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Managerial Applications of Technology - Final - Case Study Example

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Organizational Transformation and IT Applications 1 Question 1: You are an internal consultant assigned to support the IT department within a large fortune 500 company. The company has been struggling over the past several years and has recently embarked on a massive restructuring of the organization and the supporting technologies…
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Download file to see previous pages The very first thing to do is to set up a framework for IT acquisition (p. 592). This entails identifying the appropriate IT applications that would be used in the organizational restructure, justifying that the new set of IT applications to be acquired is worthwhile in terms of costs and benefits, and planning the processes of acquisition and implementation of the newly acquired IT applications (pp 592-594). Some of the options available for IT acquisition are through lease of the required IT applications, outright buying or purchase of the application, developing the applications in-house or subcontracting the whole IT process to external managers/consultants. Whichever option chosen must be cost-effective; it must also help in initiating business process redesigning within the organization (pp. 600-606). If properly handled, this organizational transformation would also be instrumental in connecting the organization’s databases and 2 enterprise systems, and providing a smooth link or integration to the organization’s business partners (p. 606). All the processes highlighted above could only successful happen if there is effective managerial or leadership establishment. This signifies that all the organization’s employees must support and work hard towards the change. 3 Outsourcing/Off-Shoring: Pros and Cons Question 2: You’ve been asked to work with HR to evaluate the potential for outsourcing some IT functions including the potential use of off-shore resources. What are the advantages and disadvantages associated with outsourcing? What can you share with your HR partner regarding the reasons to outsource, factors to be considered, and potential risks? Based on your knowledge of outsourcing/off-shoring what are your thoughts regarding work that would not be good a candidate for outsourcing/off-shoring? What methods will you suggest to measure the value of an outsourcing/off-shoring relationship? Answer 2: Some organizations perceive IT outsourcing as a way of subsidizing their capital expenses and working towards cost-effectiveness to maximize profits (p. 506). However, there are some important factors that should be strictly considered before outsourcing/off-shoring some functions of any organization’s IT Department. Some commonly touted advantages of outsourcing/off-shoring include that it is cost-saving; it allows business expansion; it creates exposure to better technical expertise; it is flexible and encourage better quality and improvement; and it supports major organizational transformation (pp.506-510). But some of the disadvantages of outsourcing include de-motivation in in-house IT professionals; having negative effect on business strategy; the problem of confidentiality risks; and the fear of sudden collapse of IT provider. The main reason why an organization may seriously consider outsourcing its IT functions is to reduce the overhead capital 4 expenses on its IT requirements. However, it is helpful to consider some factors before going into outsourcing: these include choosing the right external IT Service Provider; estimating the cost of off-shoring; and identifying which applications should not be outsourced based on the importance of their confidentiality to the organization’s future. Even though all the factors outlined in the ...Download file to see next pagesRead More
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