Bridging the gap between the Technology and Business aspects of an organization to attain its goals
Susan Elmesslamy
COO | Technology Leader | Global Operations & Process | Service Management | Customer Success | Relationship Builder | Risk Manager | Saas -Startups | Money 20/20 Rise up Alumna
Authors: Susan Elmesslamy , Anthos Yannakou
?16th of October 2023
Contents
?Table of Figures
?Table of Tables
1. Executive summary and abstract
The research identified a significant challenge within technology-driven organizations – the misalignment between their business and technology aspects. This misalignment results in missed opportunities and hinders the ability to achieve strategic objectives (Smith, 2018; Porter, 1985). Existing literature and scholarly support underlined the pressing need to develop tools and processes for fostering effective communication between these two distinct groups. The completed research activities are summarized in figure 1 below:
The research aims to comprehensively understand and bridge the gap between technology and business within organizations. The literature review revealed that several organizations have employed various approaches to bridge this gap, including strategic leadership
Technological solutions to address the gap included the adoption of Agile methodologies
The research concludes that the proposed solution necessitates a combination of both technological and non-technological elements, including leadership with a deep understanding of technology, governance controls, and a dedicated process enforcer.
A conducted gap analysis
The research combined qualitative and quantitative methods, involving surveys and interviews with industry professionals to address the research problem. The research solution presented a multifaceted approach encompassing the appointment of a tech-savvy COO, Agile methodologies, quality enhancement, governance risk and controls, and a processes enforcer.
Quantitative findings revealed that most solutions were initiated by leaders, and 90% of respondents had attempted solutions. However, only 5% observed the persistence of these solutions in their organizations. Qualitative insights highlighted the importance of a dedicated processes enforcer to sustain implemented solutions.
This report concludes with four sequential recommendations to effectively address the limitations encountered throughout the research process.
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?2. Problem statement
The research problem, as identified and subsequently validated through the literature review, revolves around a critical challenge encountered by technology-driven companies. Within these organizations, the interplay between strategy and innovation holds immense significance. However, a persistent disconnect exists, where the business aspect of the organization often fails to fully grasp the untapped potential that technology can provide. This gap inevitably leads to missed opportunities. Simultaneously, the technology side of the organization frequently lacks the essential business acumen necessary to align with and effectively support the overarching strategic objectives.
This dual challenge highlights the pressing need for the development and implementation of tools and processes aimed at fostering effective communication between these two distinct groups and, in turn, strengthening the connection between technology planning and strategic management. This research problem has been underscored and supported by notable scholars in the field (Smith, 2018; Teece, 2010).
To address the problem, this research endeavored to answer the following key questions:
a.?????? What solutions have been previously attempted by other organizations to bridge this technology-business gap, and what was the impact of these solutions?
b.?????? What technological solutions or methods hold the potential to contribute to the resolution of this challenge?
c.??????? Does the proposed solution necessitate a combination of both technological and non-technological elements?
3. Background and literature review
3.1. Project aim
The central objective of this research is to comprehensively understand and address the prevalent gap that often exists between the technology and business aspects within organizations. This gap is a critical challenge faced by many companies, which can result in missed opportunities and hinder the organization's ability to achieve its strategic objectives, particularly in terms of fulfilling customer needs (Steinau et al., 2018).
To tackle this complex issue, the research is proposing a solution that incorporates a holistic approach, encompassing both technological and non-technological methodologies. The overarching aim is to bridge this gap effectively and establish a more cohesive and aligned framework within the organization. Such alignment is essential for the organization to realize its strategic objectives and enhance its ability to meet the dynamic demands of its customers.
3.2. Literature review
This section provides an overview of the literature associated with each of the research questions.
Research question 1: What solutions have been previously attempted by other organizations to bridge this technology-business gap, and what was the impact of these solutions?
Serves as the foundational inquiry that aimed to unearth the strategies employed by various organizations in their quest to bridge the technology-business gap and to evaluate the outcomes of these endeavours. The investigation revealed that numerous organizations have proactively sought solutions to this challenge, leading to the identification of several commonly adopted approaches. Various organizations have explored solutions to bridge the technology-business gap. Some of the commonly attempted solutions include:
Strategic Leadership: Several organizations have appointed leaders with a deep understanding of both technology and business. These leaders can bridge the gap by translating technical innovations into strategic business decisions. The impact of this approach is seen in improved alignment between technology and business goals (Henderson & Lee, 2020).
Cross-Functional Teams: Creating cross-functional teams composed of individuals from both technology and business backgrounds has been a successful strategy. These teams work together to develop products and solutions, ensuring that technical aspects align with business objectives. The impact is increased collaboration and faster time-to-market (Mendelson & Pillai, 2019).
Organizational Culture: Encouraging a culture of innovation and openness to technological advancements has proven effective. When employees are encouraged to explore new technologies and ideas, it leads to increased innovation and better integration between technology and business (Schein, 2016).
Training and Development: Providing technology training to non-technical employees and business training to technical employees helps them better understand each other's roles and perspectives. The impact is improved communication and shared understanding (Davis, 2020).
Technology Integration Platforms: Leveraging technology integration platforms or Enterprise Service Bus (ESB) solutions can facilitate the seamless flow of information between technology and business systems. This ensures real-time data exchange and decision-making (Boyes, 2017).
The impact of these solutions varies depending on the organization's context and the extent of implementation. Successful organizations report improved innovation, faster time-to-market, better alignment of technology with business goals, and overall enhanced competitiveness.
Research question 2: What technological solutions or methods hold the potential to contribute to the resolution of this challenge?
Investigating the technological methodologies that offer potential solutions to address the longstanding issue of bridging the gap between the business and technology facets of organizations. This issue, as highlighted by prior studies (Steinau et al., 2018; Smith, 2018), poses a significant challenge to companies seeking to remain competitive and responsive to customer needs.
The research primarily focuses on incorporating technological methods as integral components of a proposed framework. Specifically, it emphasizes the adoption of Agile methodologies, in tandem with the implementation of SAFe (Scaled Agile Framework) team structures. These methodologies are well-documented to enhance an organization's agility, collaboration, and adaptability, thereby equipping it to effectively navigate dynamic technological and business challenges (Schwaber & Sutherland, 2017).
Additionally, this study explores the potential of the House of Quality, a four-phase Quality Function Deployment (QFD) approach (Akao & Mazur, 2003). The application of the House of Quality is contingent upon the degree of customer involvement in the product development process and the nature of the organization's relationship with its customer base. This methodology plays a pivotal role in translating customer requirements into specific design and operational parameters, thereby ensuring that the final product aligns seamlessly with customer expectations and overarching strategic objectives.
Research question 3: Does the proposed solution necessitate a combination of both technological and non-technological elements?
Affirms that the proposed solution necessitates a dual-element approach, incorporating both technological and non-technological components. The utilization of Agile methodologies and the House of Quality, specifically a four-phase Quality Function Deployment (QFD) approach, represents the technological dimensions. These technological aspects should be complemented by a leadership structure well-versed in technology, such as a Chief Operating Officer (COO) with a deep understanding of technology. Additionally, the inclusion of governance controls is imperative to ensure continuity and maintain high-quality standards.
Moreover, appointing a dedicated process enforcer is paramount. This role can be effectively filled by a Business Analyst (BA) or a specialized Human Resources (HR) function. Their primary responsibility revolves around ensuring adherence to defined processes, streamlining operations, and aligning technology initiatives with the overarching business objectives (Sommerville, 2016; Weygandt et al., 2015).
3.3. Gap analysis
In the course of the research, all the questions raised were successfully addressed. Nonetheless, it is important to acknowledge that certain limitations were encountered, which will be thoroughly examined and discussed in the Methodology section.
The gap analysis in table 1 below outlines the identified current state and the desired state in addition to the gaps between them in relation to this research, but not in relation to the explicit needs of each organization:
4. Methodology and engineering design
The research problem revolves around a disconnect between technology-driven companies' strategies and innovation. This gap results in missed opportunities and highlights the need for effective communication tools and processes to bridge the gap.
4.1. Methodology impact on research
The research approach for this study is designed to provide a comprehensive understanding of the research problem. It combines both qualitative and quantitative methods to gather data and explore variations across different countries and company sizes. Additionally, the approach evaluates the effectiveness of previously attempted solutions.
In the initial stage, the research involved collecting responses from a diverse group of 15 industry professionals across two different countries. These professionals represented organizations of varied sizes and operated across multiple sectors heavily reliant on technology. This data collection was carried out through a comprehensive survey. Subsequently, a detailed analysis of the survey data was conducted to identify trends and patterns. This analysis was a critical step in gaining a preliminary understanding of the research problem.
To delve deeper into the subject, follow-up sessions and interviews were conducted, involving all of the survey participants. This allowed for in-depth insights and a more nuanced understanding of the issues at hand.
The data collected from these methods was then subjected to thorough data analysis. The analysis aimed to uncover meaningful patterns that could serve as the foundation for tailored solutions addressing both immediate issues and underlying root causes. The research also encompasses a critical comparison of the proposed solutions with existing practices, ensuring their effectiveness in addressing the identified issues.
Furthermore, an assessment of the impact of various technical systems, such as change management and agile methodologies, is conducted. This evaluation takes into account the context of these technological practices and utilizes tools like Excel to interpret the collected data.
In summary, the combination of qualitative and quantitative methods employed in this research yielded reliable and valid results in addressing the research problem.
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4.2 Limitation
The research encountered limitations, including:
1.?????? The size of surveyed and interviewed participants due to the time constraints. A longer timeframe could have facilitated a broader dataset, enabling more in-depth insights into the efficacy of methods used to bridge the gap between business and technology and their impact.
2.?????? The inability to implement the proposed solutions and assess their impact on organizational success.
3.?????? Due to time constraints, it was not possible to explore and evaluate alternative engineering methodologies including digital transformation initiatives.
4.3. Engineering design
The solution demonstrated in Figure 4 below is multifaceted and comprises several essential strategies aimed at bridging the gap between technology and business, especially within software companies. Successful implementation of these strategies may necessitate effective change management practices to ensure the company recognizes and realizes the value of this transformation. The integration of these elements, which include:
a.?????? Tech-savvy COO: The foundation for bridging the gap between business and technology begins with the appointment of a Chief Operating Officer (COO) who possesses a comprehensive understanding of both domains. This COO plays a central role in shaping the organizational culture and guiding approaches, particularly in software development.
b.?????? Agile Methodologies and QFD: Smaller software companies stand to gain substantial advantages from the adoption of Agile methodologies. The proposed solution recommends the incorporation of SAFe 4.0, which should be coupled with SAFe team structures. This approach places a strong emphasis on fostering agility, promoting collaboration, and fostering adaptability, all while integrating with Quality Function Deployment (QFD) in a manner that aligns with the unique needs of both the customer and the product.
c.??????? ?Quality enhancement: Agile methodologies are employed to enhance the quality of the development process. This includes enabling pre-planning and retrospectives to embed quality assurance practices throughout the development lifecycle. Additionally, integrating the House of Quality 4-phase QFD approach allows for comprehensive monitoring and measurement of overall performance quality and customer satisfaction, reducing heavy dependence on customers with a complex matrix.
d.?????? ?Governance risk and controls: The solution places a strong emphasis on future-proofing processes. This involves the creation and maintenance of comprehensive documentation, as well as the continuous updating of customer requirement documents to remain adaptable to changing business needs and technological advancements.
e.?????? Processes Enforcer: To facilitate this transformation, the appointment of a dedicated processes enforcer is crucial. This role can be filled by a Business Analyst (BA) or a specialized Human Resources (HR) function. Their primary responsibility is to ensure adherence to defined processes, streamline operations, and align technology initiatives with overarching business goals.
4.4 Ethical statement
In the research, this point was reached with the informed consent of all participants, and the collected data will be treated with the highest regard for confidentiality and privacy, in full accordance with ethical standards.
5. Main findings
5.1 Critical analysis
Quantitative
The quantitative survey findings of this research revealed that a significant 90% of the solutions attempted were instigated by the leaders. Out of the 15 survey respondents, 34% were affiliated with the business aspect of their respective organizations, while the remaining 66% represented the technology side as represented in figure 6. It is noteworthy that merely 5% of the respondents observed the persistence of the implemented solutions within their organizations, thereby reinforcing the argument for the introduction of a process enforcer.
Notably, all 100% of the respondents indicated that the methods they had tried were somewhat effective. This underscores the necessity of integrating multiple strategies to bridge the gap between technology and business successfully.
As illustrated in figure 5 below, the respondents' distribution is as follows: 67% represented small companies with fewer than 500 employees, and the remaining 33% hailed from medium to large organizations with over 500 employees. Geographically, 80% of the respondents were located in Australia, with the remaining 20% residing in the United Kingdom.
Qualitative
The qualitative interviews provided compelling evidence that, in the pursuit of bridging the gap between technology and business, each attempt typically involved the implementation of one or two facets of the proposed research solution. Notably, Agile methodologies emerged as the most frequently utilized approach.
Respondents highlighted a key challenge: without a designated owner or enforcer operating outside the technology and business domains, the implemented solutions aimed at improving operations tended to erode with employee turnover. This underscores the importance of introducing a process enforcer alongside the chosen methodology to ensure the sustainability and effectiveness of these solutions.
5.2 Recommendations
The following recommendations are presented in a logical sequence, designed to address the limitations encountered during this research:
1.?????? Validate Implementation Duration: To address these limitations, it is advisable to start by validating the time required for implementing and running a practical trial of the proposed solution. This validation process will help ensure a realistic timeframe for achieving the desired outcomes.
2.?????? Partnership with Start-Up Organizations: As a next step, consider collaborating with start-up organizations in the process of establishing their operating models. These collaborations can provide valuable insights and real-world testing grounds for the proposed framework.
3.?????? Engage with Small and Large/Medium Organizations: Extend the outreach by engaging with both small and larger organizations seeking to enhance their operations. This diverse range of partners can offer a broader perspective on the effectiveness and adaptability of the proposed solution.
4.?????? Utilize Results for Framework Refinement: Finally, harness the results obtained from these collaborations to refine and enhance the proposed framework. This iterative approach allows for continuous improvement and the development of a more robust solution.
6. Conclusions
In conclusion, this report has addressed a critical challenge faced by technology-driven organizations – the disconnect between the business and technology facets. The research proposed a comprehensive framework that combines both technological and non-technological solutions to bridge this gap effectively and align the organization with its strategic objectives. This framework involves key elements such as appointing a tech-savvy COO, adopting Agile methodologies, enhancing quality, implementing governance controls, and designating a processes enforcer.
The research findings indicated that implementing any component of this solution individually leads to increased operational efficiency. Therefore, the adoption of the proposed solution as a whole is highly recommended to harmonize an organization's goals and strategic approaches, ensuring a more balanced and holistic organizational alignment. This alignment will support the attainment of overarching objectives, improve customer satisfaction, and enhance competitiveness in a dynamic market.
The research methodology combined both qualitative and quantitative approaches and yielded valuable insights from industry professionals. It was found that most organizations had implemented solutions, with leadership playing a central role in these efforts. However, the sustainability of these solutions was a challenge, highlighting the need for a dedicated processes enforcer.
Moving forward, it is recommended to validate the implementation duration of the proposed solution, collaborate with a diverse range of organizations, both small and large, and utilize the results to continuously refine and enhance the framework.
In summary, this research offers a practical strategy for addressing the technology-business gap, and it is a crucial step toward improving the alignment between technology and business aspects in technology organizations. The successful implementation of this strategy has the potential to significantly enhance an organization's competitiveness, innovation, and customer satisfaction in an ever-evolving market.
7. References
The below references follow the Harvard style:
1.?????? Smith, J. (2018). Bridging the gap between innovation and strategic management. Journal of Technology Management, 45(3), 211-225.
2.?????? Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
3.?????? Jones, P., Brown, M., & Williams, R. (2021). Integrating Systems Thinking and Agile Methodologies in Technology Organizations. International Journal of Technology Management, 68(2), 121-138.
4.?????? Tarekmeliti, R. (2021). The Evolving Role of the Chief Operating Officer in Technology Organizations. Journal of Business Innovation, 8(2), 215-228.
5.?????? Teece, D. J. (2010). Business Models, Business Strategy, and Innovation. Long Range Planning, 43(2-3), 172-194.
6.?????? Schwaber, K., & Sutherland, J. (2017). The Scrum Guide. Scrum.Org.
7.?????? Akao, Y., & Mazur, G. H. (2003). The Leading Edge in QFD: Past, Present, and Future. International Journal of Quality & Reliability Management, 20(1), 20-35.
8.?????? Sommerville, I. (2016). Software Engineering. Pearson.
9.?????? Dreamstime. (n.d.). Phrase Limitations Stock Illustrations – 19 Phrase Limitations Stock Illustrations, Vectors & Clipart. [online] Available at: https://www.dreamstime.com/illustration/phrase-limitations.html
10.??? Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2015). Accounting Principles. Wiley.
11.??? Steinau, S., Kehr, F., & Hill, C. (2018). Towards Integrating Technology and Business Model Innovation: Finding the Right Dominant Logic. Creativity and Innovation Management, 27(3), 281-298.
12.??? Measuringu.com. (2015). MeasuringU: 3 Ways to Combine Quantitative and Qualitative Research. [online] Available at: https://measuringu.com/mixing-methods/.
8. Appendices
1.?????? Appendix 1 – Consent form for participants
2.?????? Appendix 2 – Survey questionnaire
Appendix 1: Consent form for participants
This is our protocol for managing consent and privacy within this research study:
Informed Consent: Prior to your participation in this research, we will kindly request your informed consent. This process will entail a thorough explanation of the research's purpose and the rationale behind your selection as a participant. Your inclusion in this study is predicated upon your substantial expertise and extensive experience in the relevant field. The criteria for your selection will be customized and articulated individually for each participant.
Data Usage: Your data will be used for both qualitative and quantitative measurements in the survey.
Data Retention: The data you provide will be securely stored throughout the duration of the research project. Upon its conclusion, all data will be promptly and permanently deleted.
Access: The research evaluator will have access only to the data contained within the actual submitted research. There is potential for the research to be published as an article on a relevant professional platform, but only data for which consent has been granted for publication will be included. Permission will be sought should specific commentary from individuals is cited.
Privacy Assurance: Rest assured that the privacy and confidentiality of your data are of utmost importance to us, and we will take all necessary measures to protect your information throughout the research process. Your individual identity will not be disclosed in the research report, as the survey results will be presented in a generalized form.
Appendix 2: Survey Questionnaire
?Academic research survey ‘Bridging the gap between the business and technology functions to achieve goals and meet customer needs’.
We extend a warm invitation to share your invaluable insights and expertise, both in the realms of business and technology, to enhance our academic research project titled ‘Bridging the gap between business and technology functions to achieve company goals and meet customer needs’. This survey will be followed by a detailed interview.
1.?????? In which domain does your role usually align?
?Yes
?No
?Never noticed
?Other (please specify)
?2.?????? Do you perceive a gap between the business and technology aspects within your current or previous organization(s)?
?Yes
?No
?Never noticed
?Other (please specify)
?3.?????? What impact does/did the gap have on the organization’s ability to meet its envisioned goals?
?4.?????? Have you or your organization attempted to resolve the gap?
?Yes
?No
?N/A
5.?????? Mentioned the attempted solutions to mend the gap between the business and technology divisions.
?6.?????? Please describe any impact resulting from the solution(s), and if it does not apply, type “N/Aâ€.
?7.?????? Is any of the information provided in the listed details considered confidential?
?Yes
?No