MIS 5202 – IT Governance

Sukhi Bedi – Chenyu Gong
Fola Oyediran – Joelle Quiapo – Greg Swenson

• 1000 Info Systems; 400 handle Financial Data
• Lack of centralized documentation
• IT Governance Model – 7 yrs old; no review
• Annual Costs (including hidden costs; $100M)
• Decentralized corporate IT function (5 sectors, 136 resources, 12 sites)
• Heavy outsourcing (80% - total annual budget)
• Lack of defined roles, lack of management structure
• Autonomy; uncoordinated projects and initiatives (3 SAP Projects- $500M)

IT Decision
Business
Monarchy
IT
Monarchy
Feudal Federal Duopoly Anarchy
Principles
Architecture
Infrastructure
Business
Applications
Investment

IT Decision
Principles
Architecture
Infrastructure
Business
Applications
Investment
Business
Monarchy
IT
Monarchy
Feudal Federal Duopoly Anarchy
X
X
X
X
X

STRENGTHS CHALLENGES
• Global market / strong business focus
• Large employee base- 68,000 in 61 countries
• Annual revenue US $23.6 billion in 2006
• Wide variety of products: ie bauxite, smelter-grade alumina, sheet ingot, extrusion billet, wire ingot, forging stock, beverage sheet, automobile iron…
• Desire to manage IT as a coordinated function across the entire company
• Desire to initiate integration; fired 5 employees
• Desire method(s) to track “real cost”= return on investments
• Previous IT consultant / First-name basis
• Over 1000 Info Systems; 400 handle Financial Data
• Lack of centralized documentation and centralized IT management system
• Financial and managerial informationmanually inputted
• IT Governance Model – 7 yrs old; no review
• Annual Costs (including hidden costs; $100M)
• Decentralized corporate IT function (5 sectors, 136 resources,
12 sites)
• Heavy outsourcing (80% - total annual budget)
• Lack of defined roles, lack of management structure ( vacant corporate IT position; 1 yr )
• Autonomy ; uncoordinated projects and initiatives (3 SAP
Projects- $500M)

• Lack of governance
• Lack of leadership
• Lack of centralized IT systems
• Lack of enterprise vision
• Rapid Growth / Acquisitions

• Global Strategy
• Centralized Vision of IT
• What (should) stay decentralized?
• Decreased Outsourcing
• Unified Project Management team
• Needs vs. Resources
• Financial Accountability / Overall Cost

Strengths:
• Senior management now had IT on their priorities
• Engineered product & packaging groups now on SAP (to reduce diversity)
• Progress in standardizing & consolidation of IT infrastructure
Recommendations:
• IT governance should be reviewed more frequently and according to audit charter
• Ex. Quarterly or Annually
• Save costs on outsourcing / reduce outsourcing
• Implement an Enterprise Architecture Practice
• Multiple acquisitions; Alcan should consider divesting off some business areas

Governance
• A clear structure and governance model
• Defined Role of VP & Others
• Centralized management
IT Strategy
• Overall architecture
• Managed as a coordinated function
• Reduce system diversity
• Financial
IT Management
• Human resource
• Sourcing
• Quality Management

• What really happened to Alcan…
• Questions ?