Building a Self-Funding Digital Model: Leveraging a Holistic Strategy to Monetize Digital Value
Winning in digital is simply winning. Period.
Strategic North - Value Chain Management insight series
In today’s market, there is no longer a distinction between business strategy and digital strategy. Every enterprise is a technology enterprise. Whether you deliver digital products or service, connected devices, or use digital internally across your entire business, digital is a (or in many cases, “the”) big value driver for most businesses across all industries. This is even more so with market leaders. But executing on a digital mandate requires talent, and the traditional US talent pool is fundamentally tapped out. And it is expensive.
Despite massive investments in digital transformation and globalized workforces, companies routinely fail to optimize their IT organizations because they lack a holistic vision.
Dive into our thinking:
Building a Self-Funding IT Organization: Leveraging a Holistic Strategy to Monetize Digital Value
Download PDFThe Bottom Line
Digital transformation is too expensive to be managed in departmental vacuums. Continuing to treat IT solely as a cost center to be minimized, rather than an economic engine to be optimized, is a failure of executive leadership.
Monday Morning Audit
To determine if your organization is trapped in narrow, siloed thinking, ask your leadership team these three questions tomorrow morning:
Are we monetizing our internally developed digital IP globally, or are we simply absorbing it as a sunk cost?
Are we optimizing incentives and considering “true costing” of labor in talent decisions, or are we just accepting the market cost of labor?
Have we been decisive and strategic in aligning our financial and tax models with our IT model?
Winning in digital requires capital. It is time to look inward, break the silos, and build an IT organization that pays for itself.
Strategic North
This series explores the critical intersection of operations, technology, and financial strategy. Our goal is simple: to help ensure that every journey you take, big or small, moves your organization closer to its Strategic North.
Paul Glunt is a Principal who leads the KPMG LLP Value Chain Management practice, advising C-suite leaders on the financial and operational mechanics of digital transformation. He specializes in architecting self-funding IT organizations, digital COEs, and global operating models that turn technology investments into sustainable cash flow. Paul bridges the critical gap between tax objectives and IT execution, helping to ensure that every digital journey is financially focused and firmly anchored to a company’s Strategic North.
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