Characteristics of Alcan - Case Study Example

Type the document [Type the document sub [Pick the Examine the Accenture IT Governance Model described on pp. 2-4 in the supplementary document. Which quadrant does Alcan fall within? Why do you think so?  On examining the Accenture IT governance Model, I think that Alcan falls under New Capability Enablers. This is so because they have a faster rate of change and compete on the basis of differentiation. The faster rate of change is because at Alcan all the departments have their own IT employees who work for them. Thus each department tries to give their most and their best. The cost for IT is around $300 Million for Alcan which is a huge amount and shows its efficiency. Even though $97 million were being administered by different departments, still $200 million were spent on IT by the IT department under CEO’s approval. 2. Consider the Weill and Ross model of IT Governance we used with the Richter case. What governance styles are in use at Alcan in the 5 decision areas?  The five decision areas from the Weill and Ross Model of IT governance are given below. Furthermore, they are being discussed in the light of Alcan and how different governance styles are used in these 5 decision areas. IT principles IT principles are such a decision area where it is decided that how IT will create value for business. Business Monarchy (CEO, CIO etc) is involved in deciding how IT can be used in business. IT infra structure strategies IT infra structure strategies are a decision area where it is decided how Alcan will build shared services. Ouellette is involved and active in forming strategies. Earlier there was no proper IT infrastructure or related strategies. IT architecture IT architecture is a decision area in which it is decided what technical guidelines will be used. For IT architecture decisions, Federal style is used in Alcan. That is, one chief officer and at least one business unit leader are at work. Business Applications For the decision area called business applications, IT monarchy comes into action. Business applications are related to deciding what applications are needed by Alcan. IT investment and prioritization IT investment and prioritization is a decision area where it is decided how much and where Alcan will spend. In IT investment and prioritization, Business Monarchy style is followed. 3. Why is governance structured in this particular way at Alcan? What are the advantages and disadvantages of this structure?  Governance is structured in this at Alcan because there had been no supervisor/leader for IT for about a year at Alcan. Plus, there is decentralization to such an extent that one department does not know what the other department is doing and how. The advantages of this governance structure are that; Every department can work on its own and can show its own creativity. Even if one department lags behind and the other department is doing good then the overall impact is good on the organization. Moreover, more people can pitch in their ideas. There will be increase in competition within departments and inter-department as well. The disadvantages of this governance structure are that; High costs are incurred as we saw in Alcan’s case. Also, the IT department cannot prioritize ideas when they are handled by the departments on their own. There might be waste of resources because people in different departments might be doing the same thing. There is waste of time and energy Jealousy is created which might cause departments to hide things from one another, thus dividing Alcan into small pieces. 4. If you were the CIO, what changes, if any, would you make to governance styles in the 5 decision areas? If I were the CIO of Alcan, I would involve the other heads of different departments and would have a meeting with them all regarding every IT project so that they can tell what they think about the project. Moreover, they might be able to help improve the project because of their insight regarding customers, market and Alcan’s products. Moreover, decision-wise I would have made the following changes: IT principles I would not have changed the Business Monarchy (CEO, CIO etc) style for Alcan IT principles because all such major issues should be resolved in front of the CEO just in case. IT infra structure strategies I would have gone for IT monarchy instead of just Ouellette being the strategy maker. Much as Ouellette’s Strategies are good and worthwhile, the whole monarchy will be able to better help in formulating the strategies. IT architecture I would not have changed much in the IT architecture because the federal style works best for the IT architecture. Business Applications Here other departments’ heads and IT heads should gather in order to design business application. This is because heads of departments will be better able to tell about customers’ demands and market trends etc. Thus they will be able to give all the relevant non-technical information that will be required at Alcan for the formulation of business applications. IT investment and prioritization The style Alcan follows for IT investment and prioritization is fair enough, because after all it is the CEO who passes the budget, the CFO checks whether the budget being passed is feasible or not and CIO helps in making the budget as per the long term and short term goals. 5. What other IT projects or initiatives would you recommend to help support any changes in governance that you recommend? Answer this question in the context of related questions:  a. What are Ouellette’s plans in this regard? Do they support your recommendations with respect to governance?  Ouellette believes that hiring outside people for IT resources is not good for the organization because it makes it difficult for the employees to understand what is happening and by the time they tried to grasp what was happening, they were made to rely on the instructions given by the outsiders. b. In the Accenture document, there are suggested IT management approaches for each “type” of company in the governance model. Given your answer to question #1, and the suggestions or your company type; critique Ouellette’s plans. Are they consistent with the relevant suggestions made by Accenture’s experts? I think Ouellette’s plan is consistent with the suggestions made by Accenture’s experts because as specified by the experts, Ouellette’s plan involves the top level manager in the decisions. However, departments’ heads and departments’ IT heads should also be involved. References http://net.educause.edu/ir/library/pdf/ERB0524.pdf Read More