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.

DataFinancial GovernanceAccountability (P&L)

Budgets drive behavior. If the IT department pays for the MES licenses, Operations treats the system as a "free utility" and Accountabilitydemands

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

The "DataUser First"Pays" RuleModel

NewShift productthe introductionsbudget (NPI)for mustoperational includesoftware digitalfrom datathe readinessCIO asto athe gatekeeper.COO/Plant Manager.

• Condition:Software Licenses: 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 modulesCharged to the OperationsFactory P&L.

Custom Development: Billed internally to the specific Production Unit requesting the change.

The Consequence

When the Production Director payssees the line item for the"Custom licenseReport maintenance,Development" theyon their monthly P&L, irrelevant requests disappear. They become significantly more interested in whether the tool is being used correctly.

ShadowChange Management & Validation

IT writes the code, but Operations must certify it. Never allow IT vs. Citizen Development

Engineers often build isolated tools (Excel macros, Python scripts) to bypass"sign rigidoff" ITon policies.a Manageproduction thisprocess energy rather than suppressing it blindly.change.

RiskUser ClassificationAcceptance Testing (UAT) Ownership

• High Risk (Shadow IT):Role: Unmanaged,Operations undocumentedmust toolsprovide running critical processes (e.g., An Access DB calculating finalthe test limits).data and perform the physical test execution.
• Action:Sign-off: MigrateDeployment to EnterpriseProduction Systemrequires immediately.
• Manageda Riskdigital (Citizensignature Development):from Low-code/No-codethe appsProduct built by engineers within an IT-sanctioned sandbox (e.g., PowerApps, Grafana dashboards) using read-only APIs. Owner.Action: Allow and Monitor.

GovernanceChange Logic

• If thea toolbug generatesis financialfound datain orProduction controlsafter qualityUAT decisionssign-off → MustOperations beowns IT-supportedthe Enterpriseimpact Software(IT fixes the code, but Ops explains the scrap cost).
• If theIT tooldeploys iswithout forPO visualization or local reporting onlysignature → BusinessIT Ownedowns /the Citizen Developedimpact.

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
SecurityChange	Shadow ITValidation	0Ops Criticalperforms processesUAT; runningIT onperforms Excel/AccessDeployment
Change	Feature Request	Must come from PO, not individual users
Uptime	Accountability	IT owns Availability; Ops owns Utilization