United States

Application Factories Seeking Solutions: The Need for Transformation in IT Product Development

Jun 16, 2015
From the Advisory Institute


IT organizations are finding that their traditional product design and delivery practices have not kept pace with the needs of their business stakeholders. The "manufacturing" process must be refined to build and deliver a more diverse and agile set of products with increased quality and speed to market.

The solution framework must be flexible and iterative. Software must be revisited and continually improved. The process must involve the appropriate parties at the appropriate times, with groups such as IT security and risk management, tax, legal, and finance brought in at key intervals.

KPMG recommends that CIOs and their teams transform IT product development with a phased approach:

  • identify stakeholders and the business services being supported
  • choose delivery methods fit to current and future portfolios
  • create standardized and repeatable processes
  • establish software development life cycle (SDLC) methodology
  • incorporate change management for transitioning to a new way of working
  • perform integration and continuous improvement
  • implement sustainable governance


Read this document to learn more about each phase and to explore brief case study examples from the chemical, consumer products, and financial services industries.