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Case Overview

This case describes the evolution of IT management at Alcan during the period from 2006-2007. At
that time, IT governance and the IT function itself were undergoing a complete transformation. The
case follows the Vice-President of Corporate Information Technology from the time of his arrival at
Alcan: his observations on the current state of IT management, his appointment to the position of
Chief Information Officer and the development of his new strategic plan for IT management
Company Overview
Alcan is a 68000 employee company operating in 61 countries with $23.6 Billion Revenue .It has a
wide product range ranging from can sheet to iron for cars.
The IT department was facing problem due to higher cost, large no of networks, each business unit
having their own set of SAP leading to inefficient business system. With the elevation of Robert to
the CIO, following strategic steps have been taken to improve the IT health of the company.
 Moving to Centralisation IT system with standardised structure, application & infrastructure
across the business unit
 Restructuring of Organisational hierarchy chart so that IT heads of different Business units
will report to CIO along with their respective Vertical heads.
 Filling of vacant IT Posts through new recruitment and aligning them with the company’s
Global IT mission
Structure Of Corporate IT
Architecture Group: 3 resources, High Technical skills, but of the infrastructure planning and shared
infrastructure services group
Infrastructure Planning Group: 16 resources, Planning improvements to technological infrastructure
and technical architecture design for new applications, Skills corresponding to the needs of the
Architecture and Infrastructure Shared Services groups

GOVERNANCE
Single Formal Decision Making Body, Enterprise-wide IT
Committees, Convergence of IT Reporting Lines,Strategic IT
Planning, Budgeting, and Prioritizing
•Tracking of Enterprise IT Metrics

RESPONSIVENESS
Accommodation of Sectoral/Regional Specificity,Alignment of IT to Enterprise Structure,Formal
Business-IT Interfacing Roles,Establishment of Regional IT SupportSmall IT Groups within Business unit

SCALED
Data Consolidation, Standardization, and Integration, Applications Consolidation, Standardization,
and Integration, Infrastructure Consolidation, Standardization, and Integration
•Centralization of IT Operations

Open Innovation Moving Forward  To tackle French labour laws Robert needs to produce customized applications  The inertia at the user level to adopt the new centralized system is one of the major challenge  Robert needs to execute training at the different hierarchy level based on the skill  Another challenge will be Stability of Application version created tension between user community and support team for the first 18-24 months . IT Interaction with Innovative Business Units. Formal IT Innovation Roles or Units. Centers of Excellence.INNOVATION Accommodation of Many Small and differentiated IT Environments.