Managing Technology change Homework Help

Managing Technology change

Part 1
In the history of Intel Information Technology Company, 2006 was the year of true transformation for the organization. It conducted a comprehensive assessment that led to substantial organizational changes, ratification of key programs, stopping some internal programs and launching others. According to the managing director, John “JJ” Johnson, the organization was transformed into a more nimble and focused Information Technology Operation though the changes were very difficult to implement. (Hoganson, 2008) .The company deployed automated wireless network access to one site to allow easy and effective collaboration of its workforce throughout the world. The improved website (www.intel.com/IT),gave its customers better access to latest information about their operations and technology .In addition the organization launched the IT @Intel blog (blogs.intel.com/IT),where many of their IT leaders could discuss industry issues such as high performance and leading-edge IT organization (Thompson & McEwen, 2007). The organization focused on three major strategic objectives: Increasing Intel’s profitability by working with Intel business leaders to plan, build and deploying new strategic capabilities to maintain Intel competitive; setting the standard for operational excellence inside Intel and throughout the IT industry; making Intel IT a great place to work. The significant organizational changes were driven by creative and brilliant employees and people who make up Intel’s IT team not forgetting their mission of delivering IT capabilities that keep Intel running and enabled growth. It is also worth noting that the need for improvements came from their competitors such as AMD Company, a multinational IT company.

Part 2
In planning the actions required to achieve their objectives, the organization was flattened by reducing layers of management and increasing the number of employees who reported to each manager, duplication of roles within IT was reduced and the overall headcount was reduced by 14 percent. The management decreased the layers of middle management, making a less hierarchical organization to improve decision making process and allow managers and the staff to communicate more quickly (Aldrich, 2007). This decision also accelerated the company’s ability to deliver on its commitments. The IT governance model for decision making was completely re-engineered to enhance accountability. A corporate level governance and a revised funding model were introduced with the aim of decreasing total IT spending versus Intel revenue by 1 percent in the next five years from 4.7% to 3.7%.In its new models the CIO would provide oversight of IT spending by both the IT organization and the non-ITY groups .With this framework, it could better control standards and investment decisions and align IT spending to Intel’s overall corporate strategies, values and priorities (Benjamin & Levinson, 2009). As part of reorganization, the management created four major business units (capabilities) within IT that aligned directly to their Intel business partners. These units included customer capability that worked with Intel’s sales and marketing group emphasizing the need of Intel’s customers, the supply network capability that would interface with Intel’s materials and manufacturing organizations in four critical areas in supply chain: plan, source, make and deliver. The platform capability supported the Intel organizations that developed technologies for Intel’s Digital enterprise, Digital home, Digital Health and mobility platforms as well as the corporate Technology group and Software and Solutions Group. Platform Capability provided engineering tools and products design capabilities. Last but not the least is the Enterprise Capability that provided the IT infrastructure for the corporation and the IT organization .Working with Intel’s legal, finance and human resource groups, this group maximized Intel’s finance applications, human resources, legal systems and IT management systems at large (Longley and Shain, 1985).
Part 3
In managing implementation, Intel developed a plan to increase their server usage capacity and efficiency while keeping costs down .This was achieved by increasing the computing system utilization to 80% or more, actively refreshing servers on a four –year cycle, significantly decreasing the number of data centers worldwide all these strategies aimed at cutting costs. The Data center Virtualization (DCV) was another strategy that enabled Intel to remove the physical, geographic and organizational boundaries for sharing compute servers. Through data center virtualization, the management removed the dependencies to specific machines allowing applications to compute where servers were available on global basis (Archibald, 2009). Since not all design activities could benefit from DCV ,those that accounted for about 70 percent of the batch demand ,and an impressive 50 percent of all compute cycles ,the management increased their batch computing utilization from 55 to 66 percent yielding an estimated return of USD 77 million .For every additional one percent ,they earned an estimated return of USD 7 million. The management adopted strategies to deliver a more efficient high-performance environment to their engineers such as the improved data center strategies that gave the engineers increased capability, allowing their product teams to continue to deliver products ahead schedule (Perrow, 1999). Intel also improved the efficiency of their system management process and tools adding 3,500 devices per day. This strategy improved individual productivity tenfold which reduced the client and server build times by 50%.
In managing resistance, since most argued that for a company like Intel which runs on information and data, employees could be the best security or the greatest risk. The management emphasized personal behavior and accountability by focusing on data and infrastructure protection. It matured its incidence response capabilities and compliance with appropriate laws, regulations and policies. Management made keeping Intel legal, ensuring availability of critical information, applying the proper level of protection to Intel information assets and assisting their corporation in accepting the appropriate level of risk their priority.
Part 4
As to what extent the change was successful in meeting its objectives, The organizational change brought positive implications that left 79% of managers empowered in making decisions about employee performance,82% of the managers wanted the process to be repeated the following year. Managers saved 3.7 hours per employee on average. The organizational change achieved 72% in training and career development participation, 90% in IT employee satisfaction with training programs and 89% in IT employee satisfaction with manager’s communication. In addition Intel gained 72,500 wireless users in 2006 compared to 66,000 in 2005, it provided low-cost options to employees saving USD 2.4 million per year, more than 4.8 million e-mail messages were delivered daily on average compared to 3.9 million in the year 2005, An internal blog community with 91,246 blog users and 2,219 bloggers, the deployed sites received more than 10,000 unique visitors in five months with more than 10,000 product downloads. The activities that were begun in 2006 achieved a net present value of about USD 158 million with a projected USD 428 million NPV by year 2010.
Further related changes are important now that Intel has new IT management structure in place, further changes will tune it to reach a steady state throughout the organization as quickly as possible (Ashmos and Huber, 2007).The IT governance model for decision making and accountability must be made to work and work well. According to Intel CEO, John “JJ” Johnson, the management is always committed to helping transform the organization while at the same time reaching new level of IT performance. It will always look forward to the challenges ahead.

Stakeholder Analysis

According to the above figure in relation to the Intel Information Technology Company, the high power and interested people are in the top management level for they are the ones that must be full engaged and efforts should be made to satisfy them. In the high power and less interested, it is important to keep these people in the state of satisfaction but not so much as they end up becoming bored with the message of change. In the low power and interested, it is important to keep these people thoroughly informed to ensure that no obstacles arise. People under this category are the company’s staffs who are very helpful with regard to the detail of the project. Lastly, under low power and less interested, it is necessary to monitor people under this category but excessive communication to them would make them bored.
7S Framework

The 7-S model provides a description of 7 factors which are interrelated and are important in organizing a company in such a way that it is holistic and effective. It is composed of hard and soft elements, with the hard element consisting of Strategy, Structure and Systems while the soft element consisting of Shared Values, Skills, Style and Staff. The 7-S model can be applied in Intel Information Technology Company which underwent organization change. The company experienced a lot of challenges in implementing the change and this can be explained well by the model. One of the gaps that the company experienced was the skills of its employees which were not at par with the technological change initiated with the management. Another gap was the staff coordination which needed to be taken care of to ensure full cooperation and team spirit.

References
Aldrich, H.E. 2007. “Technology and Organizational Structure: A Reexamination of the Findings of the Aston Group,” Administrative Science Quarterly, 20, pp.26-43.
Archibald, J.A. 2009. “Organizational change: Intel IT company”. AFIPS Joint organizational conferences: 903-906.
Ashmos, D. and Huber, G. 2007.”The Systems Paradigm in Organization Theory: Correcting the Record and Suggesting the Future,” Academy of Management Review, 12, pp. 607- 621.
Benjamin, R. & Levinson, E. 2009.”A Framework for Managing IT- Enabled Change,” Sloan Management Review, pp. 23-33.
Hoganson, K. 2008.”Alternative curriculum models for integrating computer science and information systems analysis, recommendations, pitfalls, opportunities, accreditations, and trends”. Journal of Computing Sciences in Colleges 17 (2): 313–325.
Longley, D and Shain, M. 1985. Dictionary of Information Technology (2 ed.). London: Macmillan Press, p. 164.
Perrow, C. 1999.”A Framework for the Comparative Analysis of Organizations,” American Sociological Review, 32, pp. 194-208.
Thompson, J.D. & McEwen, W.J. 2007. “Organizational Goals and Environment: Goal Setting as an Interaction Process,” American Sociological Review, 23, pp.23-31.