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Governance for enterprise transformation

Business units have accepted the importance of IT in their domains but they are still not very sure if the central IT function is meeting their needs. Some business units in large enterprises even have in-house IT functions to support them. However, it is not very clear whether in-house IT divisions too are clued into the needs of the business users. Pain points of business users include complicated and costly governance mechanisms, lack of transparency on IT services, lack of accountability in cost accountability and low levels of synergies in IT services across business units.

The typical scenario today is characterized by a

1. Need for IT services across the enterprise to leverage on scale and scope economies
2. Deficiency in accountability for IT costs and
3. Plethora of obfuscating IT governance mechanisms that do not meet enterprise goals

What is required is a commitment from both the IT function and business units through a realistic assessment of demand and delivery of IT application services. The assessment of demand and delivery often calls for setting up dedicated demand and supply centers with focused cost accountability deliverables. Once there is a clear bifurcation of demand and supply centers it is essential to establish governance mechanisms that define their roles and responsibilities.

Balancing Expectations

The reorganization into demand and supply centers can be a tricky since traditionally senior executives in business units and IT function have different perspectives that are often not in sync with one another. While the business unit wants value from IT, the IT function more often than not, focuses on reducing cost of IT services.
For Enterprises to establish a clear business case for the demand and supply centers and their objectives. Define specific roles and responsibilities charting and reporting structures and communicated before attempting the governance. Please contact us to know more about adoption of  governance framework and to help then transform customer experiences.