Consultancies and capabilities in innovating with IT

When firms innovate with information technology (IT), they frequently retain consultants, who presumably bring certain capabilities to the process. But what capabilities are these and why do they seem to be so needed? In this essay, I consider several different consultancy specializations – business strategy, technology assessment, business process improvement, systems integration, business support services – and how they facilitate an IT innovation process both within and across firms. For each specialization, I examine the consultancy’s capabilities and contributions both to the client (within an engagement) and to the broader support of the innovation (across and beyond engagements). The analysis suggests a number of conjectures as to the influence of consultancies on an IT innovation’s adoption, diffusion and eventual institutionalization.