organizing and leading the ict-function. responsibilities project management direction committee ...
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Responsibilities
Project managementDirection CommitteeSteering CommitteeProject GroupWorking Groups
Management of the IT-department Centralized organizationDecentralization
The Direction Committee
The responsibility of the management :
The strategic plan
Set up a steering committee
Provide facilities
The Steering committee
Responsibilities of the steering committee:
Define Basic Options programming environment tools hardware
Priorities Budget Formal acceptance
- group of representative top level managers
- meet a few times a year
Created by the steering committee for the lifetime of the project
Middle-managers and IT-people meeting frequently
Directed by a Project Leader
Responsibilities :
Project group
daily system follow-up budget follow-up create ad-hoc working groups if needed report to steering committee
Project meeting reports are crucial
Working groups
Ad-hoc working groups created to solve a specific problem or to make a
specific reportdisappear after completion of the job
Permanent working groupscooperate in all projectsvery specialized ( security, ergonomic, ... )
Central IT - department
IT-MGR
Finances
FunctionAnalysis
Technical units
Security
Help deskTraining
secretariat
Operations
Qualityassurance
department-1 Software devel. Operators
department-2 DBA job-preparation
.
. telecom librarian
.
department-n. operating system Production ctrl.
Implications of too much Dominance
IT Dominance Too much emphasis on DB and
system maintenance New systems must fit old data
structures Service requests require system
study and benefit analysis Standardization dominates IT designs/constructs everything Little user control on development IT specializing in technical aspects,
not in user business IT spends 80% on maintenance IT thinks they control everything Users express unhappiness General management not involved
but concerned Development portfolio under IT
control
User Dominance Too much focus on problem IT feels out of control Explosive growth of numbers of
systems and related staff Multiple, often changing suppliers Lack of standardization and control
over data and systems Hard evidence of benefits nonexistent Soft evidence not organized Technical advise of IT not sought or
considered irrelevant Buying services from outside Networks not designed for corporate
needs Little technology transfer Growth in duplication of technical staff Rising communication cost because of
duplication Duplication of effort and input
Pressure towards user dominance Pent-up user demand
large backlog (3-5 years) due to sustained maintenancefirst created by conversion to data - program separationstaffing problems due to high turnoveruser-developed systems speed up the process of obtaining the needed
servicedecentralized IT helps educate users, reduces communication problemsrotation between IT and non-IT jobs possibledecentralization facilitates user interface with network
Competitive and service growth in IT market specific applications marketed to end-user managersstand-alone local hardware platforms seem attractive to usersseen as operationally simple ( no airco , one operator,...)no cumbersome project proposal to be written and defendedprojects developed under user control
Pressure towards user dominance User control
regaining control over operations is very important for users development
• control over system development priorities
• own staff or self selected software houses
• mistakes made by local group are more easily accepted
• successes are topics of conversation maintenance
• users get control over maintenance priorities
• assumption is that maintenance will not be a problem operations
• not dependent on corporate computer scheduling Fit with organization
Benefits can lead to less data hygiene and less regard for control
Pressures toward IT control
Staff professionalism• specialized personnel supporting small divisions• graying of IT , reason for outsourcing : easier with central IT• developing and enforcing standards of IT management • documentation, project management skills• decentralization may drop professionalism
Feasibility study concerns• users can hardly estimate growing processing requirements• user feasibility study focus on first application• more susceptible to acquire products from unstable vendors• not enough concern to export developments to other depts
Pressures toward IT control
Corporate Database System• ability to manage and control data flows• data integrity and consistency• abstraction of data• ensure appropriate security
Fit with corporate structure and strategy• centralized IT development’s role clearest in organizations with a
centralized planning and operational control• decentralized structure increases cost of central IT• centralized development groups have an explicit marketing activity
( especially for multinationals ) Cost analysis
• takes into account the interest of the whole company• software costs 75-85% of total cost for a customized system• decentralization avoids un-understandable bills but saving are false
Coordination and location of IT policy
IT responsibilities
procedures for comparison of own development and outsourcing • develop standards for project control and documentation• define a process for forcing adherence to these standards
inventory of installed or planned information servicesdevelop standards that establish:
• mandatory communication standards• standard programming environments for used platforms• corporate data dictionary• auditing procedures for locally developed systems
identify and provide IT development staff career pathsestablish marketing efforts for IT supportprepare checklist with questions concerning HW/SW acquisitionidentify and maintain relationships with preferred system suppliersEducation programs for potential usersestablish ongoing review of systems to avoid obsolete systems
Coordination and location of IT policy
User responsibilities
To assist in orderly implementation of new IT services, and understand their use, cost and impact
understand the scope of all supporting IT activities, including charge-out
realistically appraise personnel investment for development and operation
ensure comprehensive user input for for all IT projects
• nature of service, process of introduction, training create realistic IT-user interface , consistent with strategic relevance
periodical audit of the adequacy of:
• system reliability standards
• performance of communication services
• security procedures
participate in the development and maintenance of an IT plan
Coordination and location of IT policy
General management support
Because of the need to link IT to business separation of:IT operations ( e.g. reporting to head of administration ) IT planning (e.g. IT policy group reporting to head of research)• ensure balance between IT and user inputs via eventual personnel and
organizational transfers and via a steering committee
• develop comprehensive corporate IT strategy
• manage inventory of hardware and software resources , including standard policy with vendors
• facilitate development and evolution of standards for operations and development , and make sure that they are applied
• facilitate transfer of technology between units
• encourage technical experimentation
• develop an appropriate planning and control system to link IT firmly to the company goals
Results control architecture 1. Unallocated cost center
stimulates user requests and experimentation
easy for IT to sell services
risk of irresponsible user requests for services
no competitive pressure on IT
keep free of charge but inform users about cost
Results control architecture2. Allocated cost center and charge-out
Stimulates honestety in user requests in later phases Allocation problems
charges compared with outside offerings : misleading nothing achieved by 100% charge-out ( create barrier) unpredictable , unstable charges for users ( machine load ) very complex systems
Desirable characteristics understood by users ( better on output than on real usage) perceived as fair
IT maintenance and development charges estimate costs by IT department procedure for reestimating time and material basis
Results control architecture3. Profit Center
Puts inside service at same footing of an outside one
Pressure on IT for cost efficiency IT must market itself Excess capacity encourages sales of services to outside
companies those sales are unprofitable exited by hard outside dollars
because of shared files, user have not always the option of going outside ( not subject to normal market forces)
leads to higher users costs because of profit figure
Results control architecture4. Transfer Pricing
IT operations priced in end-user transaction terms IT development and maintenance as fixed-price contract
Cost-based price lowest cost from user’s perspective complex , difficult to understand charges
Market-based price difficult to find comparable products
Dual Transfer Price allows IT and user to be motivated users are charged items at direct or full cost IT is allocated revenue based on standard cost of services. IT
revenues via selling more services or better cost efficiencies difference posted to an overhead expense account
Negotiated price difficult in IT because of non-equal partners
Financial reporting process
Budget process
must involve senior mgt , IT mgt , user groups output includes:
establish planned service levels cost of central operations amount of internal development and maintenance support external services
derived from review of : existing services approved application development portfolio user desire for new services
need for appropriate control on purchased IT services dialog helps generate a user understanding of IT goals
Non-financial reporting process
preparation of six-month surveys identify problems provide a benchmark to measure progress to show concern of IT for about user perception of service
Staff reports turnover trends sensitivity of leadership salary levels workplace climate
Other reports trends in network uptime ability to meet schedules on batch jobs average response times