1. Organizing and leading the IT function Two set of tensions guide policies for developing, deploying and managing IT systems. 1.Innovation and control a.How aggressive innovation should be depends on Strategic impact of IT Management’s willingness to take risks (some mgrs are risk averse) 2.Short term vs long-term focus a.User tend to focus on short-term need fulfillment At the expense of long-term architectural concerns Maintenance needs Orderly deployment b.IT department tends to be preoccupied with Standardization of solutions Mastery of technology Maintenance difficulties Orderly but often slow deployment There should be proper balance between innovation and stability and degree of control by user group and IT group

2. What happens when IT group or user-group dominates over IT allocation and project priorities IT dominance too much emphasis on database and system maintenance All new systems must fit existing data structures Standardization dominates mostly IT designs/builds everything Benefits of user control discussed but never implemented Tend to avoid outsourcing IT spending 80% on maintenance and 20% on development Unhappy users IT selects project portfolios User dominance Too much emphasis on problem IT feels out of control Too many new systems & support staff Multiple vendors Lack of standards Hard evidence of benefits absent Ignore advice from IT Going outside for design/development Users building networks for own needs not looking at corporate needs No efforts for technology transfer or learning from experience Duplication of technical staff if decentr Redundancy in systems

3. There should be a balance between innovation and stability There should be a balance between user control and IT control If rapid innovation is needed then rigid policies should not interfere If trying to bring new major systems then IT control may be better cuz it will ensure standardization. –once this is in place then user control development can take place or IT can be decentralized to some extent –Decentralized IT can respond much faster to business (divisional) needs When user group drives innovation it can cut short the time (can be faster) but integration with other systems later can be problem Decentralized user driven innovation (can be spreadsheet based systems) can lead to fragmented systems –Supporting these fragmented systems later can be problem –But user driven innovation is easier to gain acceptance..its your baby

4. Why do users take control? 1.Pent up user demand 2.Helps users understand the potential of IT, can assign their own priorities 3.Might find a quick solution to their needs Long term implications of these solutions may not enter their mind Vendors downplay standardization, upgrade, maintenance problems Vendors emphasize functional features 4.Users desire to control their own destiny 5.Local concerns diverge from corporate IT initiatives Leads to decentralized development, deployment, and mgmt Easier to divest a unit if IT activities not integrated

5. Why do companies try to centralize IT? 1.Staff professionalism can provide better career paths Easier to keep centralized staff up to date Easier to maintain certain areas of expertise 2.Standard setting and ensuring system maintainability Easier to set and follow standards in infrastructure & mgmt Stds reduce complexity and cost Central staff likely to do a better job of data mgmt, security issues, costing practices, documentation. 3.Easier to do technical feasibility studies Decentralized IT is very user driven and users don’t have the foresight to see what else might be needed in the future, they are driven by immediate need fulfillment How well the new technology will fulfill future needs Is the new technology scalable 4.Easier to set and follow data standards 5.Can do a better job of cost estimation and analysis cuz of experience

6. Coordination and location of IT policy Clear policies can help reduce tension between IT staff and business users Senior management should ensure these policies are developed and modified with time Both groups (IT and users) should understand implications of their role IT’s minimal responsibilities for managing long term needs of org n 1.Develop and manage long term architectural plans and ensure new projects fit within the plan. These plans can be modified over time 2.Develop a process to establish, maintain, and evolve co stds in: Telecommunication protocols and platforms Client devices and software Server devices, middleware, DBMS Programming languages Documentation procedures and formats Data definitions Redundant storage, backups, and disaster recovery procedures

7. 3.Establish procedures to look into outsourcing for new projects –Ensure that outsourced projects should follow corporate stds 4.Do asset management 5.Plan career paths for IT staff. When IT decentralized then career pathing often lost 6.Educate business users about challenges in IT support, all the costs of maintaining systems, pros and cons of using new technologies, compatibility issues, scalability issues 7.Try to have preferred suppliers 8.Have periodic reviews of legacy systems to see if they should be replaced

8. Management of IT budgets Many organizations allocate a certain portion of IT budget to users and some to IT –Expenditure on highly technical and infrastructure to be decided by IT –Expenditure affecting business procedures to be decided by user groups