Organization for EUC

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