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Many managers think that developing and rolling out a major IT system is like putting up a warehouse: You build it and you're done. But that does not work for IT anymore. Taking that approach results in rigid, costly systems that are outdated from the day they are turned on. What's needed for today's businesses is IT that serves not only as a platform for existing operations but also as a launchpad for new functions and businesses. In this article, the authors present a path-based approach that addresses the primary challenges of IT: the difficulty and expense of mapping out all requirements before a project starts because people often cannot specify everything that they need beforehand; the other unanticipated needs that almost always arise once a system is in operation; and the tricky task of persuading people to use and "own" it. Japan's Shinsei Bank emerged during the authors' research as a standout among the companies applying the path-based method. The firm designed, built, and rolled out its system by forging together, not just aligning, business and IT strategies; employing the simplest possible technology; making the system truly modular; letting it sell itself to users; and ensuring that users influence future improvements. Some of the principles are variations on old themes, while others turn the conventional wisdom on its head.

Codelco was a Chilean copper-mining company, widely considered to be one of the most professionally managed firms in South America in spite of the fact that it was 100% government-owned. A $10.5 billion company in 2005, Codelco faced the challenge of incorporating information technology into its production processes, which had historically been very manual in nature. CEO Juan Villarzu's initial turnaround attempts introduced a customer-centric corporate culture to his ranks, but he was still challenged by how to create an outsourcing strategy given his location and the traditionally low IT-to-total-spending ratio in the mining industry. Villarzu envisioned moving to a robust IT architecture, enhancing the solutions that were available, identifying further needs in the company and deciding how to fix them, and working together with Codelco's business processes to assess, plan, and build new IT projects.

Wipro Technologies, a rapidly growing software services firm based in India, decided to use principles from the Toyota Production System (also known as lean) to fundamentally change their operating model. Looks at why Wipro chose to use lean and how they went about implementing it in a novel context such as this. Provides detail of Wipro's internal and external environment, which was necessitating the change (shift from delivering a low-cost product to providing a business solution). Also, explores whether this new approach can lead to a substantial competitive advantage.

Spreadsheet supplement for case 607032.

In 2004, Mark Lundstrom must decide on a funding method and strategic approach for BioScale, a biotechnology company that he founded. BioScale has developed a microchip-based bioanalytical platform that can be used to detect very small concentrations of cells, viruses, proteins, or small molecules. The company has several multibillion dollar markets in its sights. Up to this point, Lundstrom has used a combination of individual and angel equity funding and government grants to meet the company's capital needs. Now he must decide whether to continue on his current "go slow to go fast strategy" or, alternatively, raise a substantial round of capital or find a strategic partner. Also explores Lundstrom's career as an entrepreneur in science-based businesses.