【正文】 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 items STEP ２ Consolidation into a practical score card STEP ３ Definition of “Two Headings/Four Subheadings” Factor analysis of framework elements Creation of detailed questions Concentration into essential questions 2/4 Framework factors 125 Detailed questions 25 Score Card questions MITI 16 Key points of score card creation 1. In light of the basic role played by IT governance in corporate management, the score card is designed to be filled in by the CIO himself (or an executive of similar status) ? Avoid wherever possible detailed, technical questions. 2. Limit the number of questions taking into consideration the time required. ? Should take no more than 30 minutes to plete (no more than 30 questions). 3. Balance the number of questions among the two headings (“I. Top Management Decisionmaking Structure” and “II. Performance of Staff Functions”) ? Balance is essential to IT governance. 4. Make the score easy to pute. ? 25 questions 4 points =100 points MITI 17 IT Governance Score Card Questions (BCG proposal) Staff functions 3. Governance support functions 1. President/ CEO 2. CIO Head Office IT Department (Information Systems Department) 4. Business unit service functions IT strategy discussion/decisionmaking Business unit I. Top Management Decisionmaking Structure II. Performance of Staff Functions Basic Framework for IT governance Top management team 1) Role of president/CEO and functions of the top management meetings and board Q 1: Awareness of business environment Q 2: Position of IT in management reform/business reform Q 3: Indicate intentions regarding IT utilization Q 4: Forum for discussion of IT strategy by top management Q 5: Use of IT by top managers themselves Q 6: CIO’s fulltime position or concurrent position Q 7: Positioning of CIO within top management 2) Role of CIO Q 8: Role and expectations of CIO Q 9: Mission of CIO Q 10: Authority of CIO Q 11: Skills of CIO Q 12: Relationship of CIO to user divisions Q 13: Involvement of CIO in operations 3) Support for top management, support for panywide optimization Q 14: Organizational design of head office IT department Q 15: Voicing of opinions on IT strategy to top management Q 16: Prioritization of pany’s investment projects Q 17: Management of skills of pany IT personnel Q 18: Literacy management Q 19: Use of unified, standardized architecture for panywide optimization 4) Support to user divisions Q 20: Communication with user divisions Q 21: Applications management Q 22: Information management Q 23: Service (cost) management Q 24: Project management Q 25: Performance reviews MITI 18 IT Govern