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How Should IT Be Set Up? A Multiple-Case Study of IT Cost Optimisation in the Manufacturing Industry

Björkén, Sixten (2014) MIO920
Production Management
Abstract
Technological development and capabilities are driving IT costs up for many manufacturing companies. The importance of having a lean and efficient IT organisation in place is therefore of increasing importance in order to control these costs. This study aims at investigating how large manufacturing companies most effectively can tackle the challenges of a growing pressure on the IT department to deliver more value for less money.
Based on an extensive literature review and several open interviews with experts in the field, six major areas of investigation were identified and a conceptual model was developed. The model was used as a basis for three semi-structured interviews at three different case companies. Finally, a second round of... (More)
Technological development and capabilities are driving IT costs up for many manufacturing companies. The importance of having a lean and efficient IT organisation in place is therefore of increasing importance in order to control these costs. This study aims at investigating how large manufacturing companies most effectively can tackle the challenges of a growing pressure on the IT department to deliver more value for less money.
Based on an extensive literature review and several open interviews with experts in the field, six major areas of investigation were identified and a conceptual model was developed. The model was used as a basis for three semi-structured interviews at three different case companies. Finally, a second round of interviews were conducted; two in the form of follow-up interviews and one at an additional, fourth, company. A gap analysis of the empirical data and literature inspired the creation of a conceptual framework listing the major components of IT cost optimisation in large manufacturing companies.
The empirical findings suggest that, despite many similarities, there are important differences in how IT is set up in manufacturing companies today – mainly in questions concerning the degree of centralisation, the size of the retained IT function and how IT costs are charged for.
The result of the gap analysis between literature and empirical findings inspired the creation of a framework listing four major parts that need to be addressed separately: the IT demand organisation, the IT supply organisation, IT chargeback and business case follow-up. Practical guidance is presented in each of these areas as to how they should be structured. (Less)
Please use this url to cite or link to this publication:
author
Björkén, Sixten
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
other publication id
14/5487
language
English
id
4519407
date added to LUP
2014-06-26 13:43:26
date last changed
2014-06-26 13:43:26
@misc{4519407,
  abstract     = {{Technological development and capabilities are driving IT costs up for many manufacturing companies. The importance of having a lean and efficient IT organisation in place is therefore of increasing importance in order to control these costs. This study aims at investigating how large manufacturing companies most effectively can tackle the challenges of a growing pressure on the IT department to deliver more value for less money.
Based on an extensive literature review and several open interviews with experts in the field, six major areas of investigation were identified and a conceptual model was developed. The model was used as a basis for three semi-structured interviews at three different case companies. Finally, a second round of interviews were conducted; two in the form of follow-up interviews and one at an additional, fourth, company. A gap analysis of the empirical data and literature inspired the creation of a conceptual framework listing the major components of IT cost optimisation in large manufacturing companies.
The empirical findings suggest that, despite many similarities, there are important differences in how IT is set up in manufacturing companies today – mainly in questions concerning the degree of centralisation, the size of the retained IT function and how IT costs are charged for.
The result of the gap analysis between literature and empirical findings inspired the creation of a framework listing four major parts that need to be addressed separately: the IT demand organisation, the IT supply organisation, IT chargeback and business case follow-up. Practical guidance is presented in each of these areas as to how they should be structured.}},
  author       = {{Björkén, Sixten}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{How Should IT Be Set Up? A Multiple-Case Study of IT Cost Optimisation in the Manufacturing Industry}},
  year         = {{2014}},
}