Proper Information technology services is part of stringent objectivity inline with the cooperate strategy designed by information management experts. This is vital in sustainable and efficient, but rapid quadrant growth as a stable conglomerate functioning in a competitive business environment. In line with the above, this analytical treatise attempts to applaud on the issues surrounding the newly launched Horizon 2000 transformation strategy by MDCM firm.
Thus, the concept of this analytical essay is to create, align, and articulate the above IT strategy as part of the existing Horizon 2000 model. Besides, the quadrant in which MDCM falls is explained alongside overall goals of operation in competitive market. In addition, the treatise reviews the critical IT objectives for MDCM.
In the context of unique environment for business, IT governance is an essential component of oversight and functionality success especially when the functional priorities are well defined. Reflectively, creating a procedural and reliable oversight fork defining metrics of meaningful performance has always been a challenge to the IT Management team in organizations a cross the globe.
Unfortunately, the focus is often directed towards curtailing projects rather than establishing competitive advantage. Besides, others follow blindly the models used by opponents or other competitors without proper knowledge on how such systems operate. Is there a solution?
MDCM firm is involved in the business of manufacturing medical devices and is one of the largest in the world. With these services in their production line, the company falls in the first quadrant of the Accenture model which is a responsive solution provider. This can be attributed to the fact that it is a renowned company and therefore, capable of changing fast in response to the dynamics of business environment.
In addition, the company would need to be efficient in its operations in order to maintain competitive advantage in the product and service market. MDCM firm has adopted the hybrid organizational model comprising of an outsourced IT management expert working together with a team of twenty three employees of this firm in the IT Management overhaul for the ambitious Horizon 2000 strategy.
Following the promotion of McMullen as the new CEO, he embarked on assembling a transformational team including an outsourced expert who coordinates this team. This strategy synchronization is inclusive of budgeting allocation not overlap 10% of the company revenue if the strategy is to enhance competitive capabilities.
In this scenario, decisions on IT systems strategy entails separation of IT challenges with the production line. At MDCM, the sole decision maker for this arrangement was the new CEO who outsourced an expert to work along with the company team. The standardization and integration model was created by the outsourced expert in consultation with the implementation team.
In consultation with the top manager, the outsourced expert has the sole responsibility of overseeing the transformation initiative. However, decision on the expenditure on this strategy lies with the top management who have already predicted a budget of less than ten percent of the company’s total revenue.
Alongside the management team, the outsourced party consulted the top manager in this process of monarchy IT governance model. This type of governance is associated with strong, authoritarian, and visionary decisions. Notwithstanding, it is a prompt way of making decisions since the fewer the parties involved in the process, the shorter the time frame for action plan and quick response on major issues and changes. Consequently, there is low risk of dissent or conflicts between parts of the organization.
However, the decision making team consists of only a smaller section of the entire firm. Thus, the process is non-Participatory a larger percentage of the employees are not given a chance to make contributions.
The overall strategic goal for this firm is to develop as strategic IT governance system for controlling over head cost of operation, liberalizing production, and improving efficiency. Despite a forty percent market control, the firm’s profitability is on the down ward trend. Besides, there is no proper tool for monitoring production, controlling expenditure, and analyzing efficiency.
As a matter of fact, the outsourced expert is disturbed by the discoveries on inefficiency, inconsistencies in the supply chain system and channel. As COO Michael assert, there is neither a proper forecasting technology nor a self-service IT solution. Despite the piloted customer relationship management system, the accounts and online ordering systems are inconsistent and very unreliable. Generally, the firm’s IT management system is in a mess.
Also, there are no proper communication channels between different departmental sections, management, and employees. Thus, the overall strategy is to adjust these short comings in a functional, cost effective, and reliable IT objectives which are friendly to the systems available. The strategic goals to achieve include cost cutting, reducing the number of suppliers, and outsourcing inbound and outbound MDCM’s logistics.
In order to achieve this, there is an immediate need for reorganization of the productivity line. Also, the company’s organizational structure has to be aligned towards end-to-end quality product delivery response in a global scale. As a motivational strategy, the firm has to balance performance bonus with the increased responsibility as the number of employees decrease. In addition, the firm must devise a budgeting, forecasting, and production scheduling IT objectives.
The firm’s position in the competitive market remains strong due to partnership arrangements pioneered among the customers who embraced the reward and risk sharing proposal in what is commonly referred to as efficient predictable operator model. However, MDCM’s competitors have embraced this into their systems.
Deliberately, to develop a competitive advantage, the firm worked closely with its customers to reap the benefits of design manufacturability at a reduced manufacturing cost. The firm’s motto, alongside a substantial list of satisfied customers, spurred growth and survival. Despite competition, satisfied customers will always maintain the service provider.
Also, in 1987, the firm adopted expansion strategy by acquiring major branches a cross the market segment which allowed the company to disperse operational excellence and keep foreign branches autonomous enough to serve their client without interference from the head office.
As a competitive strategy, this move paid of in furthering cordial relationship with the customers in different regions and countries in what is referred to as new capability enablers approach. However, these gains were only short term due to an improper monitoring system of information technology.
In addition, the company has designed a system of determining the consistency of production and distribution of business values of measurable content in a bid to remain as the responsive solution provider. Also, the design and appraisal of decision making guide is vital in responsibility and accountability allocation in an effort to ensure that relevant Information management logistics are within the expectations.
The present business environment s characterized by the need to belong, control, formulate, and predict the steps competitors might take. Thus, the Isolated IT unit adoption is forecasted to prioritize future investment planning, marketing, and demarcating of new territories on the window of opportunities and operations in line with the competitive information integration approach.
As a result, the proactive model of management is inclusive of information lifecycle capabilities. However, since MDCM’s pointer is on profitability and survival, the expected outcomes might consist of numerous uncertainties. Thus, it is not an easy task to measure the exact outcome as the cyclones and market tides submerges.
The critical IT objectives of MDCM are value addition, standardization, and accountability. These objective works simultaneously in an arrangement aimed at capturing opportunities emerging. After determining unique IT expectations, IT governance decisions should be aligned towards the above objectives. In order to achieve these, it is important to determine the best organizational model.
MDCM has adopted a hybrid model objective which aims at fusing both centralized and decentralized approach in IT management. Besides, the investment criterion is an objective issue in Information system management. This component determines how much in terms of monetary allocation the company should set side for their administrative system. For MDCM, the value has been decided to be at 10% of the company’s total revenues or below.
This objective is important in monitoring the cost logistics when implementing an IT management solution. Also, the architectural objectivity function has been applied by MDCM. Here, the company’s focus is on flexibility, stability, and the level of the same depending on the immediate, mid-term, and long-term requirements. MDCM has embraced the externally purchased applications of multiple natures in line with the long term need to review system accountability.
The resources to use in developing an IT solution are also a primary objective of an objective firm. The social aspects involve deciding on the source of the resources to use and the condition for use. For MDCM, this objective has been taken care of in the budgetary allocation of 10% of total revenue. Notwithstanding, periodic training of the MDCM’s employees is key in ensuring an inclusive and acceptable result.
Since the employees are expected to function optimally within the changes, it is only fair to incorporate their suggestions and opinions in the transformational pack. This is achievable through conducting periodic, but objective seminars and question-answer secessions aimed at collecting personal and intra group views. These suggestions should then be reviewed and those above the litmus test assimilate into the transformational science.
To ascertain accuracy, timeliness, cost-effectiveness, usability, reliability, relevance, aggression level, and exhaustiveness, MDCM should embrace timeless training on the need to understand various management models. Specifically, the cost effective component is achievable via internalizing overhead costing before application.
Thus, the normative value in decision preliminary should be made flexible and value addition factored. Since information support system triggers decision making, the effects are reflected on actions geared towards performance achievement within secure intra and internet network systems. In order to achieve this objective, MDCM should appoint a ten member monitoring team comprising of an outsourced expert and other members of staff.
This team should be given the sole responsibility of monitoring and reviewing the effectiveness of the system and make recommendations. In addition, the influence of the central management on other branches should be minimized to allow autonomy and reduce bureaucracy on duty allocation and accountability.