A one-team project or a cross-functional collaboration? – This is the recipe for a productivity leap
Who is responsible for technology and business? Spoiler alert: It’s a shared responsibility. In her latest blog, Tia Jähi explains how horizontal collaboration thrives and why it’s important.
They say a fool with a tool is still a fool. In other words, just having the right tools doesn’t automatically guarantee success.
Don’t get me wrong – having good tools is essential. But in order to achieve significant change and meaningful results, companies must rethink the way they operate. Business operations and technology must be developed hand in hand to achieve sustainable growth in both business and value. A well-thought-out operational model is key to laying a strong foundation for a significant productivity leap.
This brings me to one of my favourite topics: cross-departmental collaboration, also known as horizontal integration. At Sofigate, we recently conducted a market study* on technology investments and their impact. The results were eye opening. As many as 69% of the business leaders we interviewed admitted that value production in these projects was confined to a single organisational silo – such as IT.
In other words, there is a clear gap between IT and business leadership. By bridging this gap, we can create an environment where it is possible to develop capabilities and technology simultaneously. This way we can not only maximise the value of technology investments but also create a significant leap in productivity.
The union of business and technology creates true benefits
None of this happens on its own. Successful cooperation is only possible when we look beyond our individual responsibilities and focus on the future.
This means that a business leader must understand technology and be interested in its potential, while an IT leader must grasp business fundamentals and financial objectives to support them effectively. This kind of “cross-pollination” between roles is essential for unlocking the true benefits of technology investments.
Everyone in the organisation must understand the importance of technology – it is not just as an enabler but a core component of business. This is why the term “business technology” is an apt way to describe how closely the two are intertwined.
Existing models speed up the process
Over the past decade, organisations have finally woken up to the possibilities offered by technology, such as artificial intelligence. At the same time, they have embraced processes that combine technology and business into one seamless entity. One such model is the Business Technology Standard**.
The Business Technology Standard brings together business and technology stakeholders across organisational structures, breaking down the silos that often form within companies. It ensures that every technology project has a dedicated owner within the organisation and delivers tangible benefits. Additionally, it guarantees that all knowledge and capabilities developed during the process genuinely support business targets.
“A fool with a tool is still a fool.” Just because a project is finished on time and within budget doesn’t guarantee that it has been successful. True business value is only realised when:
- The organisation integrates it into day-to-day operations.
- The features align with business needs.
- It can be used efficiently.
Kneading the dough of horizontal collaboration
When it comes to this collaboration, there is still a long way to go. Our study showed that only 22% of the respondents believe major breakthroughs are being achieved through development projects. In other words, what’s needed is a significant renewal of processes or businesses rather than just an upgrade to existing systems.
When business and technology are developed hand in hand, the impact is visible on the bottom line. This approach provides organisations with a significant competitive edge that will sustain them well into the future.
Let’s explore this with a simple, practical example. Picture three corner shop bakeries, each representing a different approach to using technology. These examples show how much the use of technology can vary across organisations and how horizontal cooperation can create successes that would otherwise be difficult to achieve.
1. Technology as a support function
In our first example, we look at a traditional corner shop where the owner is responsible for both quality control and customer service. In this bakery, technology is just a tool that helps manage day-to-day business. The computer is used for maintaining the customer database and the cash register for handling payments. When cinnamon bun sales rise, the baker only notices it because those days are busier than usual.
To track the most popular days, the baker adds a field to the customer database. This makes it is easier to see which products are more popular on specific days, and the baker realises that demand for cinnamon buns is highest on Fridays. While this information is useful, it isn’t used for developing seasonal products or for marketing purposes. In this model, technology supports business but doesn’t transform it. The IT partner is responsible for ensuring that different tools work properly and for making changes to existing processes when needed.
This bakery is on a steady track: products keep selling, but any opportunities for growth are being overlooked.
2. Technology as an enabler
In the neighbouring bakery, the owner sees technology as more than just a tool that makes life easier. Their IT system not only tracks sales data but also analyses it. The data reveals that significantly more chocolate brownies are sold on afternoons when children stop by on their way home from school. On the other hand, there’s a clear rise in the sale of oat biscuits on weekends.
Technology helps the bakery adjust its production: on school days, they bake more chocolate products, while on weekends, the focus shifts to oat biscuits. Cash registers, order management systems, and sales analytics work seamlessly together. Although technology is being used efficiently, all strategic decisions and product development remain the baker’s responsibility.
Technology is a pillar to lean on, but it is not at the heart of business. The bakery can grow, but it hasn’t yet reached its full potential.
3. Seamless collaboration of technology and business
Out third bakery is an example of how technology and business can be seamlessly intertwined. The owner doesn’t operate alone – he has a team that includes a data-analyst and a technology expert. Together, they have created a system that combines customer data, customer loyalty programs, and predictive analytics using AI agents.
The system not only saves purchasing data but also predicts customer preferences. For example, it can send notifications to customers when cinnamon buns are fresh out the oven. Technology also helps suggest new products – AI agents track popular food blogs and keep the owner updated on trending items. The bakery’s leaderships team can optimise production, adjust staffing on busy days, and create an experience that makes their customers feel as if the bakery is reading their minds. Customers feel valued and word-of-mouth recommendations help grow the bakery’s reputation.
In this bakery, technology isn’t just a tool or a support function. It is an integral part of business development and collaboration between different experts, enabling continuous innovation and sustainable growth.
Which bakery do you think will be the most successful? And which would you prefer as a customer?
A productivity leap with collaboration
The third approach, horizontal collaboration, helps companies execute their strategy more efficiently. It saves resources and delivers faster, measurable results. Not only does it provide a competitive advantage, but it also increases the likelihood of achieving strategic goals. In the future, AI agents will become an integral part of teams and workflows. Some tasks will be taken over by artificial intelligence colleagues, and this must be seamlessly integrated into the collaboration processes.
What it all boils down to is understanding and adopting the benefits of Business Technology in the right way – not as a standalone tool, but as a seamless part of the organisation. In the future, an organisation will resemble a well-kneaded dough: with all ingredients working together, the result will rise to perfection.
This is the second part of the blog series diving deeper into Sofigate’s market study “Looking for a Leap in Productivity”. Read the other parts of the blog series:
A small facelift or a proper renewal? – Set your aim high enough in your next IT project
From inclusion to true participation – Put people at the heart of your IT project
About the author:
Tia Jähi is a Business Technology leader and a determined business developer. She has decades of experience in leveraging technology to drive business strategy, whether for growth, efficiency, or success. Before joining the Business Technology Forum, she was responsible for developing IT capabilities for Kone’s European business operations.
*The “Looking for a Leap in Productivity” market study was conducted by Sofigate and completed in October 2024, N=32.
Download the “Looking for a Leap in Productivity” market study report.
**The Business Technology Standard is an internationally advanced open-source framework model published by the Finnish not-for-profit Business Technology Forum, freely available for anyone to use.
Read more about the Business Technology Standard.
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From inclusion to true participation – Put people at the heart of your IT project
