Transformation Case Study: Information Technology (IT) Transformation
Challenge
- $5 billion manufacturing company globalizing its business units but supporting IT organization remained geographically focused and too expensive
- While infrastructure largely standard, the prioritization and delivery of applications critical to business success was executed by geography
- Company wanted to implement global work processes
Outcome Achieved
- IT able to implement common processes for delivery and support.
- Generated immediate overhead (IT) savings of close to $1 million annually.
- Subsequent ERP implementation resulted in retirement of >500 “legacy” applications with a savings of over $25 million/year
- Overall IT cost reduction equaled 1.5% of sales
Engagement
- A single, global IT organization designed and implemented.
- Major personnel shifts occurred including the elimination of a regional VP IT position
- ERP successfully implemented over a six-year period.
- New IT governance and operating model shifted focus from cost to value for IT projects
Why the Solution Enterprises Team?
- Managing Principal participated as a senior IT leader.
- Created roles and work processes to implement the new global organization structure.
- Challenges of diverse leadership styles, approaches and “silos” addressed successfully