IT structures for the 1990s: organisation of IT functions in large companies: A survey

Abstract

How is the information technology (IT) function organised in large multi-business companies? A two stage postal survey investigated the distribution of responsibility for IT activities and the role of the corporate IT function in 50 times 100 companies. Results indicate that the vast majority of large companies have federal IT management structures - distributed responsibility for IT combined with some central functional leadership or guidance. Four approaches to the organisation and management of IT activities were identified: Centralised, Strategic leadership, Strategic guidance, and Decentralised. In companies with a Strategic Leadership IT management style, the corporate centre has a dominant influence over IT activities and is predicted to retain its dominance in the future. In companies with a Strategic Guidance IT management style, divisional and business unit managements hold most responsibility for IT activities and the role of the centre is predicted to decline in importance. Using responses from general management executives, results reveal that the degree of centralisation of corporate management functions and the importance placed on the central managerial planning and control roles are correlated with IT management style.