McGill University, B.Com. & M.B.A. programs
273-432 & 273-636, Information
Systems Administration, Winter 1997
STUDY QUESTIONS AND DISCUSSION QUESTIONS FOR TUESDAY, APRIL 8
Case:
Eastman Kodak Co.: Managing Information Systems through Strategic Alliances
Theme:
OUTSOURCING
1. (Anh Thi Nguyen, John Alexander.) "Throughout 1989, Hudson inaugurated a series of organizational initiatives that not only would dramatically change the IT function within Kodak but would rock the industry" (p. 2). Describe the business environment facing Kodak in the mid-to-late 1980's which resulted in the need for these initiatives.
2. (Shayne Mitchell, Danny Wong, Michel Kreidi, ) Provide a description of each component in the work-centered analysis framework for Kodak in the mid-to-late 1980's. The components are "participants," "technology," "information," "business processes," "products/services," and "customers." Then, provide explanation of why you believe Kodak's IT was effective (or ineffective) and efficient or (inefficient).
3. (Scott Godfree, Stuart McLean, Glen Goldman, ) Consider the somewhat complex organizational structure and management control processes that Kodak developed to manage the "alliance organization" on a long-term basis (for instance, see Exhibits 8 and 9 and the text accompanying them). Give some examples that describe how Kodak traded the costs of direct control and operation of activities associated with running their corporate data centers, networks, and PC support for the costs of coordinating those same activities. Also, explain why you do or do not believe that these new costs outweigh the benefits of outsourcing.
4. (Popi Makris-Lambrinakos, Todd Savage, Mihai Maicaneanu.) Consider the operation of fulfilling a PC order (see Exhibit 10 and the text accompanying it) as a case, in itself, of what Kodak's outsourcing resulted in. What does this case tell us about the good side and the bad side of Kodak's outsourcing? What does this case tell us about what remains to be done to refine, streamline, or otherwise improve Kodak's "strategic alliances"?
5. (Arthur Kah-Git Wong, Mireille Nguyen, Jane Lu.) Imagine that Colby Chandler has hired you as a consultant and that it is June 1991. At this time, he is asking you to conduct a preliminary assessment of (a) whether Katherine Hudson's decision to outsource Kodak's data center operations, telecommunications services, and personal computer support was correct, (b) whether Hudson's decision to outsource with three different vendors was correct, and (c) whether Hudson's decision to outsource with two vendors (IBM and DEC) with no previous experience managing outsourced IT services was correct. Prepare a response to Chandler's request. (Possibly helpful reminders: refer to the material covered in class on April 3.)
6. (Kenneth Yau, Karim Samaali.) At the time of her appointment as vice president of CIS, Katherine Hudson had a general management background, but no experience managing an IT function. Explain why you believe she subsequently did or did not do a good job of managing Kodak's IT. Make your criteria explicit.
7. (Maya Chechelnitsky,Olivier Charbonneau.) In the teaching note to this case, Applegate writes that the Eastman Kodak case "challenges managers to revise their view of outsourcing from simple facilities management to management of a strategic partnership." How are partnerships (such as the ones that Kodak forged with IBM, DEC, and Businessland) different from other types of relationships between customers/clients and vendors/suppliers? (Think of a plausible answer; you cannot look this up in a book.) Also explain (speculate, if you wish) on what makes such a relationship a "partnership." Use facts from the case to explain how Kodak's relationships with IBM, DEC, and Businessland fit or do not fit your conception of "partnership."
8. (Abbas Khalil, Sami Rejeb.) A theme in this course is captured in the following general description of what we should be able to observe in the management of information technology at a company, where the company does it well: (1) the business strategy drives the information requirements, (2) the information requirements drive the information system, and (3a) the hardware/software system (in order to function effectively) drives the design of the organization and the business process, and/or (3b) the organization and business process (in order to function effectively) drive the design of the hardware/software system. Explain how well this general description applies to Kodak's management of its information technology.