Center of Excellence – how to gain importance from scratch

Center of Excellence is a term that one might try to explain even without knowing anything about the matter. We associate the word “center” with a place where crucial actions and processes shall be conducted. Meanwhile, “excellence” is a state you can achieve by paying attention to every single detail. 

OK, enough with this wordplay. Let’s cut to the chase – what exactly is the Center of Excellence? Why it has gained importance throughout 2020? We invite you to find out.

Center of Excellence – definition

Center of Excellence (CoE) is a business division consisting of experts in numerous fields of knowledge. They include Internal Consulting, Business Analytics, Artificial Intelligence (AI), the Internet of Things (IoT), HR, Finance and Accounting, and many more. 

In the company structure, CoE works as a separate, independent unit placed above the respective specialization. The experts focus only on the current matters concerning their department, which is reflected in maximum efficiency and rewarding results.

In the beginning, the experts follow and analyze the newest trends. The next step is to select the right solution and introduce it to a parent company or a business partner. The main goal of this activity is to ensure the proper development of a company in many fields.

The idea of CoE is built on three foundations. CEO may collaborate with experts to run the business, grow the business, or transform the business. It all depends on the current priorities related to the business strategy and development phase.

Center of Excellence – benefits for IT

OK, now we know the clear definition of the Center of Excellence. Let’s add IT colors to the matter. What are the main benefits of introducing CoE to the world of software?

Software house might gain on many fronts by collaborating with CoE. Mainly, the profits include working on innovative technology, searching and developing IT talents, enhancement of workers’ competencies, introducing new business concepts, and many more. Thanks to that, a company can develop on multiple platforms simultaneously.

According to the PwC survey, the essential connection between CoE and innovation is noticed by 44% of IT companies’ CEOs. They claim that the irregular growth of their business is caused by the lack of experts’ influence. Undoubtedly, direct access to professional opinions is bound to result in fulfilling a company’s potential.

Working with CoE leads to taking develop strategic solutions quickly and putting them in place ahead of the competition. Apart from that, all resources are used in a more efficient way as hired experts stand out in terms of knowledge, skills, and experience. 

How to build a successful Center of Excellence?

There are three aspects important for the well-functioning Center of Excellence

  1. Standardization – services and solutions offered by CoE should be a response to constant changes in particular areas of their work. There are several benefits coming from this process. They include the harmonization of services under any circumstances,  forming a scheme of operation, and cost optimization.
  2. Human assets – it is advisable to select the experts carefully. The main values among them are unique skillset, authority, experience, and a can-do attitude. It is also crucial for the CoE members to have contact with influential units outside the company – the results are a growing number of customers, business relationships, etc.
  3. Independence – it is also important to keep in mind that CoE members should not be included in any ongoing projects. Their main challenge is to provide templates of activity. It is a project manager’s task to adapt it to a particular operation. The CoE’s competencies are limited to the guidance of a project, sometimes being in charge of it. However, the implementation of changes belongs to lower-level departments.


Considering all the potential benefits coming from starting a Center of Excellence in your company, it is worth a shot. You ensure proper business development by a group of many well-qualified individuals. Especially the current situation considering the COVID-19 pandemic requires thoughtful management. CoE experts are on to provide a fresh look at any ongoing issue. 

Have any more questions? More than that, do you feel like building the one with us? Feel free to contact us.