolved quickly and efficiently.

What are big changes to an IT Department Today?

The role of IT departments has evolved considerably over the past few years, and there are several big changes to IT departments that organizations should be aware of.

Cloud computing: One of the most significant changes to IT departments is the adoption of cloud computing. With the cloud, organizations can access computing resources on-demand, without having to invest in expensive hardware or infrastructure. This has made it easier for organizations to scale their technology infrastructure, and it has also enabled employees to work from anywhere, using any device.

Artificial intelligence: Artificial intelligence (AI) is another major trend that is changing the role of IT departments. AI technologies can automate many routine IT tasks, such as software updates, data backups, and network monitoring. This frees up IT staff to focus on more strategic tasks, such as developing technology strategy and supporting employees.

Mobile computing: The proliferation of mobile devices has also changed the role of IT departments. Employees now expect to be able to access work-related applications and data from their smartphones and tablets, and IT departments must ensure that these devices are secure and that employees can work seamlessly across different devices.

Data analytics: The explosion of data has created new challenges for IT departments, but it has also created new opportunities. Data analytics technologies enable organizations to gain insights from their data, identify trends, and make better-informed business decisions. IT departments must be proficient in data analytics technologies and be able to support data-driven decision-making throughout the organization.

What should startups and growing companies focus on when looking at IT today?

Startups and growing companies have unique technology needs, and there are several key areas that they should focus on when looking at IT:

Scalability: Startups and growing companies need technology solutions that can scale quickly and easily as the company grows. Cloud-based solutions are often the best choice for startups, as they can be easily scaled up or down as needed.

Security: Startups and growing companies are often targeted by cybercriminals, so it is essential to have strong security measures in place. IT departments should prioritize cybersecurity
Wecontinueby implementing measures such as firewalls, antivirus software, and regular security audits.

Collaboration tools: As startups and growing companies often have remote employees or teams in different locations, collaboration tools are essential for keeping everyone connected and working together efficiently. IT departments should prioritize tools such as video conferencing, instant messaging, and project management software to facilitate collaboration.

Data management: As companies grow, they generate more and more data, and it becomes increasingly challenging to manage and analyze that data effectively. IT departments should prioritize implementing data management and analytics solutions that can help the company gain insights from their data and make data-driven decisions.

What issues will companies run into if they neglect IT?

Companies that neglect IT runs into the risk of facing several issues, including:

Security breaches: Neglecting IT security can leave companies vulnerable to cyber-attacks and data breaches, which can result in financial losses, reputational damage, and legal consequences.

Operational inefficiencies: Neglecting IT infrastructure can result in operational inefficiencies, such as slow network speeds, outdated software, and frequent downtime, which can impact employee productivity and customer satisfaction.

Inability to scale: Neglecting IT can also result in companies being unable to scale their technology infrastructure quickly and efficiently, which can limit their ability to grow and compete in the market.

What challenges will organizations  without an IT team encounter?

Organizations that primarily use subscription software without an IT department can face several challenges, including:

Security: Many subscription software solutions rely on cloud-based infrastructure, which can leave companies vulnerable to security breaches if the software is not configured and managed correctly. Without an IT department to oversee the security of the software, companies may be more susceptible to cyber-attacks and data breaches.

Integration: Subscription software solutions may not always integrate seamlessly with other systems, which can result in data silos and operational inefficiencies. Without an IT department to manage integration, companies may struggle to ensure that their software solutions work together efficiently.

Data management: Subscription software solutions generate vast amounts of data, and without an IT department to manage that data, companies may struggle to gain insights and make data-driven decisions.

Capital Efficiency: Technology subscription and hosting costs only goes up,  without an IT department to review existing investments and optimize them for utilization and cost efficiency, a company can find itself at the mercy of upselling. That means an organization is either over-investing or misallocating its resources because it’s needs or the underlying technologies have changed.

Fractional CFO Helping Companies Create the Right IT Department

If your company is looking to establish an IT department, you may want to consider hiring a Fractional CIO. A Fractional CIO is a part-time or contract IT executive who can help your company develop and implement its technology strategy, oversee IT operations, and provide guidance on technology investments. Here are some reasons why you should consider hiring a Fractional CIO:

Expertise: A Fractional CIO brings a wealth of expertise and experience to your organization, enabling you to benefit from the knowledge of an experienced IT executive without the cost of a full-time hire.

Cost-effective: Hiring a Fractional CIO can be more cost-effective than hiring a full-time CIO, as you only pay for the services you need.

Flexible: A Fractional CIO can work on a part-time or contract basis, giving you the flexibility to scale your IT department up or down as needed.

Strategic focus: A Fractional CIO can help your organization develop and implement a technology strategy that aligns with your business objectives, enabling you to leverage technology to drive growth and achieve your goals.

In conclusion, the role of IT departments has evolved significantly over the past 20 years, and it is now more critical than ever for organizations to prioritize IT. Startups and growing companies should focus on scalability, security, collaboration tools, and data management when looking at IT, while organizations that primarily use subscription software should be aware of the challenges they may face. Hiring a Fractional CIO can be a cost-effective way to establish an IT department and benefit from.