21St Century Organization
...my opinion is the one which keeps all the organs of its system equipped with the latest technologies and advances made in the field of IT. And therefore, I consider IT function in an organization as the most prominent and difference making sector, so I would base the main focus of this paper on IT's role and its function in making a successful organization in the 21st Century.
The IT function in a Strategic Guidance style IT organization aims to ensure an acceptable minimum level of IT performance across the group's companies. The aim is to encourage propagation of good ideas where possible and to 'fix' the less competent business units on an impromptu basis--rather than necessarily to roll out a common approach to IT management across the group.
Many Strategic Guidance style companies appeared to have evolved from previously decentralized structures. The companies recognized that 'something is lost' when business units have totally autonomous and uncoordinated IT functions. Typical reasons cited were that technology and software diversity precluded systems integration, proliferation of technologies created excessive maintenance and support costs, standards of professionalism varied unacceptably across the business units, and opportunities for cost savings through coordinated procurement were lost.
In seeking to understand these strategic IT management and central IT service roles, it is useful to reflect on the reasons for the existence of an IT function in a multi-business unit company. As Porter (1988) asserts, income is earned by the business units while the corporate head office inevitably adds costs and constraints: 'Corporate strategy cannot succeed unless it truly adds value to business units by providing tangible benefits that offset the inherent costs of lost independence' (Ansoff, 1987).
In a manner similar to corporate strategic management (i.e....
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