QuestionQ21

Create, deliver and support services

A small food retail chain was established twenty years ago. At that time, its internal IT team developed and maintained stock-management and point-of-sale (POS) software. Today, the chain uses commercially available off-the-shelf software for stock management and POS.

What is this situation an example of?

Explanation

Commoditization occurs when a capability becomes standardized and broadly available as a commercial product, reducing the need for an organization to develop and maintain its own bespoke solution. Stock-management and POS software are being obtained as off-the-shelf products rather than internally built systems.

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