How to End the IT Blame Game

Why It Matters

If firms shift accountability for technology outcomes to business leaders and treat core IT services as utilities, they can reduce costly failures and unlock real digital advantage.

Key Takeaways

• AI projects deliver ROI in only 25% cases
• Business leaders, not IT, must own tech decisions
• Commodity IT should be managed like a utility
• Digital advantage lies in data, AI, product teams
• SMBs outsource KLO services, focus on growth

Pulse Analysis

The conversation about IT’s relevance dates back to Nicholas Carr’s 2003 Harvard Business Review piece, which labeled technology a commodity. Two decades later, AI hype has revived the debate, but recent IBM data shows just 25% of AI initiatives achieve expected returns. This gap isn’t a failure of the technology itself; it reflects a mismatch between strategic intent and execution, often exacerbated by executives offloading critical decisions to IT departments that are structured for stability rather than innovation.

A deeper problem lies in conflating the IT operating model—how digital assets run the business—with the IT organizing model—how tech talent is arranged. Large enterprises wrestle with competing demands from marketing, finance, and operations, creating a fragmented governance landscape that stalls projects. In contrast, small‑and‑medium businesses, unburdened by layered CIO hierarchies, outsource commodity services and focus on growth‑centric capabilities. Both worlds, however, encounter similar failures when the organization cannot access the right mix of data, AI readiness, and digital product expertise, underscoring that the issue is not IT’s existence but the placement of strategic tech skills.

To break the cycle, three shifts are essential. First, treat keep‑the‑lights‑on (KLO) IT as a utility—reliable, predictable, and cost‑transparent—so it no longer competes for strategic focus. Second, locate digital and AI capabilities within business‑centric units, enabling agile product teams, data governance, and analytics to operate close to revenue and customer touchpoints. Third, hold business leaders accountable for technology outcomes, recognizing tech spend as a core investment rather than an IT service request. By realigning responsibility and embedding tech fluency across the organization, firms can move beyond blame‑games and harness technology as a true driver of competitive advantage.