Direct Energy: Evolving a New Role for IT
MIT Sloan Research Paper No. 4665-07
CISR Working Paper No. 370
15 Pages Posted: 14 Oct 2007
Date Written: June 2007
Abstract
In 2005 top management of Direct Energy, a rapidly growing energy utility, distribution and trading company, recruited a new CIO to be a member of the executive team. The case describes three years of significant change in the role of IT and provides lessons in mutual IT-business learning and relationship building for businesses in transition to greater dependency on IT as a competitive resource. Of particular relevance is the approach taken by top management in setting priorities and introducing change, including new IT governance mechanisms and assistance to businesses to gain credibility and influence.
Keywords: IT-enabled change, IT governance, IT and senior executive leadership
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