Nortel
Problem Identification
IT struggled to successfully support Nortel pre-shakeup. Now with the restructure, IT needs to find a way to structure itself in order to support the business properly and successfully.
Problem Analysis
Nortel had to evolve in order to stay relevant with its customers. This meant tearing down barriers between its product divisions and redesigning the organizational structure. In order to support the new structure, IT needs to assemble itself into a way that will allow it to support Nortel adequately and effectively unlike what it has done in the past.
Alternative Solutions (based upon assumption)
IT could form a Center of Excellence (COE) where its employees would work with the business by providing support, research, training, and best practices. A COE would be responsible for understanding how the business operates and what can be done to both support current operations and improve upon them. It would be organized based upon function/process.
IT could organize similar to a COE – but have a centralized and decentralized COE – with the decentralized portions divided by geography. Even though processes can be global, different countries still have specific statutory requirements.
IT could operate as a matrix structure by both function and geo with the functions defined as client management, solution delivery and business support as in the case. However, Nortel would need to change the attitudes of its employees in order to gain their support.
Recommendation
In order to contribute to Nortel’s new strategy, the IT department must be dissolved and rebuilt with employees willing to embrace the change. However, Nortel needs to consider implementing an ERP. Its new strategy and realignment demand it. No longer can it rely on systems that have been customized by its once separated divisions. Because of this, no one can ensure that identical systems are being utilized by the new structure. IT leading a project to implement an ERP would maximize its contribution to Nortel’s strategy. Once implemented, since Nortel operates globally, a separate COE should be formed to support each geography as well as a main COE located at the HQ office for global process development. This would allow for both centralized and decentralized processes. Not only would the COE