MIS Quarterly Executive


Between 1998 and 2004, the Intel IT organization transformed itself from a mediocre IT operation to one approaching world-class status, where it was consistently rated as a strategic business partner by a majority of Intel executives. This article describes that transformation.Based on post-transformation analysis and research, it appears that four strategies were particularly important in redefining Intel’s IT organization’s business contribution: 1. Managing the IT budget, where the goal was to create a sustainable economic model through careful cost management; 2. Managing IT assets and value chain, where the goal was to develop IT as a corporate core competency; 3. Managing IT for business value, where the goal was to optimize the business value of IT; 4. Managing IT like a business, where the goal was to run IT like a market-driven service organization, running IT as efficiently and effectively as possible in support of Intel’s goals. By simultaneously addressing all four strategies, Intel IT improved its efficiency and significantly increased IT’s business value. Also, an extensive survey of 50 CIOs found that maturing these strategies is statistically significantly related to achieving increased value from IT in other enterprises.