Defining Your Operating Model: Make IT a Strategic Asset by Developing a Clear Vision of the Role of IT

Many firms have not addressed the key question of how they want to profit and grow, and how IT can help create their platform. IT savvy firms, on the other hand, clarify what they are trying to do with IT by defining an operating model. In this chapter, Weil and Ross look at IT systems as tools for integration and standardization of business processes rather than an end solution. Using examples of companies like P&G, PepsiAmericas, and ING Direct, they categorize four operating models which can help you decipher how much or how little integration and standardization is needed to run your business smoothly. They also explain how multiple operating systems can work within various areas of your company to meet the needs of different departments. This chapter was originally published as chapter 2 of "IT Savvy: What Top Executives Must Know to Go from Pain to Gain."