IT managment - Case Study Example

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Alcoa falls in the category of “Efficient, Predictable operator” as per Accenture IT Governance Model, as the company has a low rate of change, which competes on the basis of operational efficiency. The consumption of aluminum was more than 44 million metric tons in 2005,…
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Download file to see previous pages Consumer goods for such markets are transportation, construction, packaging, electricity, machinery, engineering and other equipments. The company does not fall under the category of “product/ service differentiator”, “responsible solution provider” or “new capability enabler.”
At Alcan, the current organizing model is decentralized. Every business group competes independently having its own strategic IT plan, infrastructure choices, IT application and services, and each group has its own IT organization, which pursues its objectives which are based on group’s need and orientation (Hoving & van Bon, 2008). The group’s activities are diversified and over the years, the culture of autonomy has been reinforced by mergers and acquisitions.
The expense on IT is between $275 to $300 million (Dube, Bernier and Roy, 2009), which includes the cost of consulting, the cost of fragmented systems, infrastructure and resources. The IT costs are documented at several levels- at the local level and within the same business group. As the IT human resource does not report to the same IT unit, the results come in a wide range of methods, and certain operating expenses are not recorded as IT expenses.
No overall architecture existed in the company for IT applications. The supply strategies were used for project delivery, application management and there was no consolidated overview for the needs and requests as the competencies of groups were not aligned with the current projects. Moreover, there was no option but to opt for outside expertise. The IT management architecture was highly complex, diversified and fragmented. There were over 1000 information systems and more than 400 handled financial data. The information system was made up of 60 resources distributed in 5 different cities. The first was SAP oriented, which focused on the needs of former Pechiney, and there were ...Download file to see next pagesRead More
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