Alcan write up Case Study Example | Topics and Well Written Essays - 1500 words - 1

Alcan write up - Case Study Example Some of the trends in its mergers and acquisitions are indications of this. However, the company has not sought to benefit from operational synergies that are available to it. Organizing Model – In this model several business unit or process leaders in the company make there own decisions. This is akin to a feudal system. This indicates that a decentralized approach is taken towards the organization and management of resources. Architecture – The IT governance style appears to be that of anarchy as each user group pursues its own IT agenda. This has resulted in over 1000 applications. Of this over 400 relates to finance. This has been that way even as the CFO as head of Corporate IT. Standards – The governance style of anarchy prevails as there are really no set standards to follow. The various user groups in each business unit appear to do as they please without any regard for what is happening in similar areas in the organization. Resources – Each business unit decides on the resources that it needs. No attempt is made to determine if the competencies exist in the organization. As a result 80% of IT budget is spent on outsourcing, equipment and software. This would seem to imply that with all the mergers and acquisitions the competencies in IT has not improved but has only gotten worst. Governance is structured in this way at Alcan because after mergers and acquisitions take place the companies basically retain their identity as separate business units. There is no attempt to benefit from economies of scale in terms of merging similar IT projects. Thus on Ouelette’s arrival three separate SAP implementation were taking place at the same time. The advantages of this type of decentralized structure are that: it allows the CIO to concentrate on key IT decisions; and the business unit executives are free to carry out their management function as they were used to before the merger. They operate as before the merger and