IT Consulting

Core Idea of IT Consulting

Business Problem IT / Technology

[Based on business
strategy] Capabilities

Analysis Features
IT for Business
• Cost reduction

• Process simplification; Business Process Re-engineering

• Expansion of business model → increase richness & reach

• Strategic sourcing & Innovation

• IT helps collaborate with customers, suppliers, distributors & other

stakeholders
Business and IT

• More and more convergence → most businesses can’t run without

proper & strategic use of IT

• Where does the business domain stop and where does the IT
solution identification & implementation start?
Business and IT

• Degree of IT usage varies BUT IT usually plays a role in implementing

business strategy / consultant recommendations

• Process transformation / Business Process Re-engineering →

Enterprise IT systems (ERP, CRM)
Business and IT Consulting

• In isolation, IT consulting will fail → needs to address issues /

concerns of business

• Drive the implementation as business projects rather than IT projects

Two Levels of Engagement
1. CEO / senior management → identify strategic issues → do these
issues need technology intervention?

2. Operational managers → re-design company processes & change

activities → develop & implement IT strategy roadmap → also keep
future strategies in mind
A Simple Model of IT Consulting
• WHY? → Business strategy

• WHAT? → Information systems strategy

• WHICH? → Information technology

• HOW? → Information management

WHY should we spend scarce resources on IT?
• Justification comes from business strategy
• Identify suitable use cases through CSF analysis & value chain analysis

Typical consulting assignments

• How can I use IT to obtain a competitive advantage?
• How should I react to the fact that my competitor has adopted and
implemented a certain IT?
• Due to recent IT advancements, do I need to revisit my business strategy?
WHAT IT applications shall we build?
• Information Systems Strategy  Business Strategy
• Developing a portfolio of IT applications
• Support (most desktop applications, not vital to business)
• Mission-critical (call center support, huge impact if ceases to work)
• Strategic (BI, critical for future business outcomes)
• Experimental (Blockchain, huge potential)

Typical assignments
• Development of IS strategy / Application portfolio plan
• Screening of potential IT applications for business value / financial justification
• Risk assessment of future IT applications
WHICH technology / vendor / HW & SW?
• Most technical aspect of IT consulting
• But, must not forget the business needs being addressed

• Blend technical & business expertise to provide advice

Typical assignments
• Development of IS architecture
• Comparison of competing software products
• Choice of preferred vendors
HOW can IT implementation be managed?
• Information Management

Typical assignments
• Audit of IT management practices & processes
• Benchmarking & standard setting for IT function
• Project planning & management
• Provide specialized expertise (e.g., database design)
• Systems integration & compatibility
• Training clients to develop & maintain functional IT literacy
Four Core IT Processes
• Help clients realize the full potential of their IT investments
• Many IT initiatives fail, or get stalled or cancelled
• Expected benefits not realized → Senior management gets dissatisfied

• Advise them regarding management of:

• Business alignment
• Complexity management
• Value delivery
• Outsourcing & Offshoring
Business Alignment
• IT investments must be aligned with firm’s business strategy
• Business strategy must drive direction & priorities for IT investments
• IT must enable innovative business strategies & capabilities

IT Strategy (driven by business)

• Technology; Application; Skills & capabilities; Benefits

IT-enabled business strategy

• New markets; New channels; Process innovation; Breakthrough initiatives
Complexity Management
• IT applications used in multiple organizational contexts → IT
environments highly complex → resources wasted on operating
supporting complex IT environment → Less focus on value-creating
initiatives

• Complexity management → deliver value in complex environment

while simultaneously identifying & executing actions to reduce
complexity
Value Delivery
• Ensure realization of maximum business value from IT investments
Technical activities
• Definition of requirements
• Selection of system / vendor
• Technology procurement
• System configuration / customization
• System rollout
Business change activities
• Process redesign
• Organization design
• Incentive realignment
• Training
Challenges of IT Consulting
• Working on multiple assignments in diverse domains

• Changing requirements & demands of clients

• Toll on work-life balance → frequent travel, long work hours &

pressure to be always prepared

• Trap of profitability & growth → must maintain ethics,

professionalism & quality → Don’t focus only on billing
COTS (Commercial Off The Shelf) Solutions
• Packaged solutions which are then adapted to satisfy needs of
purchasing organization → alternative to fully custom-made solutions

• OOTB (Out of the box) functionalities

• Configuration

• Customization