Facing The Digitalization Challenge: Why Organizational Culture Matters and How It Influences IT Governance Performance

Today it is not possible for the companies to compete without having IT as a strategic driver. That is why IT governance becomes crucial for managers to bring the most value from IT to the business. Additionally organizational culture is an important factor and often blamed when IT governance projects fail. However little in-depth research investigated how the organizational culture changes can improve the IT governance performance. This research is a case study of the IT department of a large company attempting to improve the IT governance while facing the digitalization challenge. In this case the IT department has an organizational culture change journey seeking to improve the IT governance performance. The results indicate that the initial clan culture orientation of the IT department has led to a successful IT governance performance in cost-effective use of IT. Furthermore, adhocracy is identified as preferred culture for improving IT governance for growth

Digital Transformation Success Through Aligning the Organizational Structure: Case Study of Swedish Public Organizations

A Digital Transformation fundamentally involves the implementation of one or more digital tools, which is a process often burdened with challenges. It is estimated that approximately 66 to 84 percent of the taken Digital Transformation initiatives are unsuccessful, which can be attributed to organizational shortcomings, more specifically structural ones. While public organizations regularly do not achieve the same success as those in the private sector, it was of interest to investigate the Swedish ones. Where 86 percent of residents use the internet to interact with public authorities. Previous research has singled out the IT organization to be the appointed leader of Digital Transformations, further research on that relationship is limited. Therefore, this study examines how the IT organization, in an agile environment, can align its structure for a successful Digital Transformation. To answer the discovered research problem, the following research question has been formulated: “How should an IT organization’s structure be aligned in an agile environment in order to achieve a successful Digital Transformation?”. This is research in progress and will be continued by conducting case studies in four public organizations. Data will be collected through semi0structured interviews and analyzed thematically. Finally, a presentation of different aspect of organizational structure alignment through digital transformation based on these cases will be provided

How Does the Organizational Culture of Collaborative Networks Influence IT Governance Performance in a Large Organization?

In today\u27s complex organizations, IT governance is an important managerial challenge. IT governance deals with decisions and responsibilities concerning IT. There are many factors influencing IT governance. One factor that has remained relatively unexplored by academic research is that of organizational culture. This research explores the influence of the organizational culture of collaborative networks on IT governance performance. A case study was conducted in a large complex company with several networks. The findings indicated that the networks desire different organizational culture types based on their priorities for IT governance outcomes. A clan organizational culture is desired when aiming for effective use of IT for asset utilization and cost effective use of IT. An adhocracy culture is desired when prioritizing the effective use of IT for business growth. Finally a combination of market and hierarchy organizational culture is desired when seeking effective use of IT for business flexibility and cost cutting

Information Technology Governance: The Role of Organizational Culture and Structure

Information Technology Governance (ITG) is among the most important challenges for the managers today. IT is not anymore just a supportive tool but also a strategic driver for the businesses. In the dynamic and competitive world of today, it is crucial for organizations to know how to govern IT rather than just to use it. IT governance deals with specifying responsibilities and decision rights to encourage the desirable behaviour from IT and generate value from IT investments. IT governance can impact the overall performance of organizations, however there are still difficulties in understanding IT governance and the factors that may influence it. Organizational culture and structure are among the factors that have significant influence on many issues in an organization. According to previous research, organizational culture and structure need to be considered when implementing IT governance. However, there is a lack of research focusing on how organizational culture and structure can influence IT governance performance and implementation. Thus, the main research question addressed in this thesis is: How are organizational culture and structure related to IT governance? To address this question, this research has performed literature reviews and conducted case studies to investigate the role of organizational culture and structure on IT governance. As the first step, the previous literature was reviewed to find the gaps in the research on culture and IT governance. As the next step, four case studies were conducted to explore the influence of organizational culture and structure on IT governance. Two case studies have investigated the relation between organizational structure and IT governance implementation and performance in large organizations; and two other case studies investigated on how different types of organizational culture influence IT governance performance outcomes. The results of this research respond to the research question by specifying the role of culture in IT governance through a categorization of prior research both from research and practice perspectives; specifying the influence of different organizational culture types on IT governance performance outcomes in different organizations; and by specifying IT organizational structure relationship with IT governance performance outcomes and IT governance implementation. The research presented in this thesis provides both theoretical and empirical contributions to the IT governance research and practice

The Role of Organizational Culture in IT Outsourcing Relationships: A Buyer Company Approach

Globalization has affected the organizations in different aspects such as structure, architecture, internal/external strategies and sourcing management. Outsourcing is one of the recent business strategies used to provide IT needs via external agents. The relationship between the service buyer and provider companies is a constituent playing a significant role in IT outsourcing success or failure. The questions in this research is" what is the role of organizational culture in ITO (IT Outsourcing) relationships?" This research has a focus on the influence of organizational culture of buyer companies on the specific factors of trust, cooperation, communication and commitment in their relationship with the IT service provider. A qualitative approach has been used and six global companies using ITO are selected to have interviews with their relevant managers which revealed the presence of organizational culture effect. Particularly, being innovative, having open discussion as an organizational culture, looking for extending contracts with providers as a strategy in organizational structure and responsibility and roles clarifying after outsourcing, appeared as the major differences between the six companies organizational cultures which influence the focusing aspects of ITO relationships in this research. Additionally there were some external factors found after the analysis phase which were out of the scope of the research theoretical framework such as previous experience of buyer company in outsourcing, IT governance and the value of IT in the buyer company. These extra issues can be linked to the organizational culture of the buyer company and affect their IT outsourcing relationships

Entrepreneurship Strategy of Foreign Enterprise in Latvia

Bakalaura darba tēma – „Ārvalstu uzņēmuma darbības stratēģija Latvijas tirgū”. Joprojām ir vērojama jaunu ātrās ēdināšanas tirgus dalībnieku ienākšana Latvijā, kas tikai daļēji ietekmē jau esošo ēstuvju darbības rādītājus. Šādā situācijā uzņēmuma darbības stratēģijas izvēlei ir īpaša loma, jo iespējams attīstīties augoša tirgū un gūt vērā ņemamus ienākumus un peļņu. Bakalaura darba mērķis ir noteikt MCDonald’s zīmola uzņēmuma attīstības un tālākas ieejas iespējas Latvijas tirgū. Mērķa sasniegšanai autors izvirza sekojošus uzdevumus: 1.pētīt tirgus ieiešanas stratēģiju būtību; 2.pētīt McDonalds attīstības stratēģiskos nosacījumus un problēmas ārzemēs; 3.analizēt SIA „Premier Restaurants Latvia” Latvijā; 4.veikt McDonalds zīmola ieejas stratēģiju izpēti Latvijas tirgū.The theme of bachelor’s work is „Entrepreneurship Strategy of Foreign Enterprise in Latvia”. There are still new fast-food market entry possibilities in Latvia, which only partially affect existing food-chain performance. In such a situation, the company’ s business strategy choice has a particular role in a growing market and gaining benefit from significant income and profit opportunities. The objective of bachelor’s work is to determine McDonald’s restaurant growth and further entrance possibilities in Latvian market. The author makes the following tasks: 1.to research market entry strategy nature; 2.to research McDonald’ s strategic development conditions and problems abroad; 3.to analyze SIA „Premier Restaurants Latvia” in Latvia; 4.to carry out research of the entrance of McDonald's brand in the Latvian market

The role of culture in IT governance five focus areas: A literature review

Information technology governance (ITG) is one of the top challenges of managers today and culture in different level can have an important role while implementing IT governance. This is a new and significant issue, which has not been investigated deeply. This paper sets out to provide a systematic review of the literature, focusing on the role of culture in IT governance. The literature review findings are categorized through the lens of IT governance’s five focus areas which are IT strategic alignment, IT value delivery, Risk management, IT resource management and Performance measurement. This study contributes to the field of IT governance by reviewing and discussing the existing literature on the role of culture on IT governance. This literature review resulted that there are few research studies in this topic and many of the IT governance focus areas are not covered regarding the role of culture in these IT governance areas