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In the digital era, the ability to adopt and integrate technology quickly has become a key driver of business success. Technology decisions are increasingly being made outside IT organizations as cloud-based tools, SaaS platforms, and low-code/no-code solutions become more accessible. Known as business-led IT, this trend democratizes technology, empowering business leaders to innovate independently. Many of today’s business leaders, who grew up in the digital era using smartphones and iPads, are accustomed to technology in all aspects of their lives and confident in making independent solution decisions. However, with this empowerment comes new responsibilities and risks.
As the democratization of technology takes root, business leaders are taking on an expanded role as solution owners. The challenge is that digital-native leaders aren’t always familiar with the risks associated with their independent solution decisions. While they are confident in adopting technology, they may overlook governance and risk management when implementing their chosen platforms.
The real digital transformation for digital-native leaders lies in balancing bold technology adoption with a forward-looking approach to governance and risk management. Mastering the dynamics of business-led IT is essential for achieving sustainable success in an ever-evolving landscape.
The democratization of technology decisions – Why it’s happening
First, lets dig into the key drivers behind the shift to democratized IT:
- Solution accessibility: The accessibility of SaaS solutions and the tsunami of easy to procure generative AI solutions make it easy for non-technical leaders to obtain solutions independently without IT.
- Market demands: Companies and departments like marketing, supply chain teams, and operations are challenged to innovate at a faster rate to stay competitive and create efficiencies.
- Frustrations with IT: A persistent perception among leaders is that their IT departments are slow to respond. Whether true or not, IT organizations often lack the bandwidth to respond to every request immediately. This drives business leaders to seek their own solutions.
- Increased empow