Why Traditional Enterprise IT Departments Are Marginalized and How Digital Transformation Can Create a New IT

1. The current state of IT departments in traditional enterprises – Many companies still define IT functions narrowly (system construction, operation & maintenance, network & information security, computer repair). These low‑value tasks give IT little voice, especially when organizational structures place CIOs high in the hierarchy but limit planning authority, and assessment mechanisms focus on industrial or office metrics rather than business value.

2. Why IT is being sidelined – The root cause is perceived "value": without demonstrable contribution to the core value chain, IT loses influence. Hierarchical, siloed organization hampers communication and responsiveness, while assessment systems are detached from actual business outcomes, reinforcing the marginalization.

3. How to prevent IT from being marginalized – Change is required. IT must become the driver of digital transformation, shifting from a backend support role to a front‑line business partner, from a cost center to a profit center, and from pure maintenance to innovation and empowerment.

4. Redefining IT in the digital age – Move IT staff into business units to understand and design digital solutions that improve efficiency and reduce costs. Transform the operation center into an empowerment center that educates other departments about digital tools and provides them with the necessary skills.

5. From cost center to profit center – View IT investment as a strategic investment rather than an expense, focusing on total cost of ownership, process optimization, quality improvement, cost reduction, and innovation that generate measurable business returns.

6. Handling traditional system maintenance – Adopt unified monitoring, cloud‑native, containerized solutions, and automation to streamline maintenance, freeing resources for higher‑value business initiatives.

7. Deep integration of IT and business – Encourage co‑location of IT and business staff, embed IT personnel in business meetings, and align technical objectives with business goals. Examples include joint project approval processes and cross‑functional teams.

8. Building a digital technology "foundation" – Companies need a tailored digital base, which may consist of platforms (DevOps, micro‑services, low‑code), ERP‑centric shared services, data platforms, or cloud services, depending on their specific context.

9. Leveraging data, tools, and technology for empowerment – Provide digital tools that boost efficiency, apply technologies such as big data, cloud, IoT, AI, and blockchain, and use data to deliver timely insights, support decision‑making, and personalize services.

In summary, the author argues that as technology and business converge, the future workforce will be digitally skilled, and IT departments that embrace transformation will evolve from peripheral support units into strategic profit‑generating partners.