Describe the maturity model for IT functions delivery. (from McKeen and Smith 2014) provides a necessary, perhaps

Describe the maturity model for IT functions delivery. (from McKeen and Smith 2014)

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provides a necessary, perhaps critical, component (e.g., financial systems and HR). Providers capitalize on commonality of function and are motivated to pro- vide functions (e.g., customer relationship management [CRM], quality assurance, and content management) to maximize market applicability. Most print operations are now common functions, for instance. Although they differ from firm to firm, they are required by most firms but are not considered to provide any competitive advantage. 3. Standardized. Standardized IT functions not only provide common tasks/activities but also adhere to a set of standards developed and governed by external agen- cies. Although multiple, perhaps competing, standards may exist, the attributes of such functions are well articulated, and as a result these functions enjoy wide appli- cability due to their standardization. Providers of such functionality (e.g., billing/ payment functions, check processing, forms management, facilities management, and disaster recovery planning) seek opportunities beyond common functions by promoting (i.e., developing, proposing, and/or adopting) standards to enhance the interoperability of their functional offerings. 4. Commoditized. These functions are considered commodities similar to oil and gas. Once attributes are stipulated, functions are interchangeable and indistinguishable (i.e., any barrel of oil will suffice). Furthermore, there may be many providers of the function. A good example is application service providers (ASPs) who deliver standard applications developed by third-party vendors to client firms without customization. Other commodity functions include network services, server farms, storage capacity, backup services, and universal power supply (UPS). What really distinguishes a commodity is the realization that the "risks imposed by its absence outweigh the burdens of maintaining its availability" (Marquis 2006). 5. Utility. A utility function is a commodity (such as electricity) delivered by a cen- tralized and consolidated source. This source typically consists of an amalgam of suppliers operating within an integrated network capable of generating sufficient resource to fulfill continuous on-demand requests. Private utilities operate in com- petition with other providers, whereas public utilities tend to be single providers overseen by regulatory agencies that govern supply, pricing, and size. Examples of utilities include Internet service providers (ISPS) as well as other telecommunica- tion services (e.g., bandwidth on demand, and cloud services). These stages represent an evolutionary progression (or maturation) in IT func- tionality. The logic is straightforward: successful, unique functions are copied by other organizations and soon become common; commonality among IT functions paves the way for standardization; standardized functions are easily and effectively trans- acted as commodities; and finally, commoditized functions can be provided by utilities should an attractive business model exist. The group interpreted this progression as an ongoing process that is, individual functions would be expected to advance through provides a necessary, perhaps critical, component (e.g., financial systems and HR). Providers capitalize on commonality of function and are motivated to pro- vide functions (e.g., customer relationship management [CRM], quality assurance, and content management) to maximize market applicability. Most print operations are now common functions, for instance. Although they differ from firm to firm, they are required by most firms but are not considered to provide any competitive advantage. 3. Standardized. Standardized IT functions not only provide common tasks/activities but also adhere to a set of standards developed and governed by external agen- cies. Although multiple, perhaps competing, standards may exist, the attributes of such functions are well articulated, and as a result these functions enjoy wide appli- cability due to their standardization. Providers of such functionality (e.g., billing/ payment functions, check processing, forms management, facilities management, and disaster recovery planning) seek opportunities beyond common functions by promoting (i.e., developing, proposing, and/or adopting) standards to enhance the interoperability of their functional offerings. 4. Commoditized. These functions are considered commodities similar to oil and gas. Once attributes are stipulated, functions are interchangeable and indistinguishable (i.e., any barrel of oil will suffice). Furthermore, there may be many providers of the function. A good example is application service providers (ASPs) who deliver standard applications developed by third-party vendors to client firms without customization. Other commodity functions include network services, server farms, storage capacity, backup services, and universal power supply (UPS). What really distinguishes a commodity is the realization that the "risks imposed by its absence outweigh the burdens of maintaining its availability" (Marquis 2006). 5. Utility. A utility function is a commodity (such as electricity) delivered by a cen- tralized and consolidated source. This source typically consists of an amalgam of suppliers operating within an integrated network capable of generating sufficient resource to fulfill continuous on-demand requests. Private utilities operate in com- petition with other providers, whereas public utilities tend to be single providers overseen by regulatory agencies that govern supply, pricing, and size. Examples of utilities include Internet service providers (ISPS) as well as other telecommunica- tion services (e.g., bandwidth on demand, and cloud services). These stages represent an evolutionary progression (or maturation) in IT func- tionality. The logic is straightforward: successful, unique functions are copied by other organizations and soon become common; commonality among IT functions paves the way for standardization; standardized functions are easily and effectively trans- acted as commodities; and finally, commoditized functions can be provided by utilities should an attractive business model exist. The group interpreted this progression as an ongoing process that is, individual functions would be expected to advance through