IT Operating Model

Transformation
Major FTSE 250 Retailer

About Project

Major IT operating model and org design shake-up for retailer needing IT to step up

Live Project
Category
Transformation
Client
Major FTSE 250 Retailer

The Challenge

The retailer’s IT function was considered to be performing poorly, but was essential to driving forward a major business transformation programme that heavily relied on IT changes. A five fold increase in IT project demand was forecast. IT needed to raise its game, whilst reducing its cost base with the business under increasing cost pressures.

What We Did

Working with the new CIO, we defined the vision and direction for the Digital and IT function, laying the foundations for a gradual shift to an agile product team setup over a series of transitions.  We then restructured the IT leadership team to ensure the right balance and experience at the top, before working with this team to restructure the entirety of the function. We focused the leadership team on where improvement was needed. This included where there were opportunities to reduce costs (to help pay for the transformation), such as where there were excessive management layers or where internal IT teams were duplicating work that external suppliers were contracted (and paid) for. We then supported the final detailed operating model design, overseeing this through to implementation.

The Outcome

The IT operating model was revised twice over 9 months. The first iteration achieved the right balance of focus to meet the five fold increase in demand.The second iteration reduced overall costs by 20-25% whilst maintain the level of service.