How does IT consulting work?

The IT market has no clear standards established yet, especially in the field of IT consulting. The term “consulting” has become a catch-all phrase for everything under the sun – from audits and implementation support to the sly sales of IT products. Unfortunately, this has left many businesses scratching their heads, wondering what the true value of IT consulting really is. No wonder that sometimes consulting companies find themselves in the position of having to explain to their customers why they need their services. So, let’s break it down: why should businesses use IT consulting? How does it work, and perhaps more importantly, how doesn’t  it work?

IT audit vs. IT consulting

The line between audit and consulting can be blurry, leaving many businesses unsure of which service they truly need at any given moment.

Legal regulations and client awareness are key in establishing market standards. Picture this: your company is about to undergo a tax audit. To prepare for it, you bring in an auditor who meticulously checks your documents for accuracy and compliance with reporting standards. Their ultimate goal is to eliminate any potential grounds for penalties or even legal charges. That’s the bread and butter of an auditor’s job.

But what about consulting? Well, that’s a whole different game. It’s not about correcting errors after the fact; it’s about building processes that prevent them from happening in the first place. How can you avoid mistakes at work? What steps should you take to achieve your business goals? How can you overhaul your system to meet new conditions? These are the questions that consultants answer.

So, an IT audit is like a digital detective, hunting down any existing or potential errors in your system. On the other hand, IT consulting takes a more holistic approach, focusing on achieving strategic and tactical goals within the framework of digital transformation. The key difference is that consulting views business goals through the lens of information technology.

IT Consulting Levels

IT consulting is a multi-level process:

• At the bottom level, there is management consulting that focuses on identifying weaknesses and suggesting changes to improve processes or systems. This level focuses on the question, “How can we adjust existing processes to achieve better results?”
• Architectural consulting takes things up a notch by looking at the bigger picture. This level asks the question, “How can we build or transform the company’s IT architecture to make it more efficient in the context of our business model and goals?” Here, the IT consultant assesses the owners of each business process, checks how the IT architecture reflects the company’s organizational contour, and makes necessary improvements.
• The top level of IT consulting is strategic consulting. At this level, the consultant works with strategic decisions and the restructuring of the business model instead of specific technologies. Here, the question is, “How can we transform our business to achieve our long-term goals?” Strategic consulting has a strong impact on the company’s results, but it requires a clear vision of the future and a general development strategy from the business.

It’s important to note that even at the strategic level, a business should have a vision of its future and a general development strategy. IT consultants can help apply these plans to information technologies and digitalization, but they cannot create the vision or strategy for the business.

Sales vs. Consulting

IT consulting involves system integrators who apply their expertise in specific technologies to solve business problems. However, relying on a limited toolkit can restrict the consultant’s ability to provide effective digital transformation and lead the client’s business into a technological dead end. Choosing an IT consultant with experience in a wide range of technologies is essential for offering different approaches that align with the client’s goals.

On the other hand, some integrators may chase after fashionable technologies like blockchain, computer vision, and machine learning without assessing their relevance to the client’s business. Good IT consultants should not only explain what to do but also why and what results to expect, as well as know how to justify their proposals with figures and prove their efficiency.

What does an IT consultant need to know?

In IT consulting, reasoning and operation are implemented at two levels: the level of business goals and the level of applied solutions. This helps us learn which skills are necessary for a consultant.

The first level is business expertise, which forms the foundation of all consulting services. Without a deep understanding of a company’s goals, strategies, and business processes, it’s impossible to identify the optimal IT solutions that will help achieve those goals. The second level is practical experience, which allows consultants to propose truly effective and viable digitalization scenarios.

With practical experience, IT consultants learn to critically assess technological trends and their potential impact on a business. They gain a clear understanding of the pros and cons of different IT solutions and can draw on actual practical experience to make informed recommendations. However, it’s important to note that proficiency in working with a couple of technologies is not enough to be an effective IT consultant.

The real value of consulting lies in the ability to see problems and processes The IT market is a wild west in many countries, with no clear standards established yet, especially in the field of IT consulting. The term “consulting” has become a catch-all phrase for everything under the sun – from audits and implementation support to the sly sales of IT products. Unfortunately, this has left many businesses scratching their heads, wondering what the true value of IT consulting really is. No wonder consulting companies sometimes have to explain to their customers why they need their services. So, let’s break it down: why should businesses use IT consulting? How does it work, and perhaps more importantly, how doesn’t it work?

IT audit vs. IT consulting

The line between audit and consulting can be blurry, leaving many businesses unsure of which service they truly need at any given moment.

Legal regulations and client awareness are key to establishing market standards. Picture this: your company is about to undergo a tax audit. To prepare for it, you bring in an auditor who meticulously checks your documents for accuracy and compliance with reporting standards. Their ultimate goal is to eliminate any potential grounds for penalties or even legal charges. That’s the bread and butter of an auditor’s job.

But what about consulting? Well, that’s a whole different game. It’s not about correcting errors after the fact; it’s about building processes that prevent them from happening in the first place. How can you avoid mistakes at work? What steps should you take to achieve your business goals? How can you overhaul your system to meet new conditions? These are the questions that consultants answer.

So, an IT audit is like a digital detective, hunting down any existing or potential errors in your system. On the other hand, IT consulting takes a more holistic approach, focusing on achieving strategic and tactical goals within the digital transformation framework. The key difference is that consulting views business goals through information technology.

IT Consulting Levels

IT consulting is a multi-level process:

• At the bottom level, there is management consulting that focuses on identifying weaknesses and suggesting changes to improve processes or systems. This level focuses on the question, “How can we adjust existing processes to achieve better results?”
• Architectural consulting takes things up a notch by looking at the bigger picture. This level asks, “How can we build or transform the company’s IT architecture to make it more efficient in the context of our business model and goals?” Here, the IT consultant assesses the owners of each business process, checks how the IT architecture reflects the company’s organizational contour and makes necessary improvements.
• The top level of IT consulting is strategic consulting. At this level, the consultant works with strategic decisions and restructuring the business model instead of specific technologies. Here, the question is, “How can we transform our business to achieve our long-term goals?” Strategic consulting strongly impacts the company’s results, but it requires a clear vision of the future and a general development strategy for the business.

It’s important to note that a business should have a vision of its future and a general development strategy, even at the strategic level. IT consultants can help apply these plans to information technologies and digitalization, but they cannot create the vision or strategy for the business.

Sales vs. Consulting

Regarding IT consulting, it’s common to see companies that also work as system integrators taking on the job. But how does this impact the consulting process and its outcome? Well, let’s say it can be a double-edged sword.

On the one hand, companies that have mastered certain technologies can apply them to solve their clients’ business problems. However, with limited technologies in their toolkit, consultants can be limited to certain solutions. Instead of carrying out an effective digital transformation, they can drive their client’s business into a technological dead end.

That’s why working with an IT consultant with experience using a wide range of technologies is crucial. With a broader perspective, they can offer different approaches relevant to their client’s business goals.

On the other hand, there’s the chase after fashionable technologies. Everyone’s talking about blockchain, computer vision, and machine learning, making them seem trendy and cool. But the actual number of successful cases using these technologies is not that huge. Integrators offering such technologies as part of their consulting framework don’t always assess their relevance for their client’s business.

A consultant should explain what to do, why, and what results to expect. And if a consultant can justify their proposals and recommendations with figures and practicability, it proves the efficiency of their work. So, when it comes to IT consulting, make sure to choose your consultant wisely to avoid being led down the wrong path.

What does an IT consultant need to know?

In IT consulting, reasoning and operation are implemented at two levels: the level of business goals and the level of applied solutions. This helps us learn which skills are necessary for a consultant.

The first level is business expertise, which forms the foundation of all consulting services. Without a deep understanding of a company’s goals, strategies, and business processes, it’s impossible to identify the optimal IT solutions that will help achieve those goals. The second level is practical experience, allowing consultants to propose effective and viable digitalization scenarios.

With practical experience, IT consultants learn to critically assess technological trends and their potential impact on a business. They understand the pros and cons of different IT solutions and can draw on practical experience to make informed recommendations. However, it’s important to note that proficiency in working with a couple of technologies is not enough to be an effective IT consultant.

Note: An IT consultant should be well-versed in IT security practices and be able to recommend solutions that protect your data and systems from cyber threats. This includes implementing firewalls, intrusion detection systems, and other security measures.

How can I take the most advantage of IT consultancy?

The success of IT consulting depends on both the contractor and the customer. If you want to get the most out of your consulting experience, there are a few things to keep in mind:

• Having a clear business strategy and vision for your company is important. While consultants can help fine-tune your approach, the ultimate responsibility for strategy lies with the C-level managers and owners;
• Have a list of specific business tasks that need attention. Rather than vague suggestions, consultants should provide step-by-step solutions to help you achieve your goals.
• Be open to feedback: An IT consultant can provide valuable insights and recommendations based on their experience and expertise. Be open to their feedback and suggestions, and incorporate them into your project if they align with your goals.
• Provide feedback yourself too. Give your consultant feedback throughout the project, both positive and constructive. Let them know what is working well and where there is room for improvement. This can help ensure that the project stays on track and the consultant meets your expectations.

If you’re expecting consultants to handle technological tasks like developing a portal or integrating a system, you may be barking up the wrong tree. Instead, focus on asking them to diagnose problems in your process and recommend IT-based solutions to help improve your indicators. By working together and setting clear expectations, you and your consultant can achieve great results and make real progress toward your business goals.

To help your IT consultant help you, you will need the right tools to monitor your whole IT architecture. AINSYS integration framework syncs data between every tool and platform your IT team employs, helping you get an accurate picture of your software. By implementing AINSYS tools, any IT consultant can ensure they make the right decisions for your organization and keep up with the ever-changing technology landscape.