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 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. Several events could trigger the need for an operating model transformation:
- A recent acquisition could lead to an operating model transformation as new processes and governances are formed to oversee the new team structure. Savings and cost reductions can be achieved by consolidating the strengths of each organization and reducing duplicities.
- The 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 with each other
- The decision to centralize or de-centralize parts of an operation (eg. end-user support)
- The decision to outsource or incorporate outsourcing into the operating model
For the new-age business-driven IT leader, an operating model transformation is the chance to revolutionize the organization and better position it to improve efficiency and the capacity to identify new opportunities, create business value, and generate revenue and profit.
There may be events that call for a change in the way teams are structured, how teams are overseen and governed, or significantly impacts the way teams interact, and your organization may benefit from a dedicated operating model transformation program.
Our philosophy behind our approach
To successfully deliver an operating and organizational model transformation, Wavestone US consultants use a four-pronged approach:
- Leadership interviews to discover operating model requirements
- Involvement of business and applications leaders in early interviews
- No predetermined solutions (but many options)
- Extensive data collection and data analysis
- Equal effort understanding the strengths and uniqueness of the organization
- All recommendations supported by underlying facts and rationale and by benchmarks data from Wavestone (cost savings, TOM ratios…)
- Development of rigorous, financially-driven business case
- A thorough assessment of all required investments and resultant operating costs
- All recommendations and financial analysis packaged to support Senior Management approval decisions
- Senior leadership buy-in will be critical during the design phase
- Change management implications will be considered at every stage of our approach
- The implementation plan will have strong internal communications focus