Sustainable positioning for IT services unit of chemical company

A leading global chemical company was struggling with positioning their in-house IT service provider. After a difficult phase of outsourcing, the company had transitioned its IT services back inside as an internal function. The IT unit develops and manages all business applications for the various business units around the world. However, the business units were not accepting the IT service unit, which faced strong competition from external IT service and consulting firms.

Challenge
A.T. Kearney was engaged to define the strategy for the in-house IT service unit. The project had three primary objectives:

  1. Define leading IT service value propositions based on the long term business strategy
  2. Optimize the IT service unit’s working relationship with the business units and position the IT service unit to be successful over external competition
  3. Reduce the delivery costs and enhance global reach by leveraging the global IT service network

Approach
Together with a global client team of business and IT representatives, A.T. Kearney developed the strategy for future positioning of the IT service unit.

The team followed a structured approach to deliver robust results:

  • Developed future IT value propositions
    • Analyzed the long term business strategy of all business units
    • Defined IT value propositions across the business units
    • Aligned future IT value propositions with the business units and corporate
    • Defined required IT skills for offering the future value propositions
  • Improved customer liaison and relationships
    • Developed internal customer database to collect all relevant information about IT demand by customers (business units, functions)
    • Interviewed key stakeholders on business side to gain input and begin alignment
    • Planned and implemented internal marketing and sales activities for key customers in business units and functions
    • Defined new roles and responsibilities of business partners
    • Selected and trained business partners
  • Enabled global IT service delivery footprint
    • Analyzed global cost factors for key job profiles
    • Identified external partners globally
    • Defined global network of internal and external resources
    • Defined optimal team structures and global set-up
    • Defined local/regional/local sourcing strategy and supplier audit process for IT services

Results
The team re-positioning the in-house IT service unit for sustainable success. Not only is the IT service unit revitalized, the project realized important, tangible results.

The business units gained significant top and bottom-line benefits through the new IT value propositions. Plus they are gaining from improved and enhanced IT services.

The in-house IT service provider is strongly positioned over external IT providers, because of better service, pricing, and efficiency, specifically:

  • They are able to provide highly proactive service because of their detailed understanding of the company’s and business unit’s needs and requirements
  • They have reduced delivery costs by double digits through leveraging their global network
  • They have significantly increased capacity utilization and global delivery capabilities