Enterprise IT vs Product IT - Factors Influencing Cooperation and Integration
We believe that IT is permeating the business, creeping into all functions and activities. Firms are increasingly embedding intelligence in their products and services, seeking to add value beyond the pure physical product. They are using business intelligence and simulation techniques to create and price new products and services. They are also offering their people and their customers ever greater capabilities through the Internet and mobile technology.
But we also find that the traditional enterprise IT organization is not always participating fully in these new developments, which are often in the hands of separate product-related IT development organizations. Contributing to IT’s isolation is the increasing use of shared services (SS) as an organizational structure. Shared services organization has the effect of distancing IT from the business and making it harder to participate in new areas. Thus, shared services can become a ‘trap’ for enterprise IT.