Splitting demand from supply in IT

Companies can get more productivity from their IT investments by setting up demand organizations that coordinate development requests between businesses and IT suppliers.
These demand organizations also coordinate requests across business units, thereby helping companies to avoid duplication and to achieve greater economies of scale.
Besides managing the suppliers and development projects, demand organizations should control business processes that are increasingly dependent on IT.

Exhibit 1: When business units work directly with IT, they often set up their own enterprise systems. Creating a unified demand organization can simplify the interface with the IT supply group.
Exhibit 2: The demand organization takes the lead in evaluating business processes and envisioning new applications, while the IT supplier manages the design, build, and test phases.

Illustration by Brad Yeo

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