organization for euc
DESCRIPTION
Organization for EUC. Practices for managing an architecture in which programmers do not report to IS. Business Within a Business. Most firms manage IT as a business within the business, with IT having its own career paths job descriptions personality profiles. Aligning IT with the Business. - PowerPoint PPT PresentationTRANSCRIPT
Organization for EUC
Practices for managing an architecture in which programmers do not report to IS
Business Within a Business
Most firms manage IT as a business within the business, with IT having its own
career pathsjob descriptionspersonality profiles
Aligning IT with the Business
TechnologyExcellence(Systems)
Business Profitability(Applications)
IT
User
Organization Structures
ContractorFormal agreements for services
UtilityReliable information in standard form
VendorIS recommends solutions for business problems
PartnerIS and Line share responsibilities for success
Organizational Structures
Technology Need
Non technology need
Contractor
Utility
VendorPartner
Contractor
The traditional organization for IS units in the mainframe era.
Service level agreementsNegotiated servicesFormal separation between users
and technical personnel
Contractor
IT BusinessUsers
Negotiation
Contractor
Example: outsourcing.While this model describes the internal structure for many firms, it is the model for any functions that are outsourced. (See: Clermont, ‘Outsourcing without guilt’, MoIS, #5.4).
UtilityHopper, HBR, 1990
IS provides common interface among business units. Common structure in client/server architectures.
Is responsible for standard data or software; users responsible for business use.
IS monopolyBusiness units are the innovators
Utility
Support
IT BusinessUser
Utility
Example: cost centers.IS units set up as standard interfaces among relatively independent business units.
VendorQuinn & Paquette, Sloan MR, 1990
IS competes with outside services for resources. Acts as internal consultants.
IS responsible for understanding business tactics
User accepts IS proposals
Vendor
BusinessUser
IT
Sell
Vendor
Example: profit centers. Organizations that emulate consulting firms and set up their IS organization as a separate profit center do this. IS competes for funding dollars against outside organizations. (See: Allen, Make IS pay its way, MoIS #5.7)
PartnerHenderson, Sloan MR, 1990
IS tightly integrated with business strategy. Most common in high tech businesses.
Users and IT consult on both technology and business solutions
Shared rewards for business success or failure.
Partner
Business User
IT
Share
Partner
Example: distributed resources. Many companies have distributed IT personnel into business units so that the IT function would report directly to the business unit manager.
Relationship Choice
ContractUtilityVendorPartnerThe appropriate relationship depends on
the business strategy of the company, the maturity of the organization and the experience with IT
Business Strategy
Type A: seeks to obtain business advantage from the use of technology
Type B: uses technology for business advantage, although possibly not IT, and is comfortable paying for quality
Type C: seeks to compete on a commodity or cost containment basis
Four Stages of EDP GrowthGibson & Nolan, Managing the four stages of EDP growth, HBR, 1974
1. Initiation: new concept, exploring ways to use the technology. No control.
2. Expansion: some applications found, need to get people on board.
3. Formalization: costs become and issue. Effective controls developed.
4. Maturity: technology well integrated and managed.
Managerial Tactics
Laissez FaireMonopolistAccelerationMarketingOperations
Alavi, Nelson, Weiss, JMIS,
Organization: Centralization, Decentralization or Distribution
Centralization Consolidation of functions Career paths for IS professionals Information control Economies of scale
Organization: Centralization, Decentralization or Distribution
Decentralization Closeness to local problems Responsiveness to operational
requirements User ownership of costs and problems
Organization: Centralization, Decentralization or Distribution
Distribution Separation of IS and user functions Identification of corporate data and
functions User ownership of user applications
People
IT Motivational ProfileRecruiting and RetentionTeams and Projects
Rational Retention Strategies
Recruit and RetainRecruit and ReplaceOutsourceEntrepreneur SupportControl and LimitRaid for experience
Reorganization Trends
Outsourcing Purchased systems Core competencies
Reengineering Downsizing and flattening Global competition Reduced margins
TQM
Critical Success FactorsBoynton & Zmud, An assessment of critical success factors, HBR, 1984
Those few things that must go well to ensure success
Require continued monitoringMeasurableCover business requirements
IT Business