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MIS 5202 – IT Governance 

MIS 5202 – IT Governance  Sukhi Bedi – Chenyu Gong Fola Oyediran – Joelle Quiapo – Greg Swenson. Case Summary / IT Summary. 1000 Info Systems; 400 handle Financial Data Lack of centralized documentation IT Governance Model – 7 yrs old; no review

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MIS 5202 – IT Governance 

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  1. MIS 5202 – IT Governance SukhiBedi – Chenyu GongFolaOyediran – Joelle Quiapo – Greg Swenson

  2. Case Summary / IT Summary • 1000 Info Systems; 400 handle Financial Data • Lack of centralized documentation • IT Governance Model – 7 yrs old; no review • Annual Costs (including hidden costs; $100M) • Decentralized corporate IT function (5 sectors, 136 resources, 12 sites) • Heavy outsourcing (80% - total annual budget) • Lack of defined roles, lack of management structure • Autonomy; uncoordinated projects and initiatives (3 SAP Projects- $500M)

  3. Weill and Ross Matrix

  4. Weill and Ross Matrix

  5. Strengths & Challenges STRENGTHS CHALLENGES Over 1000 Info Systems; 400 handle Financial Data Lack of centralized documentation and centralized IT management system Financial and managerial information- manually inputted IT Governance Model – 7 yrs old; no review Annual Costs (including hidden costs; $100M) Decentralized corporate IT function (5 sectors, 136 resources, 12 sites) Heavy outsourcing (80% - total annual budget) Lack of defined roles, lack of management structure (vacant corporate IT position; 1 yr) Autonomy; uncoordinated projects and initiatives (3 SAP Projects- $500M) • Global market / strong business focus • Large employee base- 68,000 in 61 countries • Annual revenue US $23.6 billion in 2006 • Wide variety of products: ie bauxite, smelter-grade alumina, sheet ingot, extrusion billet, wire ingot, forging stock, beverage sheet, automobile iron… • Desire to manage IT as a coordinated function across the entire company • Desire to initiate integration; fired 5 employees • Desire method(s) to track “real cost”= return on investments • Previous IT consultant / First-name basis

  6. Contributing Factors • Lack of governance • Lack of leadership • Lack of centralized IT systems • Lack of enterprise vision • Rapid Growth / Acquisitions

  7. New IT Organization Goals of the new IT Organization? • Global Strategy • Centralized Vision of IT • What (should) stay decentralized? • Decreased Outsourcing • Unified Project Management team • Needs vs. Resources • Financial Accountability / Overall Cost

  8. New Governance Model Strengths: • Senior management now had IT on their priorities • Engineered product & packaging groups now on SAP (to reduce diversity) • Progress in standardizing & consolidation of IT infrastructure Recommendations: • IT governance should be reviewed more frequently and according to audit charter • Ex. Quarterly or Annually • Save costs on outsourcing / reduce outsourcing • Implement an Enterprise Architecture Practice • Multiple acquisitions; Alcan should consider divesting off some business areas

  9. Future of IT at Alcan Governance • A clear structure and governance model • Defined Role of VP & Others • Centralized management IT Strategy • Overall architecture • Managed as a coordinated function • Reduce system diversity • Financial IT Management • Human resource • Sourcing • Quality Management

  10. Conclusion • What really happened to Alcan… • Questions ?

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