Skip to content
Product cover

Market Management to Transform the IT Organization

July 15, 1998 | Michael J. Earl | Managing Technology

In recent years, companies have faced growing pressure to radically change the way they organize and manage the IT function. To manage IT effectively, companies must address two fundamental issues: the supply side, or the provision of IT services, and the demand side, or the identification and prioritization of application needs. Using the example of BP Exploration (BPX), a division of British Petroleum, the authors provide a four-stage model for transforming IT departments in which the balance of attention allocated to supply or demand shifts over time, but in which neither side is ever ignored.

Like many organizations, BPX was forced to reinvent itself in response to a crisis. When the price of crude oil plummeted unexpectedly, the CEO decided that radical change was the only way for the company to survive. The transformation of the company's IT organization took place over six years and consisted of four stages:

1. Recognizing disequilibrium. The company examines the crisis in IT. It questions the value of IT and the IT function.

2. Emphasizing supply management. The company sets new delivery goals and begins to rebuild the technology platform. It focuses on realizing value from the inherited IT situation.

3. Emphasizing demand management. The company works out an applications vision and establishes demand management processes while planning the future infrastructure. Its concern is with creating future value.

4. Maintaining equilibrium. The company addresses governance of the new IT organization and develops partnerships between IT and both business managers and vendors. The goal is to sustain value.

Organizations flounder when they tackle the demand side or the supply side in isolation. BPX saw that a successful transformation had to tackle both, with the balance of emphasis changing over time; at stage four, an ongoing state of equilibrium exists between supply and demand. In using this model, companies must recognize the crucial role of IT: to understand the past and predict the future of both technological advances and business needs while balancing the supply and demand management perspectives.

Purchase Options

Educator and Student Discounts Available. Learn more »

  BENCHMARKS  
Loading Time: Base Classes  0.0009
My Controller Construct  0.0004
Build Nav  0.0006
Controller Execution Time ( Products / Route )  0.0888
Total Execution Time  0.0897
  GET DATA  
No GET data exists
  MEMORY USAGE  
1.5758 MB
  POST DATA  
No POST data exists
  URI STRING  
store/market-management-to-transform-the-it-organization
  CLASS/METHOD  
products/route
  DATABASE:  MITSLOAN_DEV   QUERIES: 68  (Hide)
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0010  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0006  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0011  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0017  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0007  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0006  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0017  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0015  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0015  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0012  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0023  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0010  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0007  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0010  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'e0cd973a8f671d51a0c4d73762926a8f'
ORDER BY `created_at` DESC 
0.0020  

SELECT SQL_CALC_FOUND_ROWS cat_id
FROM (`product_categories`)
WHERE `status_id` =  'A'
AND `url_friendly` =  'market-management-to-transform-the-it-organization'
AND `parent_id` =  1 
0.0188  

SELECT c.parent_id, c.format_id
                    FROM products AS p, products AS c
                    WHERE p.prod_id = c.parent_id AND
                        c.avail_id IN ('A','B','D') AND
                        c.type_id = 'V' AND
                        (
                            c.sku = 'market-management-to-transform-the-it-organization' OR
                            if(c.format_id = 'Certificate', '', p.url_friendly) = 'market-management-to-transform-the-it-organization'
                        )
                    LIMIT 1 
0.0024  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  2267 
0.0036  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '2267' 
0.0004  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '2267'
ORDER BY `sort` ASC 
0.0001  

SELECT `cat_id`
FROM (`product_categories__products`)
WHERE `prod_id` =  '2267' 
0.0001  

SELECT *
FROM (`product_flags__products`)
WHERE `prod_id` =  '2267' 
0.0001  

SELECT `sku`
FROM (`products__xsell`)
WHERE `prod_id` =  '2267'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0158  

SELECT `products`.`parent_id`
FROM (`transaction_lines`)
JOIN `products` ON `products`.`sku` = `transaction_lines`.`sku`
JOIN `product_categories__products` ON `products`.`parent_id` = `product_categories__products`.`prod_id`
WHERE `products`.`avail_id` =  'A'
AND TO_DAYS(transaction_lines.updated_at) < (TO_DAYS(NOW()) - 90)
AND `product_categories__products`.`cat_id` IN ('243') 
GROUP BY `products`.`parent_id`
ORDER BY COUNT(*) DESC
LIMIT 6 
0.0005  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '3379' 
0.0003  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '3379' 
0.0003  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '3379'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '3385' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '3385' 
0.0003  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '3385'
ORDER BY `sort` ASC 
0.0002  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '3991' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '3991' 
0.0003  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '3991'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '4261' 
0.0003  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '4261' 
0.0003  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '4261'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '1505' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '1505' 
0.0006  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '1505'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '33' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '33' 
0.0002  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '33'
ORDER BY `sort` ASC 
0.0003  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2267'
AND `kind` =  'image_600x600'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0002  

SELECT *
FROM (`media`)
WHERE `media`.`media_id` =  '1021' 
0.0001  

SELECT *
FROM (`mime_types`)
WHERE `mime_types`.`extension` =  'jpg' 
0.0002  

SELECT *
FROM (`media_metadata`)
WHERE `media_id` =  '1021' 
0.0017  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2267'
AND `kind` =  'gallery_image'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0003  

SELECT *
FROM (`products`)
WHERE `avail_id` IN ('A', 'B', 'C', 'H') 
AND `parent_id` =  '2267'
AND `type_id` =  'V'
ORDER BY IF(position = 0, 1, 0) ASC , `position`, `title` 
0.0002  

SELECT `c`.`format_id`, `c`.`price`, `c`.`sale_price`
FROM (`products` AS c)
WHERE `c`.`prod_id` =  '2268'
LIMIT 1 
0.0005  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2268'
AND `kind` =  'thumbnail'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0004  

SELECT `product_categories__products`.`cat_id`
FROM (`product_categories__products`)
JOIN `product_categories` ON `product_categories__products`.`cat_id` = `product_categories`.`cat_id`
WHERE `product_categories__products`.`prod_id` =  '2267'
AND `product_categories`.`parent_id` =  1
AND `product_categories__products`.`cat_id` NOT IN (1, 261)  
0.0006  

SELECT `cat_id` AS id, `parent_id` AS parent, `status_id`, `name`, `description`, `url_friendly`, `page_title`, `meta_keywords`, `meta_description`, `position`, `updated_at`
FROM (`product_categories`)
WHERE `cat_id` != 1
ORDER BY `parent_id`, IF(position = 0, 1, 0) ASC , `position`, `name` 
0.0004  

SELECT *
FROM (`product_categories`)
WHERE `status_id` =  'A'
AND `parent_id` =  1
AND `cat_id` NOT IN (1, 261) 
ORDER BY `name` 
0.0002  

SELECT *
FROM (`site_settings`)
WHERE `option_key` =  'announcement' 
  HTTP HEADERS  (Show)
  SESSION DATA  (Show)
  CONFIG VARIABLES  (Show)