Organisations are increasingly outsourcing IT, compelled by the logic of economies of scale for commodity ICT, and the ability to access specialist and scarce skills. Many are still on the journey of building the organisational capability required to be effective at managing others to achieve the necessary outcomes, rather than doing it themselves.
Expectations and demands from ICT customers continue to increase, heightened by the current economic conditions, wanting more, better and cheaper ICT, and the ability to change priorities and needs at a moment's notice so they can meet their customer needs. At the enterprise level, ICT is expected to be an agent of change, yet also an agent of cost reduction and operational efficiencies. CIOs feeling the pressure find themselves perversely with less direct control to deliver their agenda, with ICT resources owned by suppliers, fixed into supply contracts which limited flexibility, and with requirements, performance and demand decisions owned by the business.
So how do you respond and bridge the gap between customers and suppliers to deliver the ICT the organisation needs when you don't control all the levers?
At PA Consulting Group, we believe that CIO's can best support their organisation aims by effectively architecting and driving the ICT demand-to-supply chain, reaching from where the initial idea that will drive IT needs arises in the business, through to the provision of ICT by down-stream suppliers. CIO's can learn from other industry sectors where supply chain management is arguably more mature.
Our demand-supply model provides a framework for understanding the challenges that many ICT organisations are facing, and how to best position themselves with their internal customers and suppliers.
To speak to an expert at PA about ICT demand-to-supply chain, please contact us now.