IT Organization Managing the Information Te chnolo g y Resou r ce
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IT Organization
Managing the Information
Technology Resource
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A Little History
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The Organizational Environment
External forces cause firms toreexamine how they compete:
Internet Economy Globalization
Business Ecosystems
Decapitalization
Faster Business Cycles
Greater Transparency and Accountability
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The Organizational Environment
Internal structural forces affect howcompanies operate:
Demand-pull
Customer centricity
Self-service
Real-time working
Team-based working Anytime/anyplace information work
Outsourcing and strategic alliances
The demise of hierarchy
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The Organizational Environment
Goals of the New Work Environment
•Leveraging knowledge globally
•Organizing for complexity
• Working electronically
•Handling continuous and discontinuous
change.
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The Technology Environment
Hardware Trends
Moving Toward Wireless
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The Technology Environment
Software Trends
Network-centric
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The Technology Environment
Data Trends
Move Towards Content
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The Technology Environment
Communication Trends
Internet-centric Telecom
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A Simple Model
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A Better Model
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Case Example: Mead Corporation
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Case Example: Mead Corporation
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Case Example: Mead Corporation
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IT Organization
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IT Function Aspect Dimention
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IT Function Frame
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IT Function Frame
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Tipe Organisasi
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Organisasi Virtual (Extended Enterprise)
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Traditional IT Organizational Firms
• Consulting
– Planning and managing of projects/serviceswith business
• Development
– Design, programming, and delivery of systems
• Service Units– Includes operational elements
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Traditional IT Organizational Firms
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Centralized IT
• Single IT group allows for sharing
expertise and learning• Clear career paths and training programs
• Managed skill redundancy with capablestaff
• Expert managers familiar with projectscarry out employee evaluations
• Standards can be readily defined
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Drawbacks of Centralization
• Unresponsive to individual business unit
needs• No one in centralized area understands
business area• Centralized organization can become
insular and unaware
• Tendency for firm to become “ivory tower”
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Decentralized IT
• Individual business areas own, fund, and
determine priorities• IT professionals are experts in business
area• Priorities set within business unit
• Funding provided by business unit
• Potential career path within business andout of IT
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Drawbacks of Decentralized IT
• May create huge redundancies
• Career path within IT is limited• IT department will operate for local
business area• Integrations and adhered to standards are
hard
• Loyalties develop to business area and notfirm
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Benefits of Federated IT Model
• Can deliver strategic alignment needed for
most effective use• Maintains close interaction with business
• Provides IT with large, talented peer group
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Special Project Department
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Special Project Department
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Horizontal Layout
Vertical Layout
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Vertical Layout
Balanced Layout
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Balanced Layout
Priorities at Different Stage
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Priorities at Different Stage
Recommended IT Structure Layout
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Recommended IT Structure Layout
IT Department Main Section
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IT Department Main Section
Sample Preliminary Chart
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Sample Preliminary Chart
Comprehensive Chart
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