Case Study
Words 500
- 1. Summary
This is a case study of logistics and transportation giant DHL the organization desires to integrate its IT system with its business strategy. The CIO of DHL USA and Canada believes that managing a successful IT system in an organization is no easy task. If the system is centralized then it may be more cost-effective and the technologies will be more uniform across the organization. On the other hand, a decentralized management would be more local in its approach and more independent.
The organization created three major supercenters which catered to three different important geographic locations. The first in Malaysia contributed to the Asia Pacific region, while the one in Scottsdale Arizona was responsible for North America and Canada while the latest supercenter in Prague was responsible for Europe. However, by creating three major IT supercenters the management became too much centralized and there was a disconnection between the IT spending and business strategy, although the company admits that there were advantages associated with lowered costs.
What the organization decided to do was to have a system which was neither completely centralized nor a totally local setup which was not practical. They decided to separate the supply and demand side of IT in the business. They have separated the supply side of IT and have put the IT demand under business control, therefore, demand managers report to the regional CEO, this was done to integrate IT spending with the business strategy. This will not only lead to cost saving through supercenters but also the localized reporting will make the IT spending more relevant. The Express Business IT or EBIT demand is managed at the regional level but a small group under one single CIO oversees and coordinates the various operations worldwide. Although this may be new for all the employees as they deal with new changes and new relationships and responsibilities DHL does plan to train and develop the Employees so they adjust successfully into the new structure.
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