Global Automotive Manufacturer - IT Strategy, IT Operating Model and Strategic IT Sourcing
Following a carve-out and prior to a future IPO, development of a new technology-oriented IT strategy and operating model with a major focus on optimized global IT sourcing.
The global automotive manufacturer is a market leader with high-quality and best-in-class innovation products in its segments. The business depends on overall economic cycles and needs to adapt to boom and recession phases quickly.
After a carve-out, the corporate IT has to realign to a new enterprise structure and corporate strategy fully. Reducing overall IT costs had been the primary strategic target in the past. Now it has switched to significantly increasing the IT capability of enabling the business and allowing for business agility while maintaining cost-effectiveness.
Challenges and opportunities in IT globalization, re-architecting IT infrastructure in all crucial elements, IT security, validating IT sourcing options, adapting the IT operating model, and major transformation planning are ahead.
The goal of the project was to develop a fundamentally new technology-oriented IT strategy and operating model, considering the following key points in particular:
- Align with the new corporate business strategy set after the carve-out
- 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
- Plan rearchitecting all crucial IT infrastructure elements at a global level in conjunction with strategic sourcing options
- Consider the identified challenges and opportunities in IT globalization, IT security, adapting the IT operating model, and major transformation planning
The following approach has been taken to develop a fundamentally new technology-oriented IT strategy and operating model:
- Interviews with selected business executives, board members, and IT executives
- Analysis of the existing IT strategies and key documents, as well as a briefing workshop series with the IT executives
- Foundation of an international core team to:
- Understand current challenges, strategic objectives, and technological possibilities
- Develop an overall IT strategy including target pictures for all crucial IT infrastructure elements at a global level
- Develop options and necessities for the target IT operating model
- Set guidelines and opportunities for strategic sourcing of all or particular aspects of the IT infrastructure
- Derive a plan for the major IT transformation ahead
The project length for developing the IT strategy and the (high-level) target IT operating model was approximately 18 months.