The IT Factory

Last year Gartner identified the 10 major forces that are actively reshaping the future of IT services and the outsourcing market*. Amongst the much hyped Cloud, Security and Consumerization were included the Value Chain and Componentization -- items that don t get so much Press hype but, according to Gartner, are fundamental forces that should be addressed. A new title: The IT Factory describes operating within these forces by applying Supply Chain Management for IT Infrastructure Services: Using the SCOR Model. The IT Factory is the Solution to Value Chain and Componentization Issues Caspar Hunsche, CTO, Director of Research, Supply Chain Council, Inc. notes that it s been done before: The processes of IT Value Chain and IT Componentization can deliver goods and services by using the same Factory techniques that supply chains do. Brad Ellison - Manager, Global Data Centers - Intel(r) Corporation agrees noting We have moved deliberately to a factory metaphor. We have stopped focusing just on what data centers store and are asking ourselves, What do they output? It s clear that IT departments need to get down to the Factory floor to gain the experience that has been bread and butter thinking for Supply Chain disciplines for many years. Hans van Aken, a seasoned HP employee, with support from The Supply Chain Council, has used the Global Standard SCOR (Supply-Chain Operations Reference-model) to distil the experience of many Supply Chain experts to describe how businesses can implement IT Commoditisation and Value Chain using tried and tested techniques. Hans van Aken describes how supply chain management for IT infrastructure services can use the reputable SCOR Model. He describes a position where Business demand is met with an efficient IT Supply: Van Aken notes: This model is actually drawn as a demand-driven IT supply chain which puts the pull of the customers demands in the spotlight rather than the push of available technologies and supplies. The choice for this demand-driven depiction encourages many in IT to first understand the demands of the customers (and the customers customers) and then secondly define and organize appropriate supply chains to meet the demands.The beauty of the content as devised by van Aken is the detailed practical guidance for delivering the Model. The Model is clearly set out and readers will be re-assured to know that the fundamentals are based on the successes of the tried and tested SCOR approach. By thinking out of the box and using established successes in complementary industries it s just possible that Hans van Aken has delivered a solution to two of Gartner s imperatives.