IT schizophrenia

Between the Illusion of Progress and Digital Stagnation

Why We Need to Talk About IT Schizophrenia Now!

I am Dr. Claus Michael Sattler, Interim CIO and an expert in IT infrastructure management, OT integration/Industry 4.0, data analytics, and data-driven management decisions. As a consultant, keynote speaker, supervisory board member, author, and university lecturer, I encounter the same paradox every day: Every business process depends on IT—and yet IT is treated as if it were a bothersome anachronism.

What I’ve observed in countless client engagements, presentations, and workshops is not the exception, but the rule. This inconsistency—this “IT schizophrenia”—defines the day-to-day operations of German companies. The consequences are serious: a stagnation of innovation, competitive disadvantages—and a massive threat to future viability.

The Schizophrenic Attitude: IT as Both the Backbone and the Neglected Child

The Ubiquity of IT

Nothing works without IT these days. Production processes, logistics, customer communication, marketing, sales, HR, finance, and controlling—every single business process is digitally integrated. Anyone who still believes that “IT” is just another department among many is mentally stuck in the era of typewriters, fax machines, and the break room.

The Myth of the Cost Center

Despite this reality, many decision-makers still view IT as a necessary evil—a mere cost center that must be minimized, “outsourced,” or ignored. HR, Finance, and Controlling are regarded as strategic cross-functional areas that are an integral part of corporate management. IT, on the other hand, is surprisingly often left out of the picture, cut to the bone, or offloaded to outsourcing. Welcome to IT schizophrenia!

Numbers, Data, Facts: The Harsh Reality in 2025

  • IT budgets are stagnating: While companies are happy to invest in new locations or marketing, their IT budgets usually remain at the same level as they were ten years ago. Increasing demands are being ignored, and outdated systems and a lack of updates are jeopardizing operational security.
  • Skills Shortage: IT experts are in short supply, and job openings remain unfilled for months or even years. Nevertheless, many board members lack the courage to make consistent investments in employee retention or professional development.
  • Cybersecurity as a side note: Real-world security incidents make headlines, but there is often a lack of clear understanding of the actual threat landscape and the corresponding protective measures—that, too, is a form of IT schizophrenia.
  • Digitalization projects are stalling: Many digitalization initiatives fail or languish due to a lack of basic IT skills, change management, and a strategic approach.

The Causes: Why Is IT Schizophrenia So Persistent?

Old Ways of Thinking in New Times

Many of the executives leading companies today were shaped by the 1990s. Back then, IT was expensive, difficult to manage, and perceived as far removed from the core business. These ways of thinking continue to have an impact today—a dangerous misjudgment, because digitalization has changed the entire playing field.

Unclear Strategic Significance

Very few companies define a clear, IT-driven corporate strategy. Often, IT remains confined to implementation rather than playing a role as a “business enabler” at the executive level. The consequences are predictable:

  • IT projects do not have a truly mandated nature.
  • The IT department must not think beyond its own area of responsibility.
  • Innovative ideas fizzle out in a siloed organization.

Between Desire and Reality

It’s a paradox: “Digitalization” ranks high on the list in almost every strategy document. But when it comes down to it—staff, budget, relevance—cost-cutting considerations take precedence. IT is viewed as a support function rather than the backbone of the business model.

IT as a Cross-Functional Role: Much More Than Just Technology

Definition: What is a cross-sectional function?

A cross-functional role assumes responsibility “across all lines”—it connects departments and ensures standardization, efficiency, and innovation. Classic cross-functional roles include HR, Finance, and Controlling.

IT fulfills exactly this role: It enables and manages business processes, and ensures data security, transparency, efficiency, and growth. In short: Without IT, there can be no modern business management.

Cross-functional role

Typical Tasks

Significance for the Company

HR

Recruiting, Employee Development, Labor Law

Employee Retention, Corporate Culture

Finance

Accounting, Planning, Budgeting

Liquidity, Management

Management Accounting

Analysis, Reporting, Control Measures

Transparency, Efficiency

IT

Digital Processes, Infrastructure, Innovation, Security

Competitiveness, Future

Typical Symptoms of Corporate IT Schizophrenia

The “Dual Reality” in Organizations

  • Digitalization in Public Relations – Analog Processes in Everyday Life
  • Proclaiming agility while maintaining legacy systems
  • Preaching the need for innovation, but continuing to use off-the-shelf software indefinitely
  • Identify IT as a driver of innovation, but do not delegate either authority or resources

"Positive and Negative Symptoms" of IT Schizophrenia

Based on medical categories:

  • Positive symptoms: Action without substance, hasty technological shifts, mass announcements without sustainable implementation, investments in short-term trends
  • Negative symptoms: IT roadblocks, cumbersome approval processes, denial of resources, outdated infrastructure, lack of training initiatives

Consequences of IT Schizophrenia

Loss of Efficiency and Stagnation in Innovation

A stagnant IT department puts all business units at risk: processes slow down, errors creep in, and new business models fall by the wayside. Anyone who slows down IT slows down the entire company.

Increased Risk of Cyberattacks

Outdated systems, insecure interfaces, and a lack of awareness programs—all of these factors leave the door wide open to cybercrime. The financial losses have long since reached the billions and often threaten the very existence of companies.

Lack of Competitiveness

While international competitors are investing heavily in AI, IoT, the cloud, data analytics, and automation, many German companies remain stuck in IT minimalism. The result: the gap between them and the world’s leaders is widening.

The Solution: A Radical Reassessment of IT

Board members and CEOs must make IT a top priority

IT must be an integral part of corporate strategy—not a “project” or a “work in progress,” but rather the operational and strategic enabler for all initiatives. This means: CIOs at the executive board level, true budgetary autonomy, and a mandate for innovation and transformation.

Moving Away from the Cost Center Paradigm

IT investments are “business enablement investments”; they support growth, security, and market positioning, not just day-to-day operations. Cutting back on IT is like cutting back on your own foundation.

Moving Away from Silo Thinking

IT must collaborate with business units as equals and see itself as an active sparring partner for senior management, production, and sales. Only in this way can everyone in the company learn to think strategically and drive innovation together.

Breaking Free from Old Ways of Thinking

Smart leadership means starting with the workforce: professional development, employer branding for IT specialists, and clear career paths in the IT field. Companies that fail to offer an attractive environment for “digital natives” today will fall behind tomorrow.

Real-World Examples: When IT Schizophrenia Slows Down Business

Case 1: Innovation on PowerPoint, Stagnation in the Basement

A medium-sized manufacturing company advertises itself as a “Smart Factory”—yet its machines run on Windows XP, and data analysis is done using Excel, paper, and a red pen. While the IT department is praised, it is not being modernized. The result: massive downtime, disrupted supply chains, and data loss.

Case 2: Cyberattacks as a Wake-Up Call

An international service company ignores warnings from its IT team about system vulnerabilities. A phishing attack brings production to a standstill for days at a time. Only after losses in the six-figure range does IT security become a top priority. A classic case of IT schizophrenia: reaction instead of prevention.

The Role of IT in 2025: New Technologies, New Challenges

  • AI and Data Analytics: They are transforming markets, but they require a robust infrastructure as well as coordinated processes and expertise.
  • Cloud and IT Security: Without a consistent cloud strategy and integrated security, every step toward digital transformation remains piecemeal.
  • OT Integration & Industry 4.0: Production and IT are converging—the separation between them is a relic of the past. Modern value creation is no longer conceivable without this integration.
  • Skill Development and Change Management: People are the key to success. Continuing education, transparency, and a culture that embraces mistakes are the key.

My plea: Let's leave IT schizophrenia behind and embrace the future!

Executives, here is your mission: Make IT the heart of your value creation! Those who continue to tolerate IT schizophrenia will squander their innovative strength, efficiency, and competitiveness. Digital transformation is not an option—it is essential for survival.

  • IT is not merely an extension of the production line, but rather the central nervous system for innovation and growth.
  • Anyone who rethinks processes, products, and business models must view IT as a driving force on an equal footing.
  • Enough with empty promises: What counts are actions—budgets, mandates, and authority!

IT schizophrenia won't go away on its own—it will only end if we take action. And we need to do it now.

Dr. Claus Michael Sattler

Or, to put it in the language of the *Bild* newspaper:

“Anyone who still thinks they can manage without modern IT might as well write zeros by hand on their bank statement—and file the last analog lawsuit with the bankruptcy trustee.”

Would you like to learn more or find out how your company can break free from IT schizophrenia? I’m the person to contact when you need IT to make a difference.

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