Decentralized IT Systems

Paper Summary:

This paper analyzes the advantages and disadvantages of a decentralized IT system and management information systems (MIS). It discusses the need for greater time-to-market and competitiveness and the factors affecting cost reduction and efficiency. The paper also compares decentralization with centralization for organizations.

Table of Contents:
Executive Summary
Advantages of Decentralized Management Information Systems (MIS)
Disadvantages of Decentralized Management Information Systems (MIS)
Summary

From the Paper:

"- When organizations have organized teams into specific functional areas, for example logistics, supply chain planning and execution, marketing or engineering, a centralized IT structure is typically the best possible IT infrastructure to support the specific business strategies of these functional groups. CIOs who have specifically used this approach report clearer job descriptions and higher levels of morale, as employees are clear with regard to what is expected of them, according to CIO Magazine (2001). US Space Alliance's CIO Kathy Tamer reports that the centralization of strategic planning and integration, platform engineering and operations, application engineering services, data and documentation management, IT security, and user support services have made it possible to trim 17% of total staff levels through job re-assignment and attrition. The US Space Alliance anticipates savings of $300,000 per year due to centralization of these vital functions. What is impressive about this centralization strategy on the part of US Space Alliance is that there has been no need to relocate any member of the core centralized teams."

Sample of Sources Used:

• CIO Magazine (2001) - Next Stop: Centralization. Eric Berkman. CIO Magazine. September 15, 2001
• Hess (1996) - IS Reorganization: Centralization versus Decentralization. DCC Conferences, Gartner Group Research. Business Process Re-engineering. February 15, 1996

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