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IT Organization

Managing the Information Technology Resource

IT Organization
A Little History

IT Organization
The Organizational Environment
External forces cause firms to reexamine how they compete:
Internet Economy Globalization Business Ecosystems Decapitalization Faster Business Cycles Greater Transparency and Accountability
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IT Organization
The Organizational Environment
Internal structural forces affect how companies 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

IT Organization
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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IT Organization
The Technology Environment

Hardware Trends

Moving Toward Wireless


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IT Organization
The Technology Environment

Software Trends

Network-centric
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IT Organization
The Technology Environment

Data Trends

Move Towards Content


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IT Organization
The Technology Environment

Communication Trends

Internet-centric Telecom
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IT Organization
A Simple Model

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IT Organization
A Better Model

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IT Organization
Case Example: Mead Corporation

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IT Organization
Case Example: Mead Corporation

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IT Organization
Case Example: Mead Corporation

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IT Organization

IT Function Aspect Dimention

IT Function Frame

IT Function Frame

Tipe Organisasi

Organisasi Virtual (Extended Enterprise)

Traditional IT Organizational Firms


Consulting
Planning and managing of projects/services with business

Development
Design, programming, and delivery of systems

Service Units
Includes operational elements

Traditional IT Organizational Firms

Centralized IT
Single IT group allows for sharing expertise and learning Clear career paths and training programs Managed skill redundancy with capable staff Expert managers familiar with projects carry out employee evaluations Standards can be readily defined

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

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 and out of IT

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 not firm

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

Special Project Department

Horizontal Layout

Vertical Layout

Balanced Layout

Priorities at Different Stage

Recommended IT Structure Layout

IT Department Main Section

Sample Preliminary Chart

Comprehensive Chart