2.10

Focus Areas

The focus areas of Enterprise Development are linked to the size and maturity level of the company. The focus areas for small companies are often related to getting basic IT services up and running and maintaining them. As the company grows, it becomes more important to manage Enterprise Development and to have a formalized way of executing tasks and measuring performance.

Companies operating in IT-intensive sectors should adopt operating models that are more advanced than the size of the company would normally dictate. In IT-intensive companies such as financial institutions, IT is an essential part of core processes.

 

Typical Focus Areas in Companies of Different Sizes

 

Small Companies

Net sales 10M€, operating locally

Digitalization opens new doors for each size of organization. In some cases, small companies are the quickest to react to business changes. Smaller organizations should focus on agility and quick time-to-market with new solutions.

Finding reliable IT service providers with a service offering that ensures business continuity is crucial for small companies. Business continuity involves both the availability of information processed and stored in the company, and the availability of IT services. It is challenging for small companies to perform this role effectively on their own. This is why finding a good IT service partner corresponding to the size of the company is recommended.

Properly ensuring business continuity involves monitoring service delivery performance and managing risks actively (risk awareness, deciding on acceptable risk levels and risk mitigation).

Small companies should strive for formalized decision-making in all projects and investments. This is important because even though decision-making is fairly straightforward and fast in a small company, decisions must match business realities (relevance of investment, return on investment, resource planning etc.).

 

Medium-Sized Companies

Net sales 100 M€, decentralized operations

Generally, a medium-sized company pursues growth, which is why these companies run several simultaneous projects involving different business areas. In order to obtain and maintain a realistic and up-to-date overview of the company’s entire IT project landscape, projects need to be divided by Business Development and Digitalization and assigned to the agreed portfolios. Focused Project Portfolio Management greatly increases the operational efficiency of medium-sized companies.

A medium-sized company should also monitor the fulfilment of the agreed service levels and make detailed demands regarding these to its IT service providers, whether external or internal. In particular, it is essential to ensure that the services and solutions are scalable as the company grows.

When a company is on a growth path, it is time to start collecting, documenting and implementing IT management best practices. These practices form a solid foundation and baseline for the company’s subsequent process development and will considerably accelerate it. By doing so, IT also enhances its own role as a significant profit enabler.

 

Large Companies

Net sales 1 000 M€, operating internationally

A large enterprise provides its IT with clear objectives: IT must be one of the company’s strategic functions and fully integrated with Business as a unified Business Development function. This is reflected in decision-making and commitment, as all development is attached to specific business areas and is thus owned by them. IT, in turn, undertakes project and development implementation in a responsible and measurable manner using a standardized Project Management Model.

Large companies face the challenge of managing the increasing complexity of both business and IT operations. Consequently, within Business Development and Digitalization, the company must make a number of important and conscious decisions that affect the company’s strategy and ways of working. These decisions include the company’s general organization, harmonization of services, standardization of terminology, and cooperation with other players in the industry.

Diversity can be managed only when Business Development and Digitalization are a permanent part of the company’s structure and are operated in a fully formalized, organized and measured manner.

 

Very Large Companies

Net sales 10 000 M€, operating globally

The greatest challenge facing IT management in very large companies is how to achieve and maintain efficiency. In order to survive and succeed in its respective size category, a very large company must continuously renew itself also in terms of IT. Renewal and efficiency are attainable goals as long as the company makes sure the following things are taken care of:

  • The demands placed on IT support the company identity.
  • Concept and process development is a monitored and accountable operation, performed under Business Development and Digitalization.
  • Objectives are clear and concise.
  • Using Enterprise Information management, companies are able to follow the business environment and justify transformation efforts.

 

In very large companies, the need to manage the ecosystems that offer services and solutions is emphasized. The roles and responsibilities of the company and the ecosystems complement each other and cooperation is efficient and innovative.

ED_Focus

Figuer 2.10.1 The Enterprise Development focus changes with the size and complexity of the company.

 

Enterprise Development is the principal and most important control mechanism for a company’s IT operations. Enterprise Development integrates the other four streams and steers their objectives, ways of working and operational targets. Smooth business cooperation ensures that the implementation of the company’s strategy and the strategic intent of business areas are supported by IT.

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