The State of IT in Organizations in 2024: Challenges and Opportunities

 

The year 2024 is a critical one for organizations around the world, as they face not only economic volatility, geopolitical instability, and the lingering effects of the COVID-19 pandemic, but also a range of organizational shifts that have significant implications for their structures, processes, and people. These shifts include complex questions about how to organize for speed and resilience, find the right balance between in-person and remote work models, address employees’ declining mental health, and build new institutional capabilities at a time of rapid technological change, among others.

In this article, I will explore three most important shifts that organizations are grappling with, and provide some ideas and suggestions on how to approach them, based on the latest research and best practices from leading experts and practitioners.

Increasing speed, strengthening resilience

One of the key challenges that organizations face today is how to increase their speed and agility, while also strengthening their resilience and ability to cope with future shocks. According to a survey of more than 2,500 business leaders conducted by McKinsey², only half of the respondents say their organization is well prepared to anticipate and react to external shocks, and two-thirds see their organization as overly complex and inefficient.

To address this challenge, organizations need to adopt a mindset of continuous learning and adaptation, and embrace a culture of experimentation and innovation. They also need to streamline their decision-making processes, empower their frontline employees, and leverage data and analytics to inform their actions. Moreover, they need to invest in their digital capabilities, such as cloud computing, artificial intelligence (AI), and cybersecurity, to enable faster and more secure operations. Digital Trust will be essential as cyber security threats will be increasingly more sophisticated and authenticity of users will become more crucial.

‘True hybrid’: The new balance of in-person and remote work

Another major shift that organizations are experiencing is the transition to a hybrid work model, where employees can work from off-site locations for some or much of the time. This shift was accelerated by the COVID-19 pandemic, which forced many organizations to adopt remote work as a necessity. However, even after the pandemic subsides, many organizations are expected to continue with hybrid work as a strategic choice, as it offers benefits such as increased productivity, flexibility, and employee satisfaction.

However, hybrid work also poses some challenges, such as maintaining collaboration, communication, and culture across distributed teams, ensuring equity and inclusion for all employees, and providing adequate support and resources for remote workers. To overcome these challenges, organizations need to rethink their work policies, practices, and norms, and design a ‘true hybrid’ model that balances the needs and preferences of both in-person and remote workers. They also need to leverage digital tools and platforms, such as video conferencing, instant messaging, and project management software, to facilitate seamless and effective collaboration and communication. There are a plethora of tolls in this space now and IT departments will have to ensure they manage these solutions more effectively as well.

Making way for applied AI

A third significant shift that organizations are witnessing is the rise of AI as a powerful and pervasive technology that can transform various aspects of their business. AI can help organizations automate tasks, optimize processes, enhance customer experiences, generate insights, and create new value propositions. According to a study by Spiceworks³, organizations spend a median of 11.1% of their total IT budget on AI, and this figure is expected to increase in the future.

However, AI also brings some challenges, such as ensuring the quality, reliability, and ethics of AI systems, managing the impact of AI on the workforce and the society, and fostering a culture of trust and collaboration between humans and machines. To address these challenges, organizations need to adopt a holistic and human-centric approach to AI, and focus on applying AI to solve real business problems and create positive outcomes. They also need to develop the skills and capabilities of their employees, partners, and customers, to enable them to use, interact with, and benefit from AI. Many organizations are extensively using this technology for increased productivity and more personalized customer experiences.

 

Conclusion

The state of IT in organizations in 2024 is dynamic and complex, as organizations face multiple shifts and uncertainties in their environment and operations. However, these shifts also offer opportunities for organizations to innovate, differentiate, and grow, by embracing change and adopting new technologies and practices. By doing so, organizations can not only survive, but also thrive, in the new normal.

Source(s)

1. The State of Organizations in 2023 | McKinsey

2. State of IT 2024 - Research - Spiceworks

3. The State of IT Spend 2024: Key Takeaways - Spiceworks