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There are different types of centers (organizational units) within an organization like cost center, profit center, revenue center, investment center. Each different center has other characteristics regarding its goals and competences. I find it very valuable to know how the IT department (or specific projects or even software systems that need modernization) are seen from the C-level to create a modernization plan that catches people that have the budget responsibility.
Thus, I conclude that using cost factors alone as motivation for modernization is insufficient if your goal is not merely cost savings but rather dominating an entire market / growth.
The text was updated successfully, but these errors were encountered:
There are different types of centers (organizational units) within an organization like cost center, profit center, revenue center, investment center. Each different center has other characteristics regarding its goals and competences. I find it very valuable to know how the IT department (or specific projects or even software systems that need modernization) are seen from the C-level to create a modernization plan that catches people that have the budget responsibility.
Also, Gregor Hohpe uses this responsibility center concept for finding the right argumentation line for C-Level (see https://www.linkedin.com/pulse/reverse-engineering-organization-gregor-hohpe/).
Thus, I conclude that using cost factors alone as motivation for modernization is insufficient if your goal is not merely cost savings but rather dominating an entire market / growth.
The text was updated successfully, but these errors were encountered: