Enterprise Development – Definition and Objectives
Digitalization is fundamentally changing every business and industry. Existing business boundaries are blurring as digital interconnections increase. Value creation and value destruction from digitalization are rapidly reshaping the whole ecosystem. The success of the business is increasingly dependent on how well IT succeeds in becoming a business enabler.
Digitalization enables organizations to interact with their customers in a profound way. Digitalization changes how organizations relate to their customers, deliver products and services, do preventive maintenance and add totally new functions and features to their existing offerings. With IT, it is possible to boost the efficiency of operations, create cost savings, and build competitive advantage through new business models, products, and services enabled by technology. All this is done together with Business Development or the Chief Digital Officer (CDO) who is responsible for digitalizing customer and product processes with the support of Marketing and Business Intelligence. Creating a good customer experience and successfully utilizing the Internet of Things (IoT) requires analytics and a holistic use of Enterprise Information data.
Figure 2.1.1 Enterprise Development – responsibilities and ownership patterns.
The illustration above helps clarify the responsibilities of IT and Business by showing their ownership patterns. The CDO looks after the best interest of the customer and develops the customer experience together with IT and Business. Business is responsible for leading the digitalization of the outer layers that interface with customers and other important interest groups. IT, on the other hand, is responsible for end user and business solutions that enable digitalization.
Enterprise Development is about planning objectives, prioritizing development initiatives, and developing concepts and processes for digitalization. Enterprise Development is related to Business Development, but is limited in scope to processes, solutions and data that enable business, while the latter has focus outside the organization’s boundaries in markets and products that create business.
Enterprise Development is the most important driver and control mechanism for the company’s IT operations and their development. The objective of Enterprise Development is to implement company strategy and business goals by means of information and communication technology; to make decisions on projects, investments and development initiatives; and to ensure business continuity. In order for the cooperation between Business and IT to be functional and consistent, they must share a working governance model, a common language and communication methods.