【正文】 Executive Managing Director 4 MITI 8 CIO has limited authority: ? Only responsible for (expense) budget and personnel of head office information systems department. ? Investment authority rests with director in charge of business divisions or director in charge of accounting. The ordinary CIO at a Japanese pany is in charge of managing information. Rather than being responsible for formulating IT strategy, he tends to manage the information systems anization. Range of director’s responsibility/authority Reporting systems of the IT department Officer Information systems department head Director Director CIO/Managing Director Managing Director President Division C Division B Division A Administration Department D Administration Department C Administration Department B Administration Department A Information Systems Department Information Systems Department Information Systems Department MITI 9 Profile of CIOs in the USA * Has since been replaced by someone else. Source: BCG interviews. Federal Express CIO: Dennis Jones Previous post: VP for marketing Tasks: Use and expansion of customer interface system。 satisfaction of customer needs and internal operational needs GE CIO: Gary Reiner Previous post: VP for strategy Tasks: Create integrated merits of IT investments across multiple divisions: ? Webbased EDI ? 6sigma (develop into a brand that goes beyond quality control) ? Discover and use information and technology that have been accumulated within the group. Man Stanley CIO: Kevin Parker** Previous post: Trader Tasks: Build and manage an interdivisional IT system “The CIO we’re looking for is like a triathlon athlete. First, he must be able to serve as a leader who can motivate those above and below him. Second, he must be able to think about business in strategic terms. Third, he must be able to handle extremely plex technical problems.” (Russel Reynolds) “We use IT to develop the most advanced distribution services in the world, of which our customers may not be aware.” “Share and use customer information that is scattered among several divisions. My job is to search for differentiated ways that no one else is doing.” MITI 10 IT Organization Patterns Decentralized type Suitability: Conglomerates。 panies for which builtin applications provide an advantage. Examples: GE (1980s), Motorola Centralized type Suitability: Single/similar businesses。 panies for which costs provide an advantage. Example: Walmart Mixed type Suitability: Portfolio panies able to capitalize on synergy. Examples: HP, GE (today) Profit Center type Suitability: Businesses that are extremely sensitive to costs Outsourced type Suitability: Companies with differing user needs and view petitive advantages, when these panies are not costsensitive. Intentionally designed or overhauled ＝ IT functions/responsibility SS Third party Information systems department Information systems department MITI 11 What Is Needed to Apply IT to Management Reform: From the Organizational Perspective The process of applying IT to management reform (= IT governance) is exactly the same as the process of forming and implementing strategy in corporate governance. Top management Staff, business units Organizational process Responsible principal Aware of business environment ? “Sense of crisis” Aware of strategy variables ? What can and should be controlled Formation of anizational consensus ? Clear articulation of the “anization” wishes to do Implementation/ measurement of results ? Implementation and followup of the results based on anizational consensus MITI 12 (III) Framework for Corporate Governance from the Perspective of Organizational Structure Top management Staff functions Governance support functions President (CEO) Responsible directors Line functions Business unit service functions Corporate governance/Corporate decisionmaking (II) Business unit (I) ... Core corporate governance functions MITI 13 Top management Example: Financial Governance Staff functions Governance support functions ? Financial strategy ? Fundraising strategy President/CEO CFO Finance/Accounting Department Business unit service functions ? Fundraising work, accounting process Line functions (III) (II) Business unit (I) ... MITI 14 Top management Designing of IT Governance Score Card Staff functions Governance support functions ? Formulation of IT strategy and planning President/CEO CIO Line functions Head Office IT Department (Information Systems Department) Business unit service functions ? Provision of services, development support IT strategy discussion/decisionmaking Arrange by Two Headings/Four Subheadings Structure of Score Card (III) (II) Business unit (I) ... I. Top Management Decisionmaking Structure 1) Role of president/CEO and functions of the top management meetings and board 2) Role of CIO II. Performance of Staff Functions 3) Support for top management, support for panywide optimization 4) Services to business units MITI 15 Score Card Design Steps Formulating BCG assumptions concerning basic framework of score card STEP １ Fleshing out of score card measurement ite