At RR communications, it is obvious there is a problem that needs to be handled if they are to avoid losing customers. The problem lies with the decentralized operations where each business unit has a mandate to operate independently. The business units have the power to make and implement new projects and make decisions without having to involve the whole firm. This has led to many problems such as customers complaining of having receipts for each of the four products offered by the company and would prefer having one receipt for all their transactions. Due to the division among departments, the company has been unable to meet reporting requirements for the Sarbanes Oxley Act. It has proved obvious that a shared IT service, which is standardized among all the units, is needed to ensure everything goes well. The first problem we see at RR Communications is that there is a definite lack of centralized and concise IT governance. Currently all of the separate functions of the company have their own individual leadership with no central leadership. For this reason, each of the sections takes actions and makes decisions based only on how it affects their own particular departments. There is no coordination to ensure that the act of one area does not negatively affect the rest of the firm. This in turn has led to a significant lack of uniformity across the organization, which is hurting customer relations. There are unified databases and each section maintains their own set of records; this is causing great frustration among their customers who continually have issues when dealing with more than one area. Much of the division of departments has been caused by a lack of central leadership. The CEO of the firm has failed to unify the department or assert any control over the individual IT vice presidents. Even though they reported to him, each had acted entirely independently. This continuous failure of leadership has caused the department heads to develop a sense of isolation and self-survival. Even though a new executive VP of IT has been appointed to bring unity to the firm, there has been severe resistance as each department feels it will suffer. The lack of centralized management for so long has caused significant discord between the departments that will take considerable effort to overcome. In addition, this company attitude has filtered down from the VPs to the middle and lower management creating an overall atmosphere that is dangerously disjointed. Even the suggestion of bringing together the database systems and management has caused a near mutinous uprising and rejection of leadership. The current managerial atmosphere has been around so long, the attitude of individualism has been deeply imbedded in the corporate culture. While, individual thinking is useful to foster innovation and creativity, when the entire organization acts to satisfy only its individual requirements, the firm overall will suffer. Unless this attitude can be overcome, any attempt at bringing unity to the company will fail. From the technical standpoint, RR Communications is suffering from a severely fractured information management system. Every section of the company maintains its own individual customer databases, which are in incompatible formats. If a customer maintains relationships with more then one division, they get bills from each individual area. Customer issues often fail to get resolved because the departments do not communicate or share information. This is causing problems with diminished customer satisfaction. In addition, without a centralized database, full customer information and statistics are impractical to collect. In addition to suffering by not being able to collect detailed records, the company is facing regulatory issues by not being able to provide complete information on the company’s activities, and significant resources are being wasted to assemble simple reports. Currently management and associates at RR...
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