Diagnostics of the IT Operating Model of a Major Fashion Retailer
Project background and objectives

A major fashion retail chain with in-house production facilities and multiple sales channels asked BaOne experts to perform diagnostics of the operating model of its IT function.
External consultants were engaged mainly due to the following reasons:
  • A recent business strategy update with ambitious growth plans
  • High IT costs, dissatisfaction with the quality of IT services and a long time to market
  • Changes due to the forthcoming budget planning cycle for the next financial year
The project’s business objectives included:

  • Identifying areas where IT can help maximize business value
  • Identifying key areas of efficiency losses when using IT resources and external suppliers
  • Comparing current IT metrics and the level of service for business functions with best practices and industry standards

BaOne approach

BaOne has its own methodology for assessing operating model components, which has been evolving over the years of providing services to companies as a whole and their individual business units. When identifying company needs, the team leverages this methodology as a “menu” of relevant components for analysis.

The primary focus in this case was on IT management processes and value chain, the organizational structure in the context of roles and functional areas, the state of IT talent management, KPIs and IT control parameters.

The project team brought together BaOne retail efficiency experts and technology consultants with extensive experience in streamlining operating processes in the fashion industry and building value chains for IT functions.

Project challenges

Lack of information

The key challenge of this project was the lack of information required for analysis. In this case, the level of digitization in tracking employee utilization was extremely low: there is no complete data on actual time spent on tasks for both regular employees and external contractors. Despite the lack of information in systems, the BaOne team successfully reconstructed the complete picture of both the budget and utilization to develop recommendations for adjusting the staffing schedule. Another initiative involved implementing ‘digital snapshots of the workday.’
Satisfaction assessment and feedback management practices
The corporate culture lacked established practices for measuring satisfaction and managing feedback from the business side. During the diagnostics phase, the BaOne team expanded standard interview questionnaires to capture key client expectations.

Such projects often suffer from the lack of formalized functional strategies and limited C-suite availability, which complicates the collection of this information during interviews.

Project outcomes

  • AS-IS assessment of IT processes, the organizational structure and KPIs
  • Comparison of current IT processes and the organizational structure with best practices and industry standards
  • Recommendations covering the budget, the organizational structure, headcount and processes with a view to significantly improve efficiency and transform the IT function to achieve business goals
  • Recommendations for enhancing the IT operating model, including for organizing the domain structure and with regard to the functional scope for initial domains (functions with business needs and related security requirements meeting domain structuring criteria)

    Domains will bring significant efficiency gains in focus areas, while being the primary driver of headcount growth within the target IT structure
  • Recommendations implementation roadmap – initiatives the majority of which can be implemented or piloted within six months
Given the challenges outlined above, the recommendations were aimed not only at improving the IT function’s efficiency in supporting business growth and development plans but also at enhancing the IT function’s transparency and implementing supporting initiatives (e.g., developing IT-specific HR processes).

FAQ

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