Challenges Faced by Alcan Organization - Essay Example

? Alcan Part Five Introduction The world over is yeaning for technological advancement and of present life, scientific innovations are inseparable from the normal daily living. The field of Information Technology has been one key area that has impressed technology to the latter. Because of this, there has been increasing need to have organizations that are IT supportive. One such organization is the Alcan organization. Alcan is an IT Organization based in Canada with its head office at Montreal along the Sherbrook and Stanly streets. The enterprise has operating facilities across 61 countries with a work force of about 68,000 employees (Dube, Bernier, & Roy, 2009). The organization takes the leading position in production of raw materials, fabricated products and primary metals. The enterprise is involved in creating and selling of a variety of products, which include bauxite, automobile iron, sheet ingot, aluminum recycling services, forging stock (INDUSTRY CANADA, 2005). This paper explores a report of Alcan based on the case studies. The report discusses the application of Information Technology within the Alcan organization and it is a summary of issues addressed in part 1 to part four all of which focused on the Alcan. It addresses a range of issues that concerns Alcan Organization. The issues of concern include the General Systems, Theory and Social-Technical Theory, Organizational Success, Failures and Consequences, Communication Policies, STS Practices, and application of theories within the Organization, the Alcan’s organization and operating technology, technological contributions to the organization, dominant Information Technology strategies and practices, technological barriers or success, the Alcan’s business continuity plan, the company’s organization and operating technology, technological contributions to the organization, dominant Information Technology strategies and practices, technological barriers disaster recovery plan, and business continuity plan. Organization Environment. Alcan Organization has operating facilities across 61 countries with a work force of about 68,000 employees. It has four principal business groups which are: Bauxite and Alumina, Primary Metal, packaging and the engineered products. The four business groups are the main revenue contributors for the organization (Dube, Bernier, & Roy, 2009). The company sells a variety of products, which include bauxite, automobile iron, sheet ingot, aluminium recycling services, forging stock. It is extremely vertically integrated having eight mines and deposits, a transport network with ports and facilities, seven alumina plants, 26 aluminium smelters, 17 laminated products plants, 12 electric power plants, seven alumina refineries, 180 packaging materials plants and 49 engineered products plants (Dube, Bernier, & Roy, 2009). Organizational Structure. The senior management in Alcan Company consists of a CIO and four associates (Dube, Bernier, & Roy, 2009). These associates include: Strategic IT-Program director, Chief information-security- officer director, performance-management director, and the Enterprise Architectural director. Next to these are two services that are shared. One service is for the application, and the next is for infrastructure. In the centre of the ladder, there are different business groups of Information Technology directors. Each business group is headed by an IT director referred to as VP (Dube, Bernier, & Roy, 2009). Challenges Faced by Alcan Organization. Alcan organization is faced with various environmental, economical, social as well as technological challenges. The environmental challenges facing Alcan include sustainable raw material development, industrial waste, air emissions, and water. The company overcomes this challenge by developing a clean manufacturing process and designing a method of recycling the waste products (Foster, 2005). Economic Challenges in Alcan include high costs due to funds misappropriation in the company, ineffective and inefficiency business process that made use of Information Technology complex, and lack of group coordination. This has been curbed by a clear auditing and analysis of the Information Technology costs. Social Challenges in Alcan include inadequacy of skills and knowledge, frustrations for the Information Technology management, and lack of co-operation and coordination among the business groups (Dube, Bernier, & Roy, 2009). These challenges have been solved by the VP through organizing the Information Technology management at all levels in the entire organization. The technical challenges in Alcan included challenges in the internal available skills, inadequate coordination of the Information Technology projects and its initiatives, insufficient evaluation of projects risks, a problem in identifying, compensating and evaluating the Information Technology competences by various business groups. These challenges have been solved by outsourcing consultants and the contract workers, optimal utility of specialists and connections in all projects, and streamlining of leadership in helping promote coordination among senior management and other workers. How Alcan manage Information Technology resource allocation and prioritization of its projects. The management of the Information Technology resources and its projects was done by a central unit of organization that obtained some support from the internal mechanism billing. All Information Technology services, human resources, and financial services, the centralization of services that were shared promoted the shared competencies, standardization, consolidation, low cost, reuse, and economies of scale (Dube, Bernier, & Roy, 2009). General System Theory and Socio-Technical Theory (STS). Alcan Company consists of four groups of prime systems, which are responsible in managing the different types of units within each particular group. These systems include the Alumina and Bauxite business group, the Primary Metals group, the engineered products unit, and the packaging unit. The STS principles of Alcan include; proactive and innovative use of technology for sustaining and delivery of the value of business; basis, competencies and skills; reduction of complexity, leverage, diversity economies of scale; making information be reusable, protected, shared, and compliant; buying and integrating materials before being built; and managing infrastructure such as a utility (Dube, Bernier, & Roy, 2009). Organizational Success, Failure, and Consequences. The Alcan organization’s multiple acquisition has established a fragmented environment of Information Technology that is diversified. This environment leads to a negative effect to the efficient and effectiveness of the processes of the business. A number of technological initiatives placed in the business groups had no intergroup company coordination. The business groups were also coordinated inadequately. The internal expertise, on the other hand, was inadequate at the project’s scope (Girard, 2009). Communication Policies and STS Practices. The communication in Alcan addresses all the company’s needs through the provision of the services that are most comprehensive. This communication policy offers a full array of telecommunication service like those involving the fiber or cable for implementation of data or voice, telephone maintenance, and equipments of core networking or wireless (Girard, 2009). Examples of the communication Policies in Alcan include the structural cabling policy, the digital phone system policy, wireless communication policy, the policy of the conferencing equipments, the automated call distribution equipment, and the call accounting machine (Girard, 2009). Application of Theories within the Organization. The writer has his own personal ideas concerning how the organization might use the general systems, the Social Technical Systems (STS) knowledge, as well as application in fostering organizational improvement and positively leveraging the future of the Alcan Organization. In line with this, writer is of the idea that the Alcan Organization builds a solid, competent team that would provide the much needed support in helping bring reforms within Information Technology management systems to be sure of the better future of the Alcan Organization (Dube, Bernier, & Roy, 2009). The writer also holds the opinion that it is necessary to build cohesion, develop a common vision with the aim of finding effective ways of working together as a team. Additionally, the writer is of an idea that there is the need to have clear direction and the specific mandate that can help promote efficiency and effectiveness in the way Information Technology department executes its programs (Dube, Bernier, & Roy, 2009). Organization and Operating Technology. The operating Information Technology (IT) organization in Alcan deals with the objectives of the organization. The Corporate IT function of Alcan organization is made up of 136 total resources that are spread in more than 12 different sites. The business group has a structure that is based on five sectors of responsibility (Dube, Bernier, & Roy, 2009). These include: the corporate application group, the group for Architecture and planning, the shared Infrastructure Service group, the Information System Solution group, and the Infrastructure Planning group. This group helps in operation of the infrastructure components that include e-mail, global network and data processing (Dube, Bernier, & Roy, 2009). Technological Contributions to the Organization. The introduction of the SAP implementation and the former Pechiney project within the engineered product group is a significant technological development in the Alcan Organization (Dube, Bernier, & Roy, 2009). This is so because it leads to the centralization of the IT shared services, which promoted the economies of scale, standardization, shared competences, low-cost experts, reuse and consolation. Dominant IT Strategies and Practices. The dominant Information Technology strategy in Alcan Company was the establishment of a blueprint for new orientations in the management of IT. This strategy made the company’s desire of repatriating management of services of IT so as to get the tools that are indispensable for its management globally (Dube, Bernier, & Roy, 2009). The implementation of the SAP integrated package in each business group was also a significant strategy that made an enormous progress in the consolidation and standardization of the IT infrastructure within the organization. Other practices include the creation of IT enterprise architecture, management of applications, managing the technological infrastructure and management of the IT investments (Dube, Bernier, & Roy, 2009). Technological Barriers or Success. The first technological barrier is the IT model of governance which is not revised regularly making it to be obsolete hence no reflection on the true ever changing business world. Secondly, Alcan organization relied on outsourcing of experts due to the poor and insufficient available skills. Thirdly, the lack of rigor by the management of IT has made the technological projects be delivered either over budget or late (Dube, Bernier, & Roy, 2009). Alcan Business Continuity Plan. In Alcan, the IT management governance model and implementation is one system that is in demand of business continuity. This is so in order to ensure that all the global objectives of Alcan are met. Next, the IT Committee of leadership in Alcan calls for business continuity. This strategy is the basis for unity between the IT Directors and shared services of Alcan’s business groups, thus the demand for continuity (Belmer, 2006). The key considerations for implementing business continuity plan at Alcan included the establishment of the internal functioning of the company, ensuring that the authority structure which connects the business groups in and out of the company are redefined and work well. Alcan Disaster Recovery Plan. Development of the disaster recovery plan is done to minimize the risks of disasters and helps in handling them whenever they occur (Girard, 2009). Techniques for disaster management in a company include contingency management, risk management and crisis management (Girard, 2009). In Alcan Company, the tiers, which include crisis, management team, crisis action team and crisis communication team, are established. These teams are used in handling different facets of the crisis with schedules being used for efforts coordination. Simple teamwork helps Alcan Company to minimize results during a crisis (Girard, 2009). Political Forces Influencing IT Improvements in the Alcan organization. The Alcan organization being one of the manufacturing companies, therefore, attributes its successes, as well as its failures to political influence (Girard, 2005). The company has failed to realize its full potential following a number of political centered challenges. One of such challenges involves the management’s inability to set up aluminum refinery bases in some countries due to uncertainties of political turmoil. In many countries, generation of electricity is solely a responsibility of the government. Since the Alcan organization is a heavy consumer of electricity, its reliance of the electricity supplied by the government becomes uneconomical. Smelting of aluminum requires large amounts of electricity. Research shows that the costs of smelting aluminum represent 35-40% of the total production cost (Belmer, 2006). This means that the competitive standing in the production of aluminum is because of its ability to generate and supply its own energy to its many smelters at relatively lower costs. This implies that refusal by some governments to allow them generate its own power limits it from exploring all the opportunities in the market (Girard, 2005). The Alcan organization has been criticized for a variety of lawsuits (Girard, 2005). For instance in 2004, the Alcan organization was made to pay $a3.6millions to the US Environmental protection Agency in an attempt to cover the environmental cleanup costs in Northern New York states. In yet another similar instance, the Alcan United Stated subsidiary department was charged by the US justice department. These lawsuits have been outstanding blows to the achievements of the Organization in many countries of the world. Change In The Management Plan. This Plan focuses on reducing impacts of the business destruction by incidence Reduction and effective response delivery (Girard, 2009). For the achievement, of the maximum impact reduction, a planning that is comprehensive needs to be put in place. This Plan considers the appropriate audience. This includes the external agencies and the internal management, Board and Staff (Girard, 2009). All the business groups of Alcan Company need to acquire a health and safety occupational series of assessment (OHSAS certified). Each business group should have a regular toolbox meeting in order to facilitate safe practices. A safety committee of executive raises the safety awareness within each business group. This committee will also enhance safety skills by training all individuals at Alcan. This committee would also implement systems of assessing the operational hazards in the business (Girard, 2009). The interface Man-made machine program needs to be reviewed for safety performance within the business to help in continuous supply of services and materials (Dube, Bernier, & Roy, 2009). The leadership safety program needs to be reviewed in order to enhance the existing business continuity plans. Apart from this, the management of the company needs to identify services that are essential, plants, and other inputs of production. The company shall Plan for up to fifty percent absence of staff for the duration of 3 weeks at the height of any business disturbance. The company will assess the need of skills and core staff to make sure that essential positions in the company are supported by an alternative member of staff. Conclusion. From the discussion, it is evident that the Alcan organization has witnessed a number of transformations. It is rated the world best organization as far as IT management is concerned. Among the areas that were most significantly transformed includes the General System Theory and Socio-Technical Theory, the communication Policies and STS Practices, and the Application of Theories within the Organization. Other areas include organization environment, organization and operating Technology, and the organizational structure. These transformations were implemented in making sure the organization meets the demands of the market. With all this in place, the Alcan Organization has remained on course for many years. It is currently the leading Aluminum producing company in the world basing on its streamlined IT system management. Annotated Bibliography Belmer, B. (2006). Alcan AS an IT Organization. Retrieve on 5th June 2012 http//www.iwaysoftware.de/applications/alcan. The author presents the Alcan Organization as an IT Organization. The author focuses on the Alcan organization giving much description about its locality, as well as its management. The article covers a range of IT business units cutting across the challenges the organization experiences while implementing key changes within it. In essence, this source is helpful in getting an overview of the disaster management plan, the structure and organization the Alcan organization as far as IT department is concerned. Dube, L, Bernier, C, & Roy, V. (2009). Taking on the challenge of IT management in a global business context: The Alcan case – Part B. International Journal of Case Studies in Management. 7(2), 1-12. The authors discuss the challenges of managing IT management in a business. They summarize the challenges of implementing changes in Information Technology department of the Alcan organization, as well as the change in management style owing to the coming of the new chief officer in charge of IT. The authors indicate that poor management leads to reduced effectiveness and hence low production. This source is particularly vital because it provide an overview of how change in management style can be healthy for a growing organization. Dube, L, Bernier, C, & Roy, V. (2009). Taking on the challenge of IT management in a global business context: The Alcan case – Part A. International Journal of Case Studies in Management. 7(2), 1-10. The authors discuss the challenge of implementing and managing IT in the Alcan Organization. They discuss the transformation that Alcan organization undergoes with respect to Information Technology. The article summarizes the historical background of the Alcan organization with a view to indicate the challenges the organization has had to experience as a business entity that is trying to impress IT. The source is particularly vital in the light of research presented because it provides an overview of the structure of the Alcan organization, its historical background, as well as the transformational challenges especially when implemented Information technology. Foster, B. (2005). Alcan IT Organization. Retrieve on 5th June 2012 http//www.iwaysoftware.de/applications/alcan. The author presents the Alcan Organization as an IT Organization. The author focuses on the Alcan organization giving much description about its locality, as well as its management. The article covers a range of IT business units cutting across the challenges the organization experiences while implementing key changes within it. In essence, this source is helpful in getting an overview of the disaster management plan, the structure and organization the Alcan organization as far as IT department is concerned. Girard, R. (2005) Can Alcan claim to be the best: It’s Corporate and social responsibility in question. International journal Canadian Aluminum Giant’s Profile. 7(2), 1- 50. The author presents the Alcan organization as being the best IT organization in the world. The organization holds both social and corporate responsibilities. The author of this journal focuses on general system Theory and Socio-Technical Theory as applicable within the Alcan Organization in making sure it is a world leading IT company. Additionally, the author of this article discuses the economic, political successes, failures, and consequences of the Alcan Organization. This source is helpful in getting an overview of the political challenges, organization plan, successes, and failures, and of the Alcan as an IT Organization. Girard, J. (2009). Alcan Inc. The Simon Fraser University journal 7(3), 1-3. The author discuss the Alcan Organization describing it an organization that empress IT. The article touches on many issues that affect the Alcan as an IT organization cutting across its successes, failures, and consequences. This article serves as a helpful source in getting an overview about the organization change in management plan, successes and consequences of the Alcan Organization. INDUSTRY CANADA (2005). Canadian aluminum industry technology: The Canadian aluminum industry. Retrieved on 20th May 2012 from http://www.ic.gc.ca The article discusses the Aluminum industry as an organization that impresses Information Technology. It summarizes challenges: environmental, social and economic challenges that any manufacturing industry such as the Aluminum producing industries experiences. Through such highlighted challenges, one can get an overview of the challenges the Alcan organization as one of the main aluminum producing company is made to go through in the wake of the ever changing business environment. References. Belmer, B. (2006). Alcan IT Organization. Retrieve on 5th June 2012 http//www.iwaysoftware.de/applications/alcan. (Article with one author/Article without DOI-URL as home page used) Dube, L, Bernier, C, & Roy, V. (2009). Taking on the challenge of IT management in a global business context: The Alcan case – Part A. International Journal of Case Studies in Management. 7(2), 1-10. (Article with three authors/Article in a journal with continuous paging/ Article with no DOI)   Dube, L, Bernier, C, & Roy, V. (2009). Taking on the challenge of IT management in a global business context: The Alcan case – Part B. International Journal of Case Studies in Management. 7(2), 1-12. (Article with three authors/Article in a journal with continuous paging/ Article with no DOI)   Foster, B. (2005). Alcan IT Organization. Retrieve on 5th June 2012 http//www.iwaysoftware.de/applications/alcan. (Article with one author/Article without DOI-URL as home page used) Girard, J. (2009). Alcan Inc. The Simon Fraser University journal 7(3), 1-3. (Article with author author/Article in a journal with continuous paging/Article with no DOI)   Girard, R. (2005) Can Alcan claim to be the best: It’s Corporate and social responsibility in question. International journal Canadian Aluminum Giant’s Profile. 7(2), 1- 50. (Article with one author/Article in a journal with continuous paging/Article with no DOI)   INDUSTRY CANADA (2005). Canadian aluminum industry technology: The Canadian aluminum industry. Retrieved on 20th May 2012 from http://www.ic.gc.ca (Article with an organization as author/Article located online) Read More