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Communications of the ACM

Viewpoint

Where Should Your IT Constraint Be?: The Case of the Financial Services Industry


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Credit: AdolescentChat

The financial services industry is in a state of turmoil due to technological innovation and the industry's move from brick-and-mortar to digital and particularly mobile service delivery. In most cases, information technology (IT) function is the constraint blocking the organization from innovating rapidly.

In this Viewpoint, we seek to locate where the constraint of the IT function should strategically be. In recent work2,3,4,5,6 the focus was on the tactical management of a system using the theory-of-constraints (TOC). Research done so far has not addressed the strategic location of the constraint.


 

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