This PPT slide, part of the 20-slide IT Decision Making Framework PowerPoint presentation, presents a framework for making IT decisions, focusing on the relationship between standardization and integration within an organization. It categorizes operating models into 4 quadrants based on 2 axes: the level of integration and the degree of standardization.
The vertical axis represents integration, ranging from low to high. A high level of integration suggests that transactions across different business units and countries are similar, facilitating coordinated efforts. Conversely, low integration indicates isolated operations, where units function independently.
The horizontal axis illustrates standardization, with high standardization leading to economies of scale and shared resources. This quadrant, labeled "Coordinated," emphasizes the benefits of a unified approach. The "Shared" quadrant, while still maintaining a high level of standardization, allows for some local customization without incurring significant costs.
As you move to the left, the model transitions into the "Isolated" quadrant, which is characterized by a lack of standardization and integration. Here, organizations may face challenges due to disjointed systems and processes. The "Replicated" quadrant indicates a middle ground, where some standardization exists,, but local adaptations are also present.
The arrows on the right side of the slide suggest potential drivers for transitioning between these models. Factors influencing this movement could include changes in business strategy, technology advancements, or shifts in market demands. Understanding these dynamics is crucial for organizations aiming to optimize their IT governance and operational efficiency.
This slide is part of the IT Decision Making Framework PowerPoint presentation.
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