Alcan Information Technology Infrastructure

Alcan Information technology infrastructure
Name
Module 2 case
ITM 491 Mod 2 case
Instructor
Date
Introduction
Alcan is a Canadian based aluminum manufacturer with headquarters in Montreal. There was a need to change the company’s IT infrastructure which had become inefficient, and Robert Ouellette who joined the company in 2006, was tasked with implementing new changes in the company’s information management. Ouellette noted that the company relied on a widely decentralized IT system that made coordination difficult, with the parent company providing most IT services for Alcan. As such, the company required new IT infrastructure including communication systems, VoIP services networks, data repository systems and other applications. Essentially, Alcan needed a standalone IT infrastructure that would be effective following the recommendations of Robert Ouellette. This essay focuses on the pros and cons of the current Alcan technology infrastructure, those of the new Alcan technology infrastructure and proposes additional improvements of infrastructure for this case and justifies your suggestions
Pros and cons of the current Alcan technology infrastructure
The current Alcan technology infrastructure is decentralized, while the company has focused on an aggressive strategy of mergers and acquisitions. Essentially, the company is vertically integrated with a well established value chain. The main benefit of the decentralized IT strategy is that the company has greater control over information management (Dube et al., 2009 a). This was also related to the level of autonomy in the company where different groups oversaw their IT management. The company was also able to utilize analytics to gain greater insight on the company’s performance in diverse units of the company. The decentralized IT infrastructure also had the potential to improve business units as the Enterprise Resource Planning (ERP) system could allow the company to focus on long-term growth through improved business divisions.
Nonetheless, with the challenges facing the company’s IT management there was need to revamp the IT infrastructure. There were cons (drawbacks) to the decentralized IT management, as the non integrated system was highlight inefficient. The main challenge is that the company is unable to share timely and relevant information, as it is reliant on a fractured and disjointed IT management. Since the decentralized system made it harder to share intelligence, the company was uncompetitive in comparison to rivals who had a more centralized IT infrastructure. Even though, decentralization has the potential to improve accuracy and dissemination of relevant information, there is poor coordination which is hampering the company’s business operations.
Pros and cons of the new Alcan technology infrastructure
One major challenge is that the company is unable to share timely and relevant information, and proposed new IT infrastructure is a more centralized system that seeks to improve the existing system. It is easier to access information since data is stored in centralized electronic databases, which allow faster and easier retrieval of information from diverse business units across the world. The new strategy also has the potential to facilitate control of the outsourcing strategy, allowing the company to have more control in making important decisions affecting the company’s operations (Dube et al., 2009 b). Essentially, the new enterprise adopted was more convenient for the organization allowing more coordination and management of IT investments as the company management had more control on technology infrastructure. With greater coordination of business operations, it was possible to obtain an overview of the company&...