måndag 1 december 2008

Strategic Map of the IT consulting industry

I have identified two main profit drivers for IT consulting, which should be the basis for developing business strategies. On the one hand, your strategy is based on your ability solve valuable problems for your customers. On the other hand, your profits are based on your ability to capitalize on the problems you are solving or have solved in an economies of scale setting.

E.g. if you add significant value to your customer, but don't have the corporate structure to use that knowledge to solve a similar problem at lower cost "the next time", you have potential for improvement on the CAPACITY axis in the map.

tisdag 28 oktober 2008

Evolution of IT consulting

In the rear view mirror, the IT consultant industry started out by supplying knowledge about computers. This was followed by a degree of specialization where it was necessary to deepen that knowledge, and firms started supplying role-specific competencies such as IT architects, testers or developers. Today we see further specialization that is widespread in the industry, and that is market specific roles, e.g. IT architect for financial systems, or test engineers for the telecommunications industry. The natural evolution for the IT consultants is to continue closing the gap between the IT solutions and the business models of the customers.