Significant Challenges Facing Information Technology (IT)

Dr. O. Aly
Computer Science

The purpose of this discussion is to write a research position on some of the most significant challenges facing information technology (IT) today.  The focus is on the top 5 issues that are considered the most important from the researcher’s point of view.  These challenges can be a strategy, budget, pace, scope, architectures, mergers or acquisitions, technologies, devices, skills, and chief information officer (CIO) role.

Challenges Facing Information Technology Department

Various reports and studies discussed various challenges that the information technology (IT) department is facing (Brooks, 2014; Global Knowledge, 2018; Heibutzki, 2018). The top five challenges that are chosen for this discussion include budget, pace, security, strategy and skills.

Budget:  Business requires an allotment of the budget not only to keep up with the technology but also to keep up with the regulations (Heltzel, 2018).  Small and medium-size businesses are confronted with more budget challenges than large organizations. Understanding the business capabilities and the use of the information technology can help understand the budget requirements.  The budget requirements involve every department of the business, as it is all-encompassing.  If the budget is limited, the business will be limited and can be dragged behind while the wheel of technology is still moving on an unprecedented pace, and other competitors are gaining more advantages in the market.  Thus, careful examination of the financial resources must be performed by an organization to act as fast as other competitors.

Technology Pace: The next challenge that is facing the IT department is the pace of the technology. In the age of the digital world, the data generation is increasing at a fast pace.  McKinsey Global Institute indicates that Big data is the next frontier for innovation, competition, and productivity (Manyika et al., 2011).  The application of Big Data (BD) and Big Data Analytics (BDA) will become a fundamental basis for competition and growth from businesses. Organizations can gain competitive advantages when using BD and BDA.  The emerging technology of cloud computing, internet of things, the blockchain, quantum computing and so forth place pressure on business to consider the latest technology to stay in business.

Security: Security is the third major challenge that is facing the IT department.  Security comes with various regulations and rules.  Some security regulations and rules are broadly applicable, while other are industry specific (CSO, 2012).  Sarbanes-Oxley Act (SOX) is an example of the broadly applicable security law and regulations, while the Health Insurance Portability and Accountability Act (HIPAA) is an example of the industry-specific guidelines and requirements.  IT department should not only keep up with these regulations but also fully comply with them to protect users private information and avoid penalties.

Strategy:  One of the challenges that face IT is the strategy that encompasses all the requirement of the business in a governance framework.  IT strategy is not a nice to have, but it is required for sound organizational performance (Arefin, Hoque, & Bao, 2015). It should be aligned with the business strategy. The strategy should involve various aspects of the business from storing the data to customer relationship management systems, to analyzing data.  Strategic IT is a comprehensive plan which outlines how technology should be used to meet IT and business goals.  It is driven by the mission statement and mission objectives of the business.  The IT strategy affects the budget of the business as it will require some investments in technology, devices, tools, and workforces. 

Skills:  In the age of the digital world and the era of BD and BDA, the IT department is challenged with hiring the professionals who have the skills to work with the latest technology.  Skills for traditional systems such as data warehouse, or relational database are not the challenge, but the skills for the new technologies such as machine learning algorithms, analytical skills, cloud computing, the blockchain, and quantum computing, all of which require skills that are lacking in the professional market.  While organizations are under pressure to apply BD and BDA, statistics show that 37% shortage of skilled professionals (McCafferly, 2015), which is an example of the shortage of the skills that add additional burden on the IT.

Conclusion

This discussion addressed five significant challenges that are facing the information technology. The budget constraint in the presence of fast technology pace is the first challenge while keeping up with the emerging technologies in the age of the digital world is another challenge. IT department is required to comply with all of the security regulations and rules. Otherwise, heavy penalties can add more constraints on the budget.  The strategic IT is mandatory and should be aligned with the business goals and objectives. The skilled workforce is another challenge as technology is evolving and developing the required skills require time which organizations cannot afford in the age of fast pace evolving technologies.

References

Arefin, M. S., Hoque, M. R., & Bao, Y. (2015). The impact of business intelligence on organization’s effectiveness: an empirical study. Journal of Systems and Information Technology, 17(3), 263-285.

Brooks, C. (2014). The 5 Big Challenges Facing IT Departments.

CSO. (2012). The security laws, regulations and guidelines directory.  

Global Knowledge. (2018). 12 Challenges Facing IT Professionals. Retrieved from https://www.globalknowledge.com/us-en/resources/resource-library/articles/12-challenges-facing-it-professionals/. 

Heibutzki, R. (2018). Challenges of Information Technology Management in the 21st Century.

Heltzel, P. (2018). The 12 Biggest Issues IT Faces Today. Retrieved from https://www.cio.com/article/3245772/it-strategy/the-12-biggest-issues-it-faces-today.html. 

Manyika, J., Chui, M., Brown, B., Bughin, J., Dobbs, R., Roxburgh, C., & Byers, A. H. (2011). Big Data: The Next Frontier for Innovation, Competition, and Productivity. McKinsey Global Institute.

McCafferly, D. (2015). How To Overcome Big Data Barriers. Retrieved from https://www.cioinsight.com/it-strategy/big-data/slideshows/how-to-overcome-big-data-barriers.html.