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Fitting IT Structure to Business Needs

Fitting IT Structure to Business Needs. Market Forces Increasing cost reduction focus Establishing the critical mass to tackle major enterprise initiatives Driving toward a single view of the customer. Market Forces Increasing business autonomy Need for rapid response and

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Fitting IT Structure to Business Needs

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  1. Fitting IT Structure to Business Needs • Market Forces • Increasing cost reduction focus • Establishing the critical mass to • tackle major enterprise • initiatives • Driving toward a single view of • the customer • Market Forces • Increasing business autonomy • Need for rapid response and • flexibility • Market fragmentation Centralized Decentralized • Strengths • Easier implementation of cross- • business unit applications and • architectures • Ability to drive economies of scale • Deeper specialization through • critical mass • Technical career mobility • Limitations • Tougher to stay aligned with • business in turbulent times • Cultural separatists • Strengths • Faster decision-making on IT • priorities • Stronger operating unit alignment • Improved business knowledge and • understanding • Limitations • Tougher to implement common • architecture

  2. Source: Gartner EXP

  3. Leverages both centralized and decentralized worlds Centralized architecture, standards, cross business unit & development projects Decentralized ownership and control: -development, projects, and staffing move to business units Mixed bag of cultures where IT may serve as buffer Federalist Model

  4. IT Vision & Leadership Scale Economies Leverage Standards & Tools Control Architecture Critical Mass of Skills Users conrol IT Priorities BU Ownership Responsive to BU's Needs Unresponsive No BU ownership No BU Control of Central Overhead $ Does NOT Meet Every BU Need Centralized IT - - + + Strategic Control Synergy FEDERAL IT Excessive $ to group Variable Standards of IT Competence Reinvention of Wheels No Synergy & Integration Decentralized IT

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