100%(27)27 out of 27 people found this document helpful
This preview shows page 5 - 7 out of 8 pages.
maximize problem solving. Therefore, IT governance and sourcing needed to not only be responsive to more localized needs, it also needed to be efficient in applying lessons learned from a solution in one business unit or region to problems faced in other units or regions. In addition, the transformation economy would demand more coordination across the value chain - including external resources. External service providerswere already viewed as key players in delivering IT solutions, but aligning incentives between Philips and itsbusiness partners would be even more critical in the future as competitive advantage would no longer be reserved to company-versus-company but business network-versus-business network. How is the IT Operating Model positioning Philips to be successful in the "transformation economy" where collaboration across business partners, customers, and local communities becomes even more critical? IT governance internally seemed to be achieving the goals expected by senior leaders. How might IT governance and sourcing need to change at Philips in order to better orchestrate the prioritization, design, delivery, and support of IT-enabled transformation going forward?Olive reflected while looking ahead, “Business strategies are no longer 10-year outlooks; they are comprisedof much shorter, overlapping cycles based on rapidly changing trends and determined by tremendous real-time data. Sales metrics once assessed annually, then quarterly, then monthly, then weekly are now hourly. This reduction also applies to geographic data. We thrive on data, bring it on! We’re able to avoid ‘objects’ coming at us in the marketplace and also capitalize on innovation for continuous improvements in business performance that ultimately allow us to expand reach and improve the health and well-being of people globally.”Case Questions: 1.Describe the strategic business issues Philips faced due to its IT governance and sourcingapproaches prior to Accelerate implementation. 2.Describe the new IT Governance approach since Accelerate implementation. Include both project management and portfolio management decision-making and accountability. 1.Explain how the new IT sourcing approach better positions Philips to achieve improvements in operational excellence and product leadership. Created in support of Information Management learning objectives (mad, Fall 2013)Page 5of 8