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Organization for EUC

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.

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Organization for EUC

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  1. Organization for EUC Practices for managing an architecture in which programmers do not report to IS

  2. 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

  3. Aligning IT with the Business Technology Excellence (Systems) IT User Business Profitability (Applications)

  4. Organization Structures • Contractor Formal agreements for services • Utility Reliable information in standard form • Vendor IS recommends solutions for business problems • Partner IS and Line share responsibilities for success

  5. Organizational Structures Technology Need Partner Vendor Utility Contractor Non technology need

  6. Contractor The traditional organization for IS units in the mainframe era. • Service level agreements • Negotiated services • Formal separation between users and technical personnel

  7. Contractor IT Business Users Negotiation

  8. 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).

  9. 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 monopoly • Business units are the innovators

  10. Utility Business User IT Support

  11. Utility Example: cost centers. IS units set up as standard interfaces among relatively independent business units.

  12. 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

  13. Vendor Business User IT Sell

  14. 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)

  15. 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.

  16. Partner IT Business User Share

  17. 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.

  18. Relationship Choice • Contract • Utility • Vendor • Partner The appropriate relationship depends on the business strategy of the company, the maturity of the organization and the experience with IT

  19. 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

  20. 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.

  21. Managerial Tactics • Laissez Faire • Monopolist • Acceleration • Marketing • Operations Alavi, Nelson, Weiss, JMIS,

  22. Organization: Centralization, Decentralization or Distribution • Centralization • Consolidation of functions • Career paths for IS professionals • Information control • Economies of scale

  23. Organization: Centralization, Decentralization or Distribution • Decentralization • Closeness to local problems • Responsiveness to operational requirements • User ownership of costs and problems

  24. Organization: Centralization, Decentralization or Distribution • Distribution • Separation of IS and user functions • Identification of corporate data and functions • User ownership of user applications

  25. People • IT Motivational Profile • Recruiting and Retention • Teams and Projects

  26. Rational Retention Strategies • Recruit and Retain • Recruit and Replace • Outsource • Entrepreneur Support • Control and Limit • Raid for experience

  27. Reorganization Trends • Outsourcing • Purchased systems • Core competencies • Reengineering • Downsizing and flattening • Global competition • Reduced margins • TQM

  28. Critical Success FactorsBoynton & Zmud, An assessment of critical success factors, HBR, 1984 Those few things that must go well to ensure success • Require continued monitoring • Measurable • Cover business requirements

  29. IT Business

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