What is the best way to organize each value stream? This section describes the critical IT value streams for the 21st century, and how best to organize them, according to our research. Note also that each section includes brief comments about the number of companies in our study that chose each organizing option.
Value innovation refer to the strategic analysis of business opportunities and ways in which IT can be used to strengthen business competencies, customer relationships and business partner networks. The goal of these activities is to ensure that all IT applications have a strategic focus and that IT is properly aligned with the company's strategic business efforts.
|
Organizing Tactic |
Description |
Comments |
|
Centralized |
The corporate IT unit is responsible for identifying strategic IT applications |
Very rarely used in contemporary firms. |
|
Centralized (mirror image role) |
Specific individuals within the corporate IT unit are dedicated as account managers for business units or business processes. They develop the specialized knowledge and strong relationships with their business clients and are responsible for stimulating value innovation through IT. |
Very rarely used in contemporary firms. |
|
Centralized (mirror image units) |
Small teams of IT professionals within the corporate IT unit are dedicated to specific business units, processes, business capabilities, or geographical units. These units develop specialized knowledge and focus on effective value innovation through IT for their assigned business unit. |
About 20% of the firms in our study used this option |
|
Decentralized |
Divisional IT units manage value innovation activities. |
About 20% of the firms in our study used this approach |
|
Federal |
Value innovation activities are managed both by corporate IT and divisional IT |
Prevalent approach in the firms in our study |
|
Independent IT subsidiary |
A unit of the independent IT subsidiary focuses on value innovation |
Rarely used approach |
