Dr. Oliver Laitenberger’s masterclass at the Die ideale Software-Factory für Finance & Insurance executive exchange provided a comprehensive exploration of the evolving role of IT organizations in the finance and insurance sectors. His insights centered on the transformation of traditional IT structures into highly efficient, agile, and business-aligned "software factories." Expanding on his ideas, we can analyze the key trends shaping modern IT organizations and how financial and insurance institutions can strategically implement them.
Dr. Laitenberger traced the journey of software development from a cost-centric, efficiency-driven discipline to a core driver of business value. Historically, IT in banks and insurance companies was seen primarily as an operational necessity—an enabler of business processes, rather than a strategic asset.
This perception began to shift with the rise of digital transformation. Financial and insurance firms recognized that software development could no longer be treated as a back-office function but had to be integrated into the core of their business models. The emergence of digital banking, insurtech, and AI-driven risk assessment has forced organizations to rethink their IT structures.
One of the key themes in Dr. Laitenberger’s talk was the Software Factory—a structured, scalable, and repeatable approach to software development that borrows principles from industrial manufacturing. Traditionally, IT organizations were structured in silos, with development and operations functioning as separate entities. This model optimized for specialization but often resulted in inefficiencies, long development cycles, and misalignment with business objectives.
By contrast, modern software factories emphasize:
Laitenberger highlighted that these principles are already being applied in large financial and insurance institutions, albeit at varying speeds. While some companies have fully embraced software factories, others are still in the transition phase.
One of the most profound organizational changes in IT is the shift from project-based development to product-based team structures. In the past, IT projects were typically temporary endeavors—teams were assembled to deliver a specific software product, and once the project was complete, the team disbanded. This approach, while useful in some contexts, often led to a loss of institutional knowledge and inefficient handovers.
In contrast, modern software organizations are moving toward persistent, cross-functional teams that maintain and evolve software products over time. These teams are not just responsible for writing code; they also oversee continuous improvements, user feedback, and operational stability.
For financial and insurance companies, this shift is particularly crucial. With regulatory frameworks, risk management concerns, and evolving customer expectations, maintaining long-term responsibility for software products ensures higher security, compliance, and adaptability to market changes.
Laitenberger pointed out that financial and insurance firms face a unique challenge: how to balance agility with stability. While technology companies like Google, Amazon, and Spotify have pioneered agile software development, banks and insurers operate in a far more regulated environment.
The traditional IT model in finance and insurance prioritizes:
However, the demand for digital innovation, faster customer service, and cost reductions has pushed these organizations to adopt agile principles. The key to success lies in balancing speed with structured governance models that ensure compliance without sacrificing innovation.
One approach is the creation of platform teams within IT organizations. These teams provide essential services—such as cloud infrastructure, security frameworks, and compliance monitoring—so that development teams can focus on building software without having to worry about operational constraints.
Many financial institutions have successfully introduced agile teams in specific areas, but the question remains: How do you scale agile methodologies across an entire IT organization? Laitenberger acknowledged that there is no "one-size-fits-all" approach. Some companies experiment with frameworks like SAFe (Scaled Agile Framework), while others develop their own models.
The key challenge is ensuring organizational alignment. Agile teams operate in networks, not traditional hierarchies, meaning that leadership must rethink how decision-making, funding, and resource allocation are structured. In many cases, this requires a cultural shift in how success is measured—not just by efficiency gains, but also by business impact.
To ensure that software factories deliver value, Laitenberger emphasized the importance of transparency and measurement. Traditional IT management often struggles with visibility into development workflows. Tools like software process mining and value stream mapping enable organizations to track how requirements move through the development pipeline, identify bottlenecks, and optimize delivery times.
By making software development measurable, financial and insurance companies can transition from treating IT as a cost center to viewing it as a value-generating function.
Laitenberger concluded that the transformation toward a software-driven financial industry is ongoing and will never be "complete." The emergence of AI, cloud-native architectures, and embedded finance will continue to reshape IT organizations. Companies that embrace the principles of agility, automation, and long-term team ownership will be best positioned to thrive in this new era.
For CIOs and IT leaders in finance and insurance, the message is clear: the software factory model is no longer an abstract concept—it is a necessity for maintaining competitive advantage. Organizations that fail to adapt will struggle with rising costs, slow innovation cycles, and increased risk exposure in an increasingly digital world.
By applying the principles discussed in Laitenberger’s masterclass, financial and insurance institutions can not only modernize their IT organizations but also drive business success through software excellence.
A Note to Our Readers: While I've done my best to represent the ideas shared by Dr. Oliver Laitenberger in his interesting masterclass, I still recommend to you that you watch the presentation below to understand the context and entirety of his ideas. If you have questions or concerns, do not hesitate to reach out to me.
