Organizing and Leading IT Function

8/3/2019 Organizing and Leading IT Function

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Organizing and Leadingthe ICT-function


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ResponsibilitiesProject management Direction Committee Steering Committee Project Group Working Groups

Management of the IT-department Centralized organization Decentralization


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The Direction CommitteeThe responsibility of the management :

The strategic planSet up a steering committeeProvide facilities


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The Steering committee

Responsibilities of the steering committee:

Define Basic Options programming environment ools hardwareCoherency between Strategic plan and IT-planBudgetFormal acceptance

- group of representative top level managers

- meet a few times a year


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Created by the steering committee for the lifetime of the project

Middle-managers and IT-people meeting frequently

Directed by a Project Leader

Responsibilities :

Project group

daily system follow-upbudget follow-upcreate ad-hoc working groups if neededreport to steering committee

Project meeting reports are crucial


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Working groupsAd-hoc working groups created to solve a specific problem or to make aspecific report disappear after completion of the job

Permanent working groups cooperate in all projects very specialized ( security, ergonomic, ... )


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Central IT - departmentIT-MGR

Finances

FunctionAnalysis

Technicalunits

Security

Help deskTraining

secretariat

Operations

Qualityassurance

department-1 Software devel. Operators

department-2 DBA job-preparation.. telecom librarian.department-n. operating system Production ctrl.


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IT Resource Management: pressuresPressure Towards centralization Towards Decentralization Towards DistributionManagement

control HierarchicalStandardizationEfficiencySecurity,reliability

EntrepreneurialUser responsivenessSimpler controlImprovement in local

reliability

InformationageLearningEfficiency, effectivenessGlobal security, reliability

Technology Efficient use of resourcesSpecialized, costly equipmentSpecialized operational skills

Efficient use of small scaleLow cost equipment

Efficient use of resourcesMix of specializedand off-the-shelf

Data Multiple access to commondataAssurance of data standardsSecurity control

Local dataFit with field needsData relevant to one branch

Need for information

sharingHigh capacity networks

IT professionals Availability of specialized staffReduced turnover disruptionRicher professional career

Generalized expertiseInterfunctional career paths Mix of professionalresourcesEnd-users Low technical skills

No IT motivation Technical sophisticationMotivated to manage IT High level of literacyHigh level of commitmentOrganizational fit Functional hierarchy

Command and control

IT centralized from startDecentralized profit centersResult culture

Matrix organizationCentralized anddecentralized resources


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Implications of too much DominanceIT Dominance Too much emphasis on DB andsystem maintenance

New systems must fit old datastructures Service requests require systemstudy and benefit analysis Standardization dominates IT designs/constructs everything Little user control on development IT specializing in technicalaspects, not in user business IT spends 80% on maintenance IT thinks they control everything Users express unhappiness General management notinvolved but concerned Development portfolio under ITcontrol

User Dominance Too much focus on problem IT feels out of control Explosive growth of numbers of systemsand related staff Multiple, often changing suppliers Lack of standardization and control overdata and systems Hard evidence of benefits nonexistent Soft evidence not organized Technical advise of IT not sought orconsidered irrelevant Buying services from outside Networks not designed for corporateneeds Little technology transfer Growth in duplication of technical staff Rising communication cost because ofduplication Duplication of effort and input


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Pressure towards user dominancePent-up user demand large backlog (3-5 years) due to sustained maintenance first created by conversion to data - program separation staffing problems due to high turnover user-developed systems speed up the process of obtaining the needed

service decentralized IT helps educate users, reduces communicationproblems rotation between IT and non-IT jobs possible decentralization facilitates user interface with network

Competitive and service growth in IT market specific applications marketed to end-user managers stand-alone local hardware platforms seem attractive to users seen as operationally simple ( no airco , one operator,...) no cumbersome project proposal to be written and defended projects developed under user control


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Pressure towards user dominanceUser control regaining control over operations is very important for users development

control over system development prioritiesown staff or self selected software housesmistakes made by local group are more easily acceptedsuccesses are topics of conversation

maintenanceusers get control over maintenance prioritiesassumption is that maintenance will not be a problem

operationsnot dependent on corporate computer schedulingFit with organization

Benefits can lead to less data hygiene and less regard for control


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Pressures toward IT controlStaff professionalism

specialized personnel supporting small divisionsgraying of IT , reason for outsourcing : easier with central ITdeveloping and enforcing standards of IT managementdocumentation, project management skillsdecentralization may drop professionalism

Feasibility study concernsusers can hardly estimate growing processing requirementsuser feasibility study focus on first applicationmore susceptible to acquire products from unstable vendorsnot enough concern to export developments to other depts


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Pressures toward IT controlCorporate Database Systemability to manage and control data flows

data integrity and consistencyabstraction of dataensure appropriate security

Fit with corporate structure and strategycentralized IT developments role clearest in organizations with acentralized planning and operational controldecentralized structure increases cost of central ITcentralized development groups have an explicit marketing activity (especially for multinationals )

Cost analysistakes into account the interest of the whole companysoftware costs 75-85% of total cost for a customized systemdecentralization avoids un-understandable bills but saving are false


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Coordination and location of IT policyIT responsibilities

procedures for comparison of own development and outsourcingdevelop standards for project control and documentationdefine a process for forcing adherence to these standards

inventory of installed or planned information servicesdevelop standards that establish:

mandatory communication standardsstandard programming environments for used platformscorporate data dictionaryauditing procedures for locally developed systems

identify and provide IT development staff career pathsestablish marketing efforts for IT supportprepare checklist with questions concerning HW/SW acquisition identify and maintain relationships with preferred system suppliersEducation programs for potential usersestablish ongoing review of systems to avoid obsolete systems


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Coordination and location of IT policyUser responsibilities

To assist in orderly implementation of new IT services, andunderstand their use, cost and impact understand the scope of all supporting IT activities, including charge-out realistically appraise personnel investment for development and operation ensure comprehensive user input for for all IT projects

nature of service, process of introduction, training create realistic IT-user interface , consistent with strategic relevance periodical audit of the adequacy of:system reliability standards

performance of communication servicessecurity procedures

participate in the development and maintenance of an IT plan


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Coordination and location of IT policyGeneral management support

Because of the need to link IT to business separation of: IT operations ( e.g. reporting to head of administration ) IT planning (e.g. IT policy group reporting to head of research)

ensure balance between IT and user inputs via eventual personnel andorganizational transfers and via a steering committeedevelop comprehensive corporate IT strategymanage inventory of hardware and software resources , including standardpolicy with vendorsfacilitate development and evolution of standards for operations anddevelopment , and make sure that they are appliedfacilitate transfer of technology between unitsencourage technical experimentationdevelop an appropriate planning and control system to link IT firmly to thecompany goals

Organizing and Leading IT Function

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