Evaluating Operating Models: Risks and Costs Analysis PPT
This PPT slide, part of the 20-slide IT Decision Making Framework PowerPoint presentation, presents a comparative analysis of different operating models—Coordinated, Shared, Replicated, and Isolated—focusing on their associated risks and costs. Each model is evaluated across 2 primary dimensions: risks and costs, providing a structured overview for decision-making.
Under the "Risks" section, the Coordinated model highlights a high risk of errors due to complexity, suggesting that managing multiple elements can lead to mistakes. The Shared model indicates a long reaction time to environmental changes, which could hinder responsiveness. It also notes inflexible solutions that may not cater to diverse user needs, and the potential for significant disruption if the system fails. The Replicated model warns of solution divergence, which can erode overall benefits, while the Isolated model points out a lack of transparency and the risk of subpar solutions due to insufficient knowledge.
The "Costs" section outlines the financial implications of each model. The Coordinated model emphasizes the coordination effort and the operational costs associated with each instance. The Shared model similarly notes coordination costs, particularly in managing updates, and highlights potential agility issues in addressing local needs. The Replicated model reiterates the costs tied to each instance, while the Isolated model stresses the effort needed to achieve transparency across different markets, alongside the recurring operational costs.
The concluding statement underscores the necessity of evaluating the suitability of each model based on the specific risks and complexities involved. This structured approach aids stakeholders in making informed decisions regarding IT governance strategies, aligning operational frameworks with organizational goals.
This slide is part of the IT Decision Making Framework PowerPoint presentation.
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Decision Making Information Technology IT Governance Disruption Governance
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