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"Innovation comes from the producer—not from the customer," were the insightful words once spoken by W. Edwards Deming, an American professor, author, and a thought leader in management philosophy. Past the adage, the significant takeaways from his teachings were his meticulously designed cycles of management systems—an aspect that now forms the essence of today's Configuration Management.




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Flevy Management Insights: Configuration Management


"Innovation comes from the producer—not from the customer," were the insightful words once spoken by W. Edwards Deming, an American professor, author, and a thought leader in management philosophy. Past the adage, the significant takeaways from his teachings were his meticulously designed cycles of management systems—an aspect that now forms the essence of today's Configuration Management.

In its essence, Configuration Management enables organizations to systematically manage, organize, and control the changes in the processes within their systems. Research conducted by Gartner shows that companies with robust configuration management frameworks have seen a 25% increase in their operational efficiency.

Furthermore, these companies have embraced innovative digital transformations that have significantly reduced risks and improved revenue streams. As the business environment becomes ever increasingly global and digital, the need for effective Configuration Management will continue to rise.

The Core Principles of Configuration Management

Across industries, there are four fundamental principles of Configuration Management:

Together, these principles build towards Operational Excellence, a critical component for any Fortune 500 company.

Best Practices for Robust Configuration Management

1. Develop a thorough Configuration Management Plan: As per a study by PwC, organizations with a well-documented configuration management plan experience 30% fewer execution-related issues compared to those without one. These plans offer a framework to manage processes, schedules, roles, responsibilities, and parameters.

2. Implement an Efficient Configuration Management System: According to Forrester, implementation of an efficient configuration management system can increase system uptime by up to 20%. It should offer visualization of your IT environment, identification of configuration items, and process enforcement capabilities.

3. Ensure Regular Audits and Updates: A Bain & Company study points out that businesses conducting regular audits with updates to their configuration management systems have 15% better process efficiency.

Configuration Management’s Role in Strategic Planning

In the domain of Strategic Planning, Configuration Management plays a crucial role. As highlighted by Accenture, leaders in Strategic Planning use configuration management as a catalyst for establishing coherence between business operations and strategy, leading to a 35% increase in efficiency. It also strengthens other organizational facets like Risk Management, Performance Management, Strategy Development, Change Management, and Business Transformation.

Innovation Through Configuration Management

As per the MIT Sloan Management Review, 89% of the companies listed as 'most innovative' this year have robust Configuration Management. It provides them with the structure to manage, control, and innovate their products, reflecting the foresight of W. Edwards Deming. In innovation, establishing robust Configuration Management becomes a necessity.

The power of Configuration Management to drive operational efficiency, risk reduction and innovative capacity cannot be understated. To achieve operational excellence and drive innovation, thorough system configuration is critical. Its far-reaching implications span Risk Management, Performance Management, Strategy Development, Change Management, Business Transformation and much more. Thus, for any business aspiring to a Fortune 500 feature, a comprehensive, well-executed Configuration Management plan is an imperative.

For effective implementation, take a look at these Configuration Management best practices:


Explore related management topics: Digital Transformation Operational Excellence Business Transformation Change Management Strategic Planning Performance Management Strategy Development Risk Management ITIL Service Management Audit Management ITSM




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