International Automotive Tier 1 Supplier - IT Strategy, IT Operating Model and CIO Change
While an interim CIO was in place, development of a new future-oriented IT strategy and IT operating model to align with the new corporate strategy and the approaching permanent CIO.
The automotive tier 1 supplier had shown a strong track record in the past - developing and producing complex and "smart-enabled" components required for a broad set of automotive categories and relevant for multiple vendors. Over the years, the product portfolio has been enriched, production sites have opened on several continents, and production has been significantly automated and scaled.
While being economically very successful, several changes in strategy, rotations of board members, M&A activities, and tight KPI-based management put significant pressure on the IT function of the enterprise. Further symptoms of the past are having a higher than average rotation frequency on the CIO position and increased staff turnover of IT employees.
Challenges and opportunities in IT governance, IT leadership, a transformation to SAP S/4HANA, and the broadening of industry 4.0 initiatives are ahead.
The goal of the project was to develop a new future-oriented IT strategy and IT operating model with the interim CIO, considering the following key points in particular:
- Align with the updated business strategy
- Understand the strengths and weaknesses of the current IT landscape, the IT operating model as well as the context of architecture, IT sourcing, the project portfolio, and business / IT alignment
- Prepare for the new permanent CIO, having a (draft) target IT operating model ready
- Consider the identified challenges and opportunities in IT governance, IT leadership, a transformation to SAP S/4HANA, and the broadening of industry 4.0 initiatives
The following approach has been taken to develop a new future-oriented IT strategy and IT operating model with the interim CIO:
- Settings session(s) with the interim CIO
- Analysis of the existing IT strategy and key documents, as well as a briefing workshop series with the IT executives
- Development of an updated IT vision and guiding principles
- Development of an updated capabilities map and cornerstones for the IT operating model
- Alignment with the board and detailing of the target picture for the IT operating model
- Finalization of the formal IT strategy and target IT operating model with the new permanent CIO
The project length for developing a new future-oriented IT strategy and IT operating model, as well as performing the finalization with the new CIO, was approximately 4 months.