Delivering Business Value with IT at Hefty Hardware

Topics: Management, Strategic management, Need Pages: 5 (1298 words) Published: October 2, 2014

Delivering Business Value with IT at Hefty Hardware

Delivering Business Value with IT at Hefty Hardware
The mini-case starts with “IT is a pain in the neck,” which is a wrong notion that most of the business managers have in an organization. The history of IT-business relationships in most of the organizations shows that there is a huge gap between both sides which is getting better over a period of time. Today, managers know the fact that it is the people, technology and information that realizes the value of a company and everytime IT cannot be blamed for everything. The days have gone when IT was looked at as the sole responsibility for a company’s growth or downfall. IT processes along with the ability of the organization to manage information and people’s faith and behavior decide the actual value. Shortcomings of business and IT

The partnership between business and IT at Hefty hardware is not so good and each side thinks that the other side doesn’t really understand what their actual requirements and problems are. The business thinks that they are unnecessarily pouring millions of dollars into IT and not getting a real value for it. They think that the IT is so self-absorbed with their work and problems that they really don’t get what the business is trying to do. The VP, Cheryl O’Shea and the COO Glen Vogel believe that the IT doesn’t know the basic functions of business and as part of the higher-level management, they think that it’s their responsibility to take the IT folks onto the field to really make them understand the business operations at all the Hefty stores. The IT has a total different perspective on this. The CIO, Farzad Mohammed and chief architect, Sergei Grozny refer to this whole idea of going onto the field as ‘Boondoggle’ which shows they believe that this would bring no value to the work they do and consider it as a waste of time. They think that going to the field would not help them much in understanding the business. Instead, they are only focused on planning the strategic IT architecture for the Savvy stores initiative and other high priority projects. Also, they think that they can send the IT folks onto the field once they are done with the planning and budget cycle. But, little do they understand here that it would be of no use sending the IT people after the planning as things to be changed as early as possible in a project life cycle. The more delay in the changes, the more complex and expensive the project would be. The IT folks couldn’t communicate properly with the business about their ideas and strategy that confused the business and made them reject the ideas that were actually worth trying. In the market today, business is showing growing interest to partner with IT to make sure they get the value for investing huge in technology. But, still there is a gap between the two departments and the IT folks think that they do not have enough support from the business to ensure the value is realized for the organization. A good example of deep integration of IT and business is the recent firing of the Apple maps chief. The ill-fated Apple maps was the failure of both the IT folks who couldn’t develop an efficient app for maps and also the business who couldn’t gather all the requirements and couldn’t manage the project to achieve the desired output. As a result, the Apple exec Richard Williamson was blamed and fired for the disastrous project and humiliation for the organization. In the past, a good amount was spent by companies in new technological deployments. During this time, there are no returns. Post-deployment, there would be some value realization due to the initial efficiencies but this would be only for around six months. But, after this due to the increase in use, complexities increase which increase the costs. This may lead to losing belief in the initiative but if the faith is carried on, value can be realized by applying people,...

References: McKeen, James D; Smith, Heather (2012). IT strategy: Issues and practices (2nd ed.). Boston: Prentice Hall. Kindle Edition.
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