MDCM - Maintenance of Disparate IT Systems - Case Study Example

MDCM - Maintenance of Disparate IT Systems From MDCM (A) it was noted that MDCM is an Efficient, Predictable Operator. This means that the organization operates in an industry that is characterized by low rates of change and the company itself is focused on meeting business needs while tightly controlling costs. The strategies that MCDM needed to adopt were those that emphasized cost reduction and operational efficiency. This means that from the portfolio of IT projects outlined, the company would need to prioritize those that would enable it to reduce costs, accelerate productivity and enhance organizational excellence. Next we shall look at the 12 IT projects proposed by MDCM’s IT Portfolio Management team and categorize them within these three strategies that the company seeks to be implemented. Cost reduction is the first priority for both MDCM, Inc. CEO Max McMullen and CIO Shawn Atkins because they needed to turn the tide on MDCM’s losses during the last five consecutive quarters (Jeffery and Norton, “MDCM, Inc. (B): Strategic IT Portfolio Management” 1). From the first case we learnt that an alarming MDCM 80 percent of the IT budget went to maintenance because of the problems associated with integrating the numerous disparate systems. (Jeffery and Norton, “MDCM, Inc. (A): IT Strategy Synchronization” 5). Therefore IT projects that would eliminate these huge maintenance costs should be a priority. We identify the following initiatives as having the potential to address the IT systems disparity issue: (1) unifying methodology and technical standards; (2) consolidating data centers and networks; (3) standardizing server hardware and platforms; and (4) streamlining design systems. The second strategy that MDCM needs to focus on is geared towards enhancing operational efficiency and is what we separate into two business strategies: accelerating productivity and enhancing organizational excellence. From the 12 IT projects proposed by MDCM ITPM team we identify the following as the suitable for accelerating productivity: (1) implementing Enterprise Resource Planning; (2) managing the supply chain; (3) improving collaboration systems; (4) beginning CRM; and (5) implementing e-procurement system. The remaining IT projects enhance organizational excellence. After the above categorization the next challenge is in prioritizing which IT projects to implement considering that resources are scarce and time within which tangible results need to be realized is limited. We adopted Kraft Foods criteria for evaluating projects using likelihood for success and business value as the two key determinants. The results obtained are shown in the table below: Table 1: Results of MDCM IT Project evaluation scores IT Project Likelihood of Success Value to the business Unify Methodology and Technical Standards 0.73 0.51 Consolidate Data Centers and Networks 0.61 0.68 Outsource Nonstrategic IT Services 0.70 0.46 Standardize Server Hardware and Platforms 0.60 0.46 Implement Enterprise Resource Planning 0.39 0.74 Create Employee Intranet Portal 0.84 0.44 Manage the Supply Chain 0.40 0.69 Streamline Design Systems 0.69 0.57 Improve Collaboration Systems 0.77 0.61 Begin CRM/Create Data Warehouse 0.43 0.57 Implement E­-Procurement System 0.70 0.74 Customer Self-Service Portal 0.52 0.69 These results are then represented in the Portfolio Application Model Matrix in Appendix 1. From the matrix, three projects – implementing ERP, managing the supply chain and beginning CRM – have high value to the company but are difficult to execute. On the other hand, three projects – standardizing server hardware and platforms, outsourcing nonstrategic IT services and creating employee intranet portal – have low perceived value but a high ability to succeed. The rest have high perceived value and high ability to succeed. However to decide which projects to implement, the CIO Shawn Atkins and his team will have to consider both the matrix and the strategic goals we outlined earlier, namely: reducing costs, accelerating productivity and enhancing organizational excellence in that order. We recall that the greatest cost for the huge IT budget at MDCM was maintenance of disparate IT systems. It would be imprudent to implement any changes to the companies IT infrastructure without first addressing this issue of dissimilar systems. Therefore, the first IT project that we would advise MDCM to implement is to unify methodology and technical standards. This is critical because all the other systems development initiatives need to be standardized to reduce vendor management and other costs. Following this would be to consolidate data centers and networks. Other than the immediate cost savings that comes from consolidation, this will provide MDCM CIO with infrastructure that shall give him global view and control of the organizations IT, something he currently does not have. Furthermore we see that databases and networks are at the foundation of MDCM Target Technology Blueprint (Jeffery and Norton, “MDCM, Inc. (B): Strategic IT Portfolio Management” 7). Standardizing server hardware and platforms would not be a priority considering that most of these platforms are capable of running multiple systems. The thinking here is that once methodology, technology standards, databases and networks have been aligned / synchronized they could still run on multi-platforms so long as these platforms are robust – something that they tend to be. The third project that we would propose MDCM to embark on is to implement ERP because its value to the organization especially with regards to accelerating productivity cannot be gainsaid. Moreover, other major IT projects such as implementing supply chain management system and CRM are largely dependent on the presence of a robust ERP. However, the high cost and long duration needed to implement ERP may be tedious for management and IT staff therefore it would be prudent to conduct a project that has a high likelihood for success and has high business value. For this reason we would advocate for implementation of the e-procurement system. This should yield high visibility to the IT team with little effort. It will also give them motivation to persist with the implementation of the more difficult ERP system. Design systems are at the core of the MDCM core business but are much harder than e-procurement to implement thus it is should be done after the easy win in implementing e-procurement. Customer self-service portal should be done after creating the data warehouse so as to permit MDCM conduct consumer analytics. And considering that the CRM will be done after ERP, this project may be among the last to be implemented. Successful implementation of E-procurement and ERP may make Supply Chain Management system (SCM) less urgent. This means that standardizing server hardware and platforms, improving collaboration systems and creating employee intranet portal may in fact be conducted before the SCM. In our view, outsourcing should be conducted last so that by that time, the CIO Shawn Atkins and his team will be fully aware of what is core to the organization and what is not. Also, they will be aware of what their new IT systems can accomplish effectively in-house and what they cannot. Works Cited Jeffery, Mark, and Joseph F. Norton. “MDCM, Inc. (A): IT Strategy Synchronization.” 2006 : n. pag. Print. ---. “MDCM, Inc. (B): Strategic IT Portfolio Management.” 2006 : n. pag. Print.  Appendix 1: MDCM Portfolio Application Model Matrix KEY: 1. Methodology – Unify Methodology and Technical Standards 2. Consolidate data – Consolidate Data Centers and Networks 3. Outsource – Outsource Nonstrategic IT Services 4. Standardize server – Standardize Server Hardware and Platforms 5. ERP – Implement Enterprise Resource Planning 6. Intranet – Create Employee Intranet Portal 7. SCM – Manage the Supply Chain 8. Streamline CAD – Streamline Design Systems 9. Collaboration – Improve Collaboration Systems 10. CRM – Begin CRM/Create Data Warehouse 11. E-procurement – Implement E­Procurement System 12. Self-service – Customer Self-Service Portal Read More