Old, vertical management structures pull them in another.

A tug of war ensues: New, horizontal processes pull people in one direction. Product or functional teams jealously guard power and turf-and process integration threatens their control. What’s the big deal about creating a process enterprise? It flies in the face of most companies, which still operate as fiefdoms. They took the critical next step: building management structures to support these integrated processes. First, they streamlined their core processes-combining related activities from different departments and eliminating ones that didn’t add value. How? These companies transformed themselves into process enterprises.

IBM reduced time-to-market by 75%-saving more than $9 billion. Texas Instruments shrank product launch time by 50%.