Where Should Digital and Tech Teams Call Home?
The dilemma of where digital and tech teams should establish their home base is one that shapes an organisation's ability to innovate and deliver value effectively. Should these teams be embedded directly into business units for maximum alignment and speed?
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Where Should Digital and Tech Teams Call Home? 👇🏽
The dilemma of where digital and tech teams should establish their home base is one that shapes an organisation's ability to innovate and deliver value effectively.
Should these teams be embedded directly into business units for maximum alignment and speed? Should technology work as a strategic partner, providing consistent standards and efficiency? Or should a hybrid approach be taken to capture the best of both?
There are three primary models to consider, each with its own set of advantages and challenges:
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Embedded in Business Units ➜ Advantages: Strong business alignment, faster decisions, greater accountability. ➜ Challenges: Risk of duplicated efforts, inconsistent standards, missed economies of scale.
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Centralised Technology Function ➜ Advantages: Consistency, efficient use of resources, easier org-wide initiatives. ➜ Challenges: Risk of disconnect from business needs, slower responsiveness, tech-driven priorities.
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Hybrid Approach: A mix of centralised and embedded teams, balancing standardisation with responsiveness.
The choice of where teams are 'housed,' who they 'belong' to, and who holds P&L responsibility is not just an organisational design question. It is a strategic decision that impacts power structures, collaboration, and, ultimately, the organisation's ability to thrive in a digital-first world.
💬 How is your organisation navigating this dilemma? I'd love to hear your thoughts.👇🏽