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Where Should Your IT Constraint Be?: The Case of the Financial Services Industry

By Boaz Ronen, Alex Coman
Communications of the ACM, November 2020, Vol. 63 No. 11, Pages 34-37
10.1145/3382081
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The financial services industry is in a state of turmoil due to technological innovation and the industry's move from brick-and-mortar to digital and particularly mobile service delivery. In most cases, information technology (IT) function is the constraint blocking the organization from innovating rapidly.

In this Viewpoint, we seek to locate where the constraint of the IT function should strategically be. In recent work^2,3,4,5,6 the focus was on the tactical management of a system using the theory-of-constraints (TOC). Research done so far has not addressed the strategic location of the constraint.

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