International Manufacturing Group - IT Strategy and IT Operating Model

The manufacturing group runs its divisions highly independently to allow higher customer intimacy and faster time-to-market. While the IT executives and the responsible board member invested a lot of effort several years ago, the IT strategy has become outdated. 

Although the business strategy favors centralization at the division level, it is in question whether a stronger centralization of the corporate IT at the conglomerate level would benefit the overall enterprise and the business divisions.

Challenges and opportunities in IT security, transformation(s) to SAP S/4HANA, a potential establishment of IT competence center(s), the introduction of agile methods, and the broadening of industry 4.0 initiatives are ahead.

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 business strategies of the divisions
• 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
• Investigate the potential of a potential IT centralization at the enterprise level, including developing a detailed target picture
• Consider the identified challenges and opportunities in IT security, transformation(s) to SAP S/4HANA, a potential establishment of IT competence center(s), the introduction of agile methods, and the broadening of industry 4.0 initiatives

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

• Interviews with selected business executives, board members, and the 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 the options and cornerstones of the envisioned target IT operating model
• Alignment with the board and detailing of the target picture for the IT operating model
• Development of an according IT governance model
• 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 6 months.