Public Holding Conglomerate - IT Strategy and IT Operating Model

The public holding runs its associated companies highly independently to allow specialization, cost efficiency, and tailored services for specific groups of customers. At the holding level, capabilities to govern IT are not established yet.

An IT strategy project has been triggered to better understand the potential of IT within the group of companies and derive conclusions at the holding level.

Challenges and opportunities in understanding the different maturity levels of the corporate ITs, identifying synergy potential(s), deriving a proper mix of centralization and decentralization, and defining a suitable IT operating model for the holding level are ahead.

The goal of the project was to develop a new IT strategy and operating model for the overall conglomerate, considering the following key points in particular:

• Align with the holding strategy and the individual companies' strategies
• For each firm within the conglomerate: 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
• Investigate the potential of an eventual IT centralization at the holding level, including developing a target picture
• Consider the identified challenges and opportunities in understanding the different maturity levels of the corporate ITs, identifying synergy potential(s), deriving a proper mix of centralization and decentralization, and defining a suitable IT operating model for the holding level

The following approach has been taken to develop a new IT strategy and operating model for the overall conglomerate:

• Interviews with selected holding executives and the IT executives in the conglomerate's firms
• For each firm: Analysis of the existing IT strategy and key documents, as well as a briefing workshop series with the IT executives
• Development of an overall picture of the as-is situation, including a SWOT analysis, coverage of special topics, and recommendations
• Workshop series on the options and cornerstones of the envisioned target IT operating model with a strong focus on IT governance
• Alignment with the board and detailing of the target picture for the IT operating model
• Finalization of the formal IT strategy and high-level target picture of the envisioned IT operating model at the holding level

The project length for developing a new IT strategy and operating model for the overall conglomerate was approximately 9 months.