Creating a Process-Driven Organization at AgCredit
1. Propose an organizational structure for the IT department that you feel would support the transformation of AgCredit into a process-centric organization.
AgCredit should appoint a CEO who is responsible for carrying out the strategic plan and will ultimately responsible for managing company operations coupled with a Vice President would oversee operations, carry out the strategic plan set forth by the CEO, and manage the four separate divisions. The CIO would direct the IT department, which would include several IT senior leaders, as well as guide the company’s technological direction. The CFO would be largely involved with both the business and IT departments, helping to give a deeper understanding of cost components and act as an advisor to both IT and business regarding legacy software and future projects. A business analyst would be the link between the IT and business departments, matching technology to business needs, and predicting future business directions. The IT relationship manager would be the connection between the business and IT departments and would ensure the IT governance is translated into business terms.
Other staff could include an applications architect who would design applications, implement middleware and infrastructure; and a Network manager who would direct daily IT operations, test, deploy, and integrate network systems.
A steering committee will be needed to be implemented as part of the approval process of all projects.
2. Outline a project selection process for AgCredit to ensure alignment with the enterprise business vision.
First of all, a thorough inventory of what software, practices, process standards, and groups already exist before implementing new technology. Next create a technology roadmap to show the opportunities for technology to serve the business for more effectiveness and efficiency. complete a Gap analysis to assess the current state of technology which will support the current and forecasted needs of the business, and work with enterprise architects and technical experts to understand the future business ventures. This will allow staff to see the technology required to support the business’s vision and strategy. In addition, perform a business analysis between IT and the business to align IT planning, match technology to business needs, and forecast future business directions. Additionally, create an application portfolio which will help them categorize, assess, and rationalize to identify which applications to maintain, invest in, replace, or retire, and which new business applications would bring the most value to the business. It will include an analysis of operating and capital expenses by application, demand analysis and an application portfolio analysis which will assess the current versus the desired state of both the technology and business value. It is important to also create a project portfolio which focuses on future spending, which will attempt to balance IT cost reduction efforts and investments to develop new capabilities with technology and application upgrades. Additionally, goals, deliverables, and a set of governance procedures should be created to guide the management in creating the application portfolio. For ongoing rationalization of the applications portfolio, an analysis and reporting capability should be created such as a business case which will include metrics and a quarterly reporting structure to ensure that savings targets are obtained. Before implementing new applications, they need to be clearly identified and a basic understanding provided of its functionality. In addition, applications will need to be categorized for comparison and portfolio management purposes, as well as rate the technical quality of the application which should include various elements of risk, rate each application as to the value of the application to the business,...
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