Harri Hyvönen Project Researcher 3.3.2011

1. Research Plan;The comparative research for decision making criterias in enterprise´s and municipal´s IS outsourcing cases Enterprise Architecture Harri Hyvönen Project Researcher 3.3.2011 IT Production Processes Adapting Financial Management Change Management IT Sourcing IT Strategy IT Development CIO

2. My ”strenghts” in CIO Academy: • Experiences in largeenterprisescases • Largenetwork on ICT business • Pragmaticway to copewith IT issues • New connections to publicsector • Access to oneenterpriseongoing case • My ”weaknesses” in CIO Academy: • Long timefrom my studies in Universityworld • Understanding and adaptation of universityrules and processesstillprettythin • A lot of theories to learnmore… The biggest challenges are right now own time planning, key focus on dissertation and right research questions JYU MBA program Harri Hyvönen Project Researcher 15.2.2011 National ICT restructuringprograms IT SourcingCourse K-S ICT strategy Enterprise cooperation Reading Family Writing

3. Draft for discussion purposes! Dissertation Schedule 6/10 6/11 6/12 6/13 Start 28.6. Final version2013 1st Draft Data collection Analyzing data Theoretical framwork Publishments Dissertation documentation Finalization

4. Supervisors Tomi Dahlberg, ResearchDirector, University of Jyväskylä InformationTechnology • Jukka Heikkilä, Professor & Vice Dean • University of Jyväskylä • InformationTechnology • Pekka Neittaanmäki, Professor & Dean • University of Jyväskylä • InformationTechnology

5. Background – IS research • IS “own” research theories are quite few and emerging (prof. S. Pohjonen lecture 22. feb 2011) • Theredoesn´tseem to be in IS outsourcingliterature a single methodnortheory, which is usedwidelybyallresearchers (Information Systems Outsourcing: A Survey and analysis of the Literature – Dibbern et al 2004 The database for advances in Informationsystems) • IS (Information Systems) /IT Outsourcing is howeverquitemuchresearchedduring the lastdecade – it is easy to findtens of articles and book, whichhandlesrelevantoutsourcingissues

6. All the studies My researchapproach Studying the real world Mathematical studies Natural/social sciences, “value-free” studies (how and why things are) Design science, “value-laden” studies (utility of innovation) Innovation- evaluating studies Theoretical studies on reality Empirical studies on reality Innovation- building studies ? Theory-testing studies . dissensus . consensus Theory-developing studies . dissensus . consensus Järvinen P; The classification of studies

7. Key question(s) • Canwefindthat an enterprise´s and munipal´soutsourcingarebased on the samecriterias? • Outsourcinghasverywidemarkets. Is thatdriven in IS bycostefficiency as claimed in existingtheories (egTransactionalCostEconomytheory, Williamson O.E. 1985)? • How does IS Outsourcingdecisionbehaves (rationally <-> irrationally) • eg. Clemons Eric K., Thatcher Matt E., Row Michael C. 1995. Identifying sources of reengineering failures: A study of the behavioral factors contributing to reengineering risks. Journal of Management Information Systems, Vol 12, No. 2, Fall 1995, 9-36 • 40,2% of the FinnishcompaniesInformationTechnology is outsourcedbutonly 52% has set targets for outsourcing (TTL, IT Barometri 2010, Finland) => Whenpracticalcasesmightnotwork as theory, is somethingmissingfrom the existingtheories?

8. ”How the presentoutsourcingresearchfits to challenges on public and privateorganisation´stransformationneeds” • Especiallylarge Finland basedenterpriseshaveinvested a lot in IS during the lastdecade • Butenterpriseshavestillsomechallenges • Financialchallenges to increasecostefficiency • IS hasbeen the biggestgrowthenablerrecently BUT this is seenslowingdown • Ratiobetweendev/operativecloser to 50/50 • Developmentprojectsuccessrategenerallylow, especially in largeprojects • Highratio of legacysystems • Competition for competencies • Highcompetition / offering => supply in manyhands • What to ”outsource” and how - keyquestion is howvaluechaincanbeextendedefficiently • Governancemodel • Need for rapiddecisionmaking • Enterprise Architecturefocus • There is 342 municipals in Finland, where 23 in Central Finland • Muicipalshave big challenges • Hightotalspend ~1 billioneuros 2009 • Highretirementdevelopment in comingyears, depending on organisation • Ratiobetweendev/operativeapproximately 10/90 • No common ways to manage IS • Large national restructingprograms (Ministry of financial, SITRA/KPK ICT, severalprograms) • IS management scattered and withgreatdiversity • Lowcompetition / offering => supply in fewhands • Slowprogresswithverylimitedresults • What to ”outsource” and how • Governancemodel • Decisionmaking • Regulations

9. Researchmethods • Data and contentfrom • Central Finland´s IS strategyproject • One largeenterprise case, whereoutsourcing is going to happen in widescale • Multiplecasesmethodology to beused • Strategic Management theory to beapplied • TransactionalCostEconomics (Williamson O.E 1981 TransactionCostEconomics) to beappliedalso as theoreticalframework? • The firstpaper is in progress • target IRIS seminarium (August 16th – 19th, 2011, Turku Finland • Monogramorarticlesbaseddissertionstill a bitopen

10. DRAFT The comparative research for decision making criteriasin enterprise´s and communities' process and IS outsourcing cases –Proposed papers Governance Outsourcing Study Processes Public / Municipal IS Cost IT Quality Enterprise / Outsource DS IS Architecture Enterprise / Life Cycle Costing IS Outsourcing and trust? Public / Municipal IS 2? Competency

11. Q & A

12. Background? • topic of the PhD thesis, its format (collection of papers or monograph) and the supervisor(s) • the status of the thesis and the expected finishing time • background and main scientific contribution of the PhD thesis as well as results expected to be obtained and applicability of the results to be obtained and • which part of the thesis is the talk related to.