The IT operating model is continually evolving as new technologies, tools, and ways of working emerge across industries. More and more business leaders recognize the game-changing power of IT, which means IT has to step up in its efforts to support the enterprise as it grows and matures and meet the fast-changing needs of the business.
An IT operating model transformation is when the current structure, governance, or tools of an organization undergo a significant change for an expected benefit, such as savings from reduced costs, increases in efficiency, restructuring of teams for better alignment, and so on. For the new-age, business-driven IT leader, an IT operating model transformation is also a chance to revolutionize the organization and put it in a better position to identify new opportunities, create business value, and generate revenue and profit.
IT Operating Model
There may be events that call for a change in the way teams are structured, overseen, or governed, or events that significantly impact the way teams interact. If so, your organization may benefit from a dedicated operating model transformation program. Events that might trigger the need for an IT operating model transformation include:
/ A recent acquisition where new processes and governances might form to oversee a new team structure; savings and cost reductions can be achieved by launching a transformation to consolidate the strengths of each organization and reduce duplicities
/ A strategic decision to adopt new technologies (agile, cloud, etc.) that would revolutionize the way employees operate; integrating these technologies requires a complete transformation for how teams are structured and interact
/ A decision to centralize or decentralize parts of an operation (i.e., end user support)
/ A move to outsource or incorporate outsourcing into the operating model
To successfully deliver an operating and organizational model transformation, Wavestone consultants use a four-pronged approach:
/ Conduct leadership interviews to discover operating model requirements
/ Involve business and applications leaders in early interviews
/ Offer zero predetermined solutions
/ Perform extensive data collection and analysis
/ Spend equal time and effort understanding the strengths and uniqueness of the organization
/ Offer recommendations supported by underlying facts, rationale, and benchmarking data from Wavestone (cost savings, TOM ratios, etc.)
/ Establish a rigorous, financially-driven business case
/ Complete a thorough assessment of required investments and related operating costs
/ Offer recommendations and financial analysis packaged to support senior management approval decisions
/ Senior leadership buy-in is critical during the design phase
/ Change management implications will be considered at every stage of our approach
/ The implementation plan will have a strong internal communication focus
The Four Pillars of Successful Digital Transformation
Overcome key organizational conflicts and keep your transformation agenda in check.
Featured Expert
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Doug Smith
Managing Director
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Doug has more than 20 years of experience as an IT leader and strategist. Before joining Wavestone US, Doug built and led the Enterprise Architecture function for McKesson, a Fortune 15 healthcare company.
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Doug has more than 20 years of experience as an IT leader and strategist. Before joining Wavestone US, Doug built and led the Enterprise Architecture function for McKesson, a Fortune 15 healthcare company.
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