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1.2 Operational Ownership & Business Accountability

Digital transformation frequently fails when treated strictly as an IT initiative. A digital-first strategy dictates that the Information Technology department provides the infrastructure (the roads), but Operations owns the vehicle and determines the destination. Transferring ownership of system logic and data quality to the business unit ensures the tools reflect physical reality rather than abstract database schemas.

1. The Separation of Powers

Clear boundaries prevent finger-pointing during downtime. Define ownership based on the layer of the technology stack.

IT Department Responsibilities (The Enabler)

  • Infrastructure & Security: Server uptime, network latency, cybersecurity, and patch management.
  • Architecture: Ensuring new tools integrate with the existing ecosystem (SSOT) without creating data silos.
  • Availability: Guaranteeing the system is accessible 24/7.

Operations/Business Responsibilities (The Owner)

  • Process Logic: Defining how the system behaves (e.g., "Block shipment if test fails").
  • Master Data: Accuracy of BOMs, Routings, and User permissions.
  • Adoption: Training shift leads and enforcing system usage on the floor.

Ownership Logic

  • If the server crashes → IT Issue.
  • If the barcode scans correctly but returns "Part Not Found" due to missing data → Operations Issue.
  • If the workflow is technically functional but inefficient for operators → Operations Design Failure.

Pro-Tip: When a production manager says "The system is broken," ask immediately: "Is it down, or is it wrong?" "Down" is IT; "Wrong" is Operations.

The Product Owner (PO) Role

Software cannot be built by committee. Assign a dedicated Product Owner from the business side (Manufacturing Engineering or Production Management) to bridge the gap between code and concrete.

PO Mandate

The PO translates business needs into technical requirements. They possess the authority to approve or reject features.

  • Profile: Must understand the physical manufacturing process deeply. An IT project manager cannot fill this role effectively.
  • Duty: Prioritize the backlog based on ROI and operational risk, not just user complaints.

Decision Logic

  • If a feature request lacks a defined business value (Time saved / Quality improved) → PO rejects request.
  • If Operations demands a change that violates architectural integrity (e.g., direct DB writes) → IT Architect rejects request.

Data Governance and Accountability

IT backs up the database; Operations ensures the data inside is worth saving. Garbage data leads to garbage execution, regardless of system uptime.

The "Data First" Rule

New product introductions (NPI) must include digital data readiness as a gatekeeper.

  • Condition: A physical product cannot launch until its digital twin (BOM, Route, Limits) is validated in the MES.
  • Metric: 100% Master Data accuracy required before Pilot run.

Pro-Tip: Shift the "IT Budget" for specific modules to the Operations P&L. When the Production Director pays for the license maintenance, they become significantly more interested in whether the tool is being used correctly.

Shadow IT vs. Citizen Development

Engineers often build isolated tools (Excel macros, Python scripts) to bypass rigid IT policies. Manage this energy rather than suppressing it blindly.

Risk Classification

  • High Risk (Shadow IT): Unmanaged, undocumented tools running critical processes (e.g., An Access DB calculating final test limits). Action: Migrate to Enterprise System immediately.
  • Managed Risk (Citizen Development): Low-code/No-code apps built by engineers within an IT-sanctioned sandbox (e.g., PowerApps, Grafana dashboards) using read-only APIs. Action: Allow and Monitor.

Governance Logic

  • If the tool generates financial data or controls quality decisions → Must be IT-supported Enterprise Software.
  • If the tool is for visualization or local reporting only → Business Owned / Citizen Developed.

Final Checklist

Category

Metric / Control

Threshold / Rule

Governance

System Owner

Named Business Leader (not IT) for every Module

Role

Product Owner

1 Dedicated PO per major system (MES/ERP)

Finance

Budget Allocation

License/Dev costs charged to Ops P&L

Data

Master Data Quality

Ops owns accuracy; IT owns backup

Security

Shadow IT

0 Critical processes running on Excel/Access

Change

Feature Request

Must come from PO, not individual users

Uptime

Accountability

IT owns Availability; Ops owns Utilization

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