This paper examines the change in IT management model at Hydro-Quebec that occurred at a time when technology and business units took various measures to improve control returns on IT-invested capital. The paper discusses the external factors and internal factors that resulted in the change IT management model at the firm. Since managing technological change is a challenging process, the article includes suggestions to improve the process at Hydro-Quebec.
Hydro-Quebec's IT Management:
Hydro-Quebec is a firm that generates, transmits, and distributes hydroelectricity in the Canada's largest electricity generation network. As the firm seeks to become a leading company in energy across the globe, it also conducts innovative research in its specific field. In addition to being one of the leading firms in Canada's largest network of producing, transmitting, and distributing electricity, the firm is also one of the largest electricity producers across North America. The company's mission is to supply power and seek initiatives that are related to energy as well as other fields that are related to energy or power. The firm has been able to generate and market its electricity at more competitive prices because it relies on hydraulic power to produce the electricity. The ability of the firm to produce, transmit and distribute electricity at more competitive prices contributed to huge profits in 2004 as the energy market was characterized by large discrepancy in prices.
Reinventing IT Management at Hydro-Quebec:
Many companies experienced significant changes in the way Information Technology was organized towards the end of the 1990s because of the efforts by technology and business units to improve control returns on IT-invested capital. Since this trend affected many companies across various industries and sectors, Hydro-Quebec was also affected by the changes. Before these changes occurred, the company had adopted various Information Technology management movements that included centralization and decentralization. However, at the end of the 1990s, the DDMA or Applications Development and Maintenance division was mandated with the task of carrying out all of the company's technology-related projects. This division is also responsible for developing norms and procedures and acting as the guardian of all technology-related activities at Hydro-Quebec.
The foundation of a new Information Technology management model was established by the discussions and deliberations among the business units and IT divisions at the firm. At the beginning of the 2000s, the company decentralized decisions associated with all types of technological investments and gave decision-making process to the business units. A similar approach to IT management was also applied to Information Technology budgets as they were also handed over to business units. The reinvention of IT management model at the Hydro-Quebec Company was also coupled by the establishment of the Shared Services Centre. The establishment of the Shared Services Centre was geared towards separating governance from the provision of services. Actually, this initiative left decision-making of all technology-related activities to business units that became totally accountable for their investments in IT. On the other hand, the Shared Services Centre became an internal supplier and consultant of IT projects to the business units through its four IT units.
External and Internal Factors Affecting Change in IT Management at the Firm:
The reinvention of the IT management model or change in IT management at Hydro-Quebec was affected by some external factors and internal factors. The external factors include the emergence of the trend by technology and business units' attempts to improve control returns on IT-invested capital towards the end of the 1900s. This was a major external factor in Hydro-Quebec's change in IT management since it affected the way IT was organized in many companies across several industries and sectors (Dube, Bernier & Roy, 2007, p.4). As a result of the new trend, Hydro-Quebec was forced to reinvent its IT management model in order to adapt to changes in the business environment. The second external factor that contributed to the change in IT management was the relationship between the firm and its customers. As the company's business environment was characterized with significant changes, there was need to have effective customer relations. Hydro-Quebec transformed its customer relations through the launch and establishment of the Shared Services Centre in the early 2000s.
On the contrary, the internal factors that affected the change in IT management at Hydro-Quebec included the deliberations and discussions among the firm's IT divisions and business units. These deliberations and discussions provided the basis of the change in IT management through providing the foundations for a new IT management model. The second internal factor behind the change is the internal restructuring process in which the technology and business units were separated and mandated with distinctive tasks and responsibilities.
Proposed Changes:
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