Consulting IT governance July 2007
It is almost an understatement to say that we live in an era of radical change, characterized by the rise of abundant information and widespread echnologies. Changes can be found in the products and services we buy, in distribution channels we use, in payment systems we employ, and so on and so forth. Also, the way, in which companies do business, the ways in which they are organized and managed have all changed beyond recognition. Atos Consulting identifies this as significant business transformation.
The traditional organization model is characterized by a familiar pyramid structure, a functional set-up, a hierarchical control and has hard organizational boundaries. This model is practically gone. The long-established integrated ‘pyramids’ have demonstrated to be too cumbersome and rigid to respond quickly and adequately in times of radical and enduring external change.
Organizations are increasingly working together in networked cooperation and in virtual alliances. Many strategic and long term relations, both formal and informal, are thus established. Often, IT has a critical role in making such relations successful. This implies new challenges for IT governance, since the achievement of enduring successful results from cooperating organizations – defined as Extended Enterprises – is not guaranteed on the narrow basis of traditional models and best practices of IT governance. A fresh approach is needed and a paradigm shift seems inevitable.
In short, we will have to find the answer to a fundamental new question:
“What does IT governance look like within an Extended Enterprise?”
A complex and to a large extent unknown domain is waiting to be explored. This paper will have a look into the problem background. It will then present the results from the research conducted by Atos Consulting, give insight into the findings and finally provide you with practical recommendations.
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