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Sorry Dave · Mar 15, 2024

Product/Market Fit for IT Departments

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Todd Moses · Sorry Dave

Is your IT department relevant to the organization's needs?

Why it matters: VC investor Marc Andreessen explains that product/market fit is the only thing that matters for companies.

  • Product/market fit measures how relevant a company is to its market.

  • According to Y-Combinator partner Michael Siebel, 90% of startups fail due to a lack of product market fit.

  • IT departments should view the organization as a customer and work to achieve product/market like a startup venture.

The big picture: Siebel concludes that product/market fit takes 1 to 5 years.

  • However, IT departments can do it much faster by talking to their one and only customer.

  • Unlike a startup, it will continue to exist if the IT department does not achieve relevance.

  • Like a startup without product/market fit and money left in the bank, these zombie IT departments spend money with no return on investment.

What they're saying: A popular post on Hacker News titled "Why everyone hates the IT department" explains user frustrations:

  • No one cares about the IT department until something goes wrong.

  • The IT staff generally resent you for asking them to do things.

  • IT people will often try to bluff their way through problems.

  • One person got downvoted for commenting, "I do not hate my IT dept. They're very prompt."

Between the lines: When the executive team embraces IT as a component of success rather than an expense, the organization is better off.

  • However, such a position requires the IT team first to demonstrate value.

  • Just like the startup needs product/market fit, the IT team must discover and provide what the customer wants.

  • Most of the user frustrations with IT are a result of poor communication.

Follow the money: The output of the IT department must be greater than the input.

  • As AI continues its push into the workforce, the IT departments that do not provide value will be replaced.

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  • According to a Slashdot user, many employees already Google their issue instead of submitting a help desk request.

Go deeper: Reach out for a free copy of the State of Software report for 2024.

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