It Strategy - Case Study

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Mälardalen University School of Sustainable Development & Technology Masters Thesis in IT Management 2008-06-04

How does the alignment of IT to business strategy affect the organisation of the IT function?

Author ID No Opponents Tutor

Joy Agbamuche 731126 Sirintip Saitong & Shahid Mahmood Ole liljefors & Michael Le Duc

Abstract
Date Purpose 2008-06-04 The primary goal of this research is to describe the IT function and examine how its alignment to an organisations strategy affects the way it is organised. Method The chosen method was a purely theoretical examination with the use of the case study of Windham International as primary resource and secondary resources such as book and literature review used for the thesis. How does the alignment of IT to business strategy affect the organisation of the IT function? Conclusion One of the findings was that a few researchers seem to suggest that the centralized mode of organising IT was symbolic of the past, while outsourcing and decentralization are the modern approach to organising IT. Wyndham International shows the opposite, after the introduction of the CIO in 2002, centralization was the chosen mode of organisation because that was what would best fit the new strategic approach of the organisation. Insourcing rather than outsourcing proved to be a winning formula.

Research Questions

Key Words

IT Function, IT strategy, IT Centralization, IT Decentralization

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TABLE OF CONTENT

1. INTRODUCTION............................................................................................................................................. 5 1.1 PROBLEM STATEMENT .................................................................................................................................. 6 1.2 PURPOSE ....................................................................................................................................................... 6 1.3 DELIMITATION .............................................................................................................................................. 6 1.4 TARGET GROUP............................................................................................................................................. 7 1.5 DEFINITIONS ................................................................................................................................................ 7 2. METHODOLOGY............................................................................................................................................ 8 2.1 CHOOSING THE TOPIC ................................................................................................................................... 8 2.2 RESEARCH MODEL ....................................................................................................................................... 8 2.2.1 Chosen approach ................................................................................................................................. 8 2.2.1.1 Literature Review........................................................................................................................................... 9

2.3 CRITICISM OF METHOD .............................................................................................................................. 10 3. THE IT FUNCTION....................................................................................................................................... 11 3.1 THE. HISTORY OF. ORGANIZING THE. IT FUNCTIONS ................................................................................. 11 3.2 ROLE OF IT FUNCTION IN AN ORGANIZATION............................................................................................. 13 3.2.1 Size of IT function ............................................................................................................................. 14 3.2.2 IT...
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