¶ … Alcan Case
Although there are many drawbacks to Alcon's current application management, there are justifications for the current IT management system. The current Alcon application management structure, prior to Robert Ouellette's overhaul, emphasizes a culture of decentralization (Dube, Bernier, & Roy, 2009, Pt. A). This decentralized model is logical, in part, because it allows each practice group to structure its own strategic IT plan and choose its infrastructure based on each group's specific needs. Such a hands-off model permits the groups to pursue their own objectives, without regard to impediments or resistance from any one of the other practice groups. This is particularly relevant when one considers the income distribution among the four major practice groups, specifically the Bauxite & Alumina group (Dube et al., 2009, Pt. A). According to Dube et al., (2009), the Bauxite and Alumina group contributes the most to annual revenues; however, Figure1 indicates that just 7% of the annual income is distributed to this group. This means that the Bauxite and Alumina group has much higher costs than the other three groups -- income being the difference between revenues and costs. Accordingly, the Bauxite & Alumina group's IT organization has much more incentive "to meet the specific needs of their own business group" -- needs which can be met without regard to the needs of any of the other three groups, which apparently have lower costs than Bauxite & Alumina (Dube et al., 2009, Pt. A, p. 3).
Another arguable "pro" of the current system is that it permits the groups to remain focused on their own needs through mergers and acquisitions. By way of example, the acquisition of Pechiney may not have had a large impact on the Packaging and Engineered Products groups' operations, but it likely significantly altered the Bauxite and Alumina group's production, as Pechiney utilizes an electrolytic process "reputed to be the best...
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