The Reality of the Management-IT Divide
A shocking figure has emerged from Cybozu’s survey on “The Positioning of IT Strategy within Business Strategy.” Approximately 40% of companies reported that they position their business strategy and IT strategy separately.
In other words, four out of ten companies may have their business direction and IT investments moving in different directions. This figure confirms the long-discussed “gap between management and IT.”
Why does this situation arise? And what risks does this divide pose to businesses?
When IT Strategy Loses Its “Purpose”
Positioning business strategy and IT strategy separately often means that the purpose of IT investments is not aligned with business goals.
For example, a company’s business strategy might focus on “acquiring new customers,” while its IT strategy is solely aimed at “stable operation of existing systems.” Or, while management prioritizes “cost reduction,” the IT department pursues “adopting the latest technology.”
In such situations, it becomes impossible to measure the results of IT investments against business goals. This leads to a vicious cycle where “IT investments don’t show ROI.”
The Confusion Caused by Fragmented Objective Functions
In many companies I’ve observed, a “fragmentation of objective functions” occurs, where the purpose of IT differs from department to department.
The sales department wants “tools to increase revenue,” the accounting department wants “accurate data management,” and the IT department wants “security and stability.” While each request is valid, the lack of a unified direction often means the tools introduced don’t integrate, sometimes even decreasing operational efficiency.
The root cause of this problem is that management failed to define the purpose of IT. Positioning business and IT strategies separately is essentially leaving the purpose of IT to the front lines.
Learning from Recruitment DX: Purpose-Driven IT Implementation
At the “Digitalization/DX Promotion Exhibition” mentioned in the same news, “Rakuruto,” a recruitment DX solution, was showcased. Recruitment DX is an excellent example of integrating business and IT strategies.
Recruitment activities are directly linked to “securing talent,” a core element of business strategy. Efficiently hiring top talent is essential for a company’s growth. Companies adopting recruitment DX first clarify their business goals—”what kind of talent, through what process, and at what cost”—before selecting tools.
For instance, one company, based on the management decision to “prioritize post-hire retention rates over the number of applicants,” introduced aptitude tests and interview evaluation systems. In this case, the success of the IT investment is measured by “improvement in retention rates.” Because the business goal and the purpose of the IT investment are aligned, the effect can be verified.
How Management Can “Define” IT
To integrate business and IT strategies, management needs to redefine IT as a “decision-making tool” and a “means of designing for reproducibility.”
Think in Terms of Three IT Categories
Specifically, classify IT investments into the following three categories and clarify the purpose and evaluation criteria for each.
Business IT: Directly linked to growth and revenue. Prioritizes speed. Examples: Marketing automation, CRM. Evaluation criteria: Revenue growth rate, number of leads acquired.
Management IT: For decision-making and reproducibility. Prioritizes integration. Examples: BI tools, management dashboards. Evaluation criteria: Speed of decision-making, data accuracy.
Administrative IT: For stable operations and cost management. Prioritizes stability. Examples: Accounting systems, payroll systems. Evaluation criteria: Downtime, operational costs.
Based on this classification, it’s crucial to link the purpose of each IT investment to the business strategy. For example, investments in “Business IT” should be directly tied to the “revenue target” in the business strategy, while investments in “Administrative IT” should be linked to “cost reduction targets.” This allows the effectiveness of IT investments to be measured using business metrics.
The Deeper Meaning of the “Approximately 40%” Survey Result
The “approximately 40%” figure from Cybozu’s survey is by no means a cause for optimism. Rather, it should be seen as indicating the proportion of companies at risk of “IT investment failure.”
Companies where business and IT strategies operate separately face the following risks:
Duplicate Investments: Waste occurs from introducing multiple tools with similar functions.
Data Silos: Using different systems per department prevents data integration, hindering optimal company-wide decision-making.
Increased Reliance on Specific Individuals: Systems usable only by specific personnel increase, and operations may halt if that person leaves.
Slow Response to Change: Inability to quickly adapt IT in response to changes in the business environment.
To avoid these risks, management must reframe IT strategy as “a part of business strategy.” Instead of leaving it to the IT department or vendors, management itself must define the purpose of IT. This is the only path to successful IT investment.
Conclusion: Integrating Business and IT Strategy is Essential
Cybozu’s survey results show that many Japanese companies suffer from the structural problem of a divide between management and IT. To solve this, management must define IT as a “management resource” and integrate business and IT strategies.
As specific actions, I propose the following three steps:
Link the purpose of IT investments to business goals: Clarify “why” and “what results are expected” for every IT investment.
Introduce the three IT categories: Classify IT into Business IT, Management IT, and Administrative IT, and set evaluation criteria for each.
Regularly verify the effectiveness of IT investments: Report the results of IT investments at management meetings and adjust course as needed.
IT is not a “technical area to be left to specialists.” It is a management resource that management itself must define and design. Without this understanding, IT investment failures will continue.
Integrating business and IT strategy is the responsibility of management in the coming era.
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