Forget Strategy: Focus IT on Your Operating Model

MIT CISR

Stephanie Woener reads this MIT CISR research briefing from December 2005, which was authored by Jeanne Ross. See the text version and related content at https://cisr.mit.edu/publication/2005_12_3C_OperatingModels. Abstract: Most companies try to maximize value from IT investments by aligning IT and IT-enabled business processes with business strategy. But strategy rarely offers sufficiently clear direction for development of stable IT and business process capabilities. To make IT a proactive rather than reactive force in creating business value, companies should define an operating model. An operating model specifies the necessary level of business process integration and standardization for the company, defining critical IT and business process capabilities. This briefing explores how a company’s operating model guides IT investment and enhances business agility.