Organizing and Leading the ICT-function

1. Organizing and Leadingthe ICT-function

3. Responsibilities • Project management • Direction Committee • Steering Committee • Project Group • Working Groups • Management of the IT-department • Centralized organization • Decentralization

4. The Direction Committee • The strategic plan • Set up a steering committee • Provide facilities The responsibility of the management :

5. The Steering committee • Define Basic Options • programming environment • tools • hardware • Coherency between Strategic plan and IT-plan • Budget • Formal acceptance - group of representative top level managers - meet a few times a year Responsibilities of the steering committee:

6. Project group • daily system follow-up • budget follow-up • create ad-hoc working groups if needed • report to steering committee Project meeting reports are crucial Created by the steering committee for the lifetime of the project Middle-managers and IT-people meeting frequently Directed by a Project Leader Responsibilities :

7. Working groups • Ad-hoc working groups • created to solve a specific problem or to make a specific report • disappear after completion of the job • Permanent working groups • cooperate in all projects • very specialized ( security, ergonomic, ... )

8. Central IT - department department-1 Software devel. Operators department-2 DBA job-preparation . . telecom librarian . department-n. operating system Production ctrl. IT-MGR Finances secretariat Function Analysis Technical units Operations Quality assurance Security Help desk Training

9. IT Resource Management: pressures Pressure Towards centralization Towards Decentralization Towards Distribution Management Hierarchical Entrepreneurial Information age control Standardization User responsiveness Learning Efficiency Simpler control Efficiency, effectiveness Security,reliability Improvement in local Global security, reliability reliability Technology Efficient use of resources Efficient use of small scale Efficient use of resources Specialized, costly equipment Low cost equipment Mix of spe cialized Specialized operational skills and off - the - shelf Data Multiple access to common Local data Need for information data Fit with field needs sharing Assurance of data standards Data relevant to one branch High capacity networks Security control IT professionals Availabil ity of specialized staff Generalized expertise Mix of professional Reduced turnover disruption Interfunctional career paths resources Richer professional career End - users Low technical skills Technical sophistication High level of literacy No IT motivation Motivated to mana ge IT High level of commitment Organizational fit Functional hierarchy Decentralized profit centers Matrix organization Command and control Result culture Centralized and IT centralized from start decentralized resources

10. IT Dominance Too much emphasis on DB and system maintenance New systems must fit old data structures Service requests require system study and benefit analysis Standardization dominates IT designs/constructs everything Little user control on development IT specializing in technical aspects, not in user business IT spends 80% on maintenance IT thinks they control everything Users express unhappiness General management not involved but concerned Development portfolio under IT control User Dominance Too much focus on problem IT feels out of control Explosive growth of numbers of systems and related staff Multiple, often changing suppliers Lack of standardization and control over data and systems Hard evidence of benefits nonexistent Soft evidence not organized Technical advise of IT not sought or considered irrelevant Buying services from outside Networks not designed for corporate needs Little technology transfer Growth in duplication of technical staff Rising communication cost because of duplication Duplication of effort and input Implications of too much Dominance

11. Pressure towards user dominance • Pent-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 communication problems • 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

12. Pressure towards user dominance • User control • regaining control over operations is very important for users • development • control over system development priorities • own staff or self selected software houses • mistakes made by local group are more easily accepted • successes are topics of conversation • maintenance • users get control over maintenance priorities • assumption is that maintenance will not be a problem • operations • not dependent on corporate computer scheduling • Fit with organization Benefits can lead to less data hygiene and less regard for control

13. Pressures toward IT control • Staff professionalism • specialized personnel supporting small divisions • graying of IT , reason for outsourcing : easier with central IT • developing and enforcing standards of IT management • documentation, project management skills • decentralization may drop professionalism • Feasibility study concerns • users can hardly estimate growing processing requirements • user feasibility study focus on first application • more susceptible to acquire products from unstable vendors • not enough concern to export developments to other depts

14. Pressures toward IT control • Corporate Database System • ability to manage and control data flows • data integrity and consistency • abstraction of data • ensure appropriate security • Fit with corporate structure and strategy • centralized IT development’s role clearest in organizations with a centralized planning and operational control • decentralized structure increases cost of central IT • centralized development groups have an explicit marketing activity ( especially for multinationals ) • Cost analysis • takes into account the interest of the whole company • software costs 75-85% of total cost for a customized system • decentralization avoids un-understandable bills but saving are false

15. Coordination and location of IT policyIT responsibilities • procedures for comparison of own development and outsourcing • develop standards for project control and documentation • define a process for forcing adherence to these standards • inventory of installed or planned information services • develop standards that establish: • mandatory communication standards • standard programming environments for used platforms • corporate data dictionary • auditing procedures for locally developed systems • identify and provide IT development staff career paths • establish marketing efforts for IT support • prepare checklist with questions concerning HW/SW acquisition • identify and maintain relationships with preferred system suppliers • Education programs for potential users • establish ongoing review of systems to avoid obsolete systems

16. Coordination and location of IT policyUser responsibilities To assist in orderly implementation of new IT services, and understand 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 services • security procedures • participate in the development and maintenance of an IT plan

17. 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 and organizational transfers and via a steering committee • develop comprehensive corporate IT strategy • manage inventory of hardware and software resources , including standard policy with vendors • facilitate development and evolution of standards for operations and development , and make sure that they are applied • facilitate transfer of technology between units • encourage technical experimentation • develop an appropriate planning and control system to link IT firmly to the company goals