IT impacts on Business model
IT impact on company’s business model. To execute company’s strategy and deliver value to all shareholders, IT has become central to designing and evolving a company’s business model and value proposition. In this chapter, there are three aspects that we can assess IT impact on company’s business model-impact, opportunities and risks. First of all, there are two dimensions to IT Impact Map- strategy and capabilities. Lots of companies have used IT to transform a company’s business model. IBM and Medtronic are all very classical examples to IT impact. Especially, by launching Business Process Outsourcing (BPO) practice within its Global Service business unit, IBM not only was able to achieve significant revenue growth and but also helps its clients transform their business model strategies and capabilities to drive business value and to keep advantages for the companies. However, the location of IT Impact Map have influence on IT resource decisions and that relate to project goals, sponsorship, governance, and even the levels of risk and uncertainty. Therefore, an IT executive has to make sure if the company have right project sponsorship and implementation approach based on the level of impact and degree of uncertainty and risk. Second, if we look at the opportunities for using IT to improve business model performances; we can see IT change the basis of competition.