Discovering The Right IT

The right IT is the IT that is consistent with all perspectives of the enterprise's business models and delivers maximum value to the enterprise and its customers. In assessing IT's fit to the business, it helps to first frame what IT does in terms of the business model perspectives, working from the customer value proposition on down. This description is the IT model.

A gap between the IT and business models might be a potential that is not being realized in a specific perspective of the business models, not just an obvious current weakness. Also, inconsistencies in the IT model are sometimes a result of inconsistencies in the business models. For example, unacceptably high IT cost structures might result from maintaining multiple versions of applications that perform essentially the same functions in different parts of the business. With the IT model defined and checked for consistency against the business models, the final step is to implement it.

Evolving With The Business Model

Implementation of the right IT model may mean extensive changes for the IT organization. When IT doesn't match the business models or effectively maximize value, something must change. Analyzing competitors in terms of all ten perspectives of their business models reveals the extent of change required throughout the value chain to respond to a competitive move and, ultimately, the IT needed to support the change.

By using business models systematically to understand the inherent strengths and challenges in its way of doing business, an enterprise can find new ways to maximize its effectiveness. And finally, by using business models in the same way, CIOs can find and demonstrate the right IT.