Organizing and leading the IT function
Two set of tensions guide policies for developing, deploying
and managing IT systems.
1. Innovation and control
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How aggressive innovation should be depends on
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Strategic impact of IT
Management’s willingness to take risks (some mgrs are risk averse)
Short term vs long-term focus
a.
User tend to focus on short-term need fulfillment
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At the expense of long-term architectural concerns
Maintenance needs
Orderly deployment
IT department tends to be preoccupied with
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Standardization of solutions
Mastery of technology
Maintenance difficulties
Orderly but often slow deployment
There should be proper balance between innovation and stability and
degree of control by user group and IT group
What happens when IT group or user-group
dominates over IT allocation and project priorities
IT dominance
User dominance
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too much emphasis on database
and system maintenance
All new systems must fit existing
data structures
Standardization dominates mostly
IT designs/builds everything
Benefits of user control discussed
but never implemented
Tend to avoid outsourcing
IT spending 80% on maintenance
and 20% on development
Unhappy users
IT selects project portfolios
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Too much emphasis on problem
IT feels out of control
Too many new systems & support staff
Multiple vendors
Lack of standards
Hard evidence of benefits absent
Ignore advice from IT
Going outside for design/development
Users building networks for own needs
not looking at corporate needs
No efforts for technology transfer or
learning from experience
Duplication of technical staff if decentr
Redundancy in systems
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There should be a balance between innovation and stability
There should be a balance between user control and IT control
If rapid innovation is needed then rigid policies should not interfere
If trying to bring new major systems then IT control may be better cuz it will
ensure standardization.
– once this is in place then user control development can take place or IT
can be decentralized to some extent
– Decentralized IT can respond much faster to business (divisional) needs
• When user group drives innovation it can cut short the time (can be
faster) but integration with other systems later can be problem
• Decentralized user driven innovation (can be spreadsheet based
systems) can lead to fragmented systems
– Supporting these fragmented systems later can be problem
– But user driven innovation is easier to gain acceptance..its your baby
Why do users take control?
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Pent up user demand
Helps users understand the potential of IT, can assign
their own priorities
3. Might find a quick solution to their needs
• Long term implications of these solutions may not
enter their mind
• Vendors downplay standardization, upgrade,
maintenance problems
• Vendors emphasize functional features
4. Users desire to control their own destiny
5. Local concerns diverge from corporate IT initiatives
• Leads to decentralized development, deployment,
and mgmt
• Easier to divest a unit if IT activities not integrated
Why do companies try to centralize IT?
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Staff professionalism
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can provide better career paths
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Easier to keep centralized staff up to date
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Easier to maintain certain areas of expertise
Standard setting and ensuring system maintainability
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Easier to set and follow standards in infrastructure & mgmt
• Stds reduce complexity and cost
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Central staff likely to do a better job of data mgmt, security issues,
costing practices, documentation.
Easier to do technical feasibility studies
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Decentralized IT is very user driven and users don’t have the foresight
to see what else might be needed in the future, they are driven by
immediate need fulfillment
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How well the new technology will fulfill future needs
• Is the new technology scalable
Easier to set and follow data standards
Can do a better job of cost estimation and analysis cuz of experience
Coordination and location of IT policy
Clear policies can help reduce tension between IT staff and business users
Senior management should ensure these policies are developed and
modified with time
Both groups (IT and users) should understand implications of their role
IT’s minimal responsibilities for managing long term needs of orgn
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Develop and manage long term architectural plans and ensure new
projects fit within the plan.
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These plans can be modified over time
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Develop a process to establish, maintain, and evolve co stds in:
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Telecommunication protocols and platforms
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Client devices and software
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Server devices, middleware, DBMS
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Programming languages
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Documentation procedures and formats
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Data definitions
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Redundant storage, backups, and disaster recovery procedures
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Establish procedures to look into outsourcing for new projects
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Ensure that outsourced projects should follow corporate stds
Do asset management
Plan career paths for IT staff. When IT decentralized then career
pathing often lost
Educate business users about challenges in IT support, all the costs
of maintaining systems, pros and cons of using new technologies,
compatibility issues, scalability issues
Try to have preferred suppliers
Have periodic reviews of legacy systems to see if they should be
replaced
Management of IT budgets
• Many organizations allocate a certain portion of IT budget to users and
some to IT
– Expenditure on highly technical and infrastructure to be decided by IT
– Expenditure affecting business procedures to be decided by user groups