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Building IT function for a Global Business

Building IT function for a Global Business. Manpreet K Goraya. Contents. Background. Global integration. Transforming IBM’s IT function. Positioning BT/IT for the future. Background. Merger of three companies in 1911 in NY

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Building IT function for a Global Business

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  1. Building IT function for a Global Business Manpreet K Goraya

  2. Contents Background Global integration Transforming IBM’s IT function Positioning BT/IT for the future

  3. Background • Merger of three companies in 1911 in NY • Computing-Tabulating-Recording; machinery, equipment like meat and cheese slicers • Large-scale tabulating business solutions • 1940’s- Entered computing business. • 1952- Introduced first large computer. • 1960- Unbundling software and services

  4. Problem • IBM sold- technology managers/ centralized departments. • Individuals and divisions purchased own computers • Loosing money from 1990’s.

  5. Changes • Restructure and consolidate the business. • Cutting expenses • Integrate solutions and services.

  6. Global Integration • Globalizing and standardizing processes. • Introduce common systems and processes. • Partnership between IT and business processes • BUSINESS TRANSFORMATION and IT

  7. Transforming IT function • Made it centralized • Global technology services worked with Global Business Services. • Integrate IT within BU

  8. 2009 Transformation • Streamlined IT structure • A Run (with GTS and GBS) • 3 transform (Set standards) • 5 horizontal IT functions (across run and transform).

  9. Run organization • Worked with GTS and GBS. • Cost savings by setting standards. • Found standards looked for author otherwise dropped • Reduced from 121 to 20. • Common services

  10. Transform organization • Identified level 1 processes • Assigned enterprise process owner (EPO/VP) • VPCEO • Level 2 processes for level 1. • Process owner and KPI • Transform executives • Changes for new business functionalities

  11. Horizontal structure

  12. Shared services • Identified shared services. • Standardized, integrate and streamline global processes

  13. IT prioritization • Allocated IT budget. • Voted on important projects. • Allocated IT budget.

  14. BT/ IT for the future • New positions-Project managers, business analysts. • Cross process expertise • More opportunities for advancement.

  15. Question • Why was IBM loosing money in 90’s? • It shut down some of its important operations • It didn’t establish relationships with individuals and divisions which started buying their own computers • The demand for computer and services started declining • It wasn’t loosing money!

  16. Question • Why was IBM loosing money in 90’s? • It shut down some of its important operations • It didn’t establish relationships with individuals and divisions which started buying their own computers • The demand for computer and services started declining • It wasn’t loosing money!

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