European Group Construction - IT Strategy, IT Operating Model and CIO Change

The company is well-positioned in the European market and offers specialized construction services, which differentiates the firm from the mass market in several areas. The corporate strategy foresees a push in M&A activities, driving operational excellence and digital transformation.

For IT, this represents a transformational change. Having been optimized towards overall IT costs, it now has to build capabilities and skills to support the updated business strategy while reducing technical debt and maintaining cost-effectiveness.

Challenges and opportunities in integrating European subsidiaries, establishing a strong IT governance, strengthening IT staff and leadership, performing a data center transformation, making decisions on the remaining lifespan of their core systems, IT security, and the broadening of IoT / vehicle IT initiatives are ahead.

The goal of the project was to develop a new future-oriented IT strategy and IT operating model, considering the following key points in particular:

• Align with the overall corporate strategy
• Reflect the needs and priorities of the business functions
• 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
• Derive scenarios to strengthen IT staff and leadership
• Consider the identified challenges and opportunities in integrating European subsidiaries, establishing a strong IT governance, strengthening IT staff and leadership, performing a data center transformation, making decisions on the remaining lifespan of their core systems, IT security, and the broadening of IoT / vehicle IT initiatives

The following approach has been taken to develop a new future-oriented IT strategy and IT operating model:

• Settings session(s) with the core team for developing and driving the new IT strategy
• Interviews with the board, IT leadership, IT management, and representatives of business functions
• Analysis of the existing IT strategy and key documents, as well as a briefing workshop series with the IT executives
• Design of an architectural target picture, depicting key elements and formulating vision, requirements, and the road to reach the target state
• Development of an updated capabilities map and cornerstones for the IT operating model
• Develop a strategic roadmap to implement the IT strategy and the corresponding IT operating model
• Finalization and board sign-off of the formal IT strategy and target IT operating model

The project length for developing a new future-oriented IT strategy and IT operating model was approximately 10 months.