International Automotive Dealer Network - IT Strategy and IT Operating Model

The automotive sector is undergoing dramatic changes - naming a few: Digital offerings, electrification, and the software-driven car, as well as continuously evolving customer behavior. Automotive Dealer Networks will have to adapt significantly. While the IT executives, the central IT organization, and the board have invested a lot of effort in the last years, the IT strategy and its corresponding IT operating model have become outdated.

In the strategy process, the significant changes in the corporate strategy, newly thought business processes, the central element of a well-performing overall DMS (dealer management system), and the push towards utilizing agile methods at scale have to be reflected.

The target IT operating model should find updated answers on the right balance between centralization and decentralization and how decision-making on essential topics will be performed in the future.

The goal of the project was to develop an up-to-date IT strategy as well as an aligned IT target operating model, considering the following key points in particular:

• Align with the updated corporate strategy and new market dynamics
• 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
• Evaluate the scaling of agile methods and new approaches for IT governance
• Investigate the potential of an adopted mix between centralized and decentralized elements in the IT organization

The following approach has been taken to develop the new IT strategy and a corresponding target IT operating model:

• Interviews with the CIO and selected IT executives
• 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
• Workshop series on scenarios for target IT operating model
• Alignment with the divisions and the board on the degree of IT centralization and decision-taking
• Finalization of the formal IT strategy and high-level target picture of the envisioned IT operating model

The project length for developing the IT strategy and the (high-level) target IT operating model was approximately 4 months.