Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Management Theories Expert

Case Study: Eastman Kodak Company:
 
Eastman Kodak Company, with headquarters in Rochester, New York, is an international manufacturer of imaging and chemical products. In 1989, the company rocked the IS world by announcing strategic relationships with four suppliers to manage significant portions of its IS organization. Until that time, outsourcing had been viewed as a desperation move to improve poorly run IS departments. Because Kodak’s unit was well run, and benchmarked accordingly, its pioneering stance caused  many IS executives-and a few CEOs and CFOs as well-to seriously reconsider outsourcing. Kodak announced that one external service provider would operate its data centers and networks, another would manage its telecommunications, a third would handle PC support, and a fourth would manage voice messaging. Initially the agreement with IBM to manage the data centers was U.S based; it was later expanded to include Canadian operations, other U.S divisions, and eventually six international sites. Kodak encourages IBM to  leverage its data center for both Kodak and other companies’ work for improved efficiencies. Due to efforts on both sides, the Kodak-IBM relationship has worked well. They developed trust and good processes. When issues arise, the relationship has effective processes to deal with them.
 
Outsourcing Management Structure:
 
Kodak views its outsourcing management role as exercising leadership, staying in control, and managing the high value-added functions for flexibility. Kodak sets the tone for its key IT relationships. The key themes of that relationship have been collaborative (not adversarial), long-term mutual benefits (not short-term), and making systemic improvements on a global basis (not local). The management structure has six elements: a management board, an advisory council, a supplier and alliance management group, a relationship manager for each relationship, ad hoc working groups, and client surveys.

Management Board. This board meets twice a year  and includes senior management from both companies. It focuses on strategic issues in addition to any policies or practices on either side that are getting in the way of mutual success. It has dealt with international strategies, IT architectures, telecommunications directions, disaster recovery plans, and so forth.
 
Advisory Council. This council meets monthly and has 15 members. It handles technical and operational issues by focusing on what Kodak wants, not on how the services currently are delivered. Kodak’s trust in IBM has grown, thus it leaves more of the ‘how’ details up to this service provider. The advisory council reviews service levels, usage measurements and forecasts tactical plans, migration objectives, business recovery plans, and the like.
 
Supplier and Alliance Management Group. This group manages the longer term outsourcing relationships as well as other contracts with large IT suppliers. It works closely with IS management. This group of 10 people  includes a manager, the relationship manager for each primary alliance, plus support staff and supplier management for other IT sourcing. Initially, this group managed only the alliances. Contacts with major vendors were handled in other groups. Eventually all of these functions were brought together to increase their focus, leverage global agreements, and align the management of alliances and suppliers. About one-half of these people have IS background; the other half come from purchasing.
 
Relationship Manager. This manager is key to the success of a strategic relationship, Kodak believes, because this manager is the focal point between  the company and its service provider. The job of each of Kodak’s  four relationship managers is to ensure that Kodak receives more than just delivery on the contract. Thus, they also manage value creation. The relationship managers negotiate, coordinate, and manage agreements and ensure that service level agreements (SLAs) are established. SLAs are very precise descriptions of each service to be delivered, when, by whom, for what price, and such. Relationship managers also assist in pricing and billing strategies.

Working Groups. These groups were not part of Kodak’s original outsourcing management structure; they were added to deal with specific technology areas. They are chartered by the advisory council. Their goals are to facilitate changes in processes, promulgate standards, achieve business recovery in case of disruption, and promote effective use, of IS services. They have proven to be effective vehicles for talking about important issues, such as the timing and appropriateness of upgrading to new releases of software. The groups are represented mainly by operational people. For ex, database administrators form the major sites are in one working group.
 
Client Surveys. These surveys are sent out twice a year to nearly 5,000 internal users of the services. Feedback on quality, cycle time, and product and service leadership are assessed and shared with the service providers. Improvement plans are mutually developed to close perceived performance gaps.
 
Because Kodak’s outsourcing has such a large scope, draws on four main suppliers, and covers a large geographic area, the company has discovered that it needs all of these forms of coordination for effective supplier management.
 
Required:

a) Based on the exs given in the case study, discuss why managing IT outsourcing is different from managing an internal IS department.
 
b) Outline the key features of the  outsourcing management  structure adopted by Eastman Kodak that add value to its IS organisation. 

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M95936

Have any Question? 


Related Questions in Management Theories

In 2000 words summarise and analyse at least 6 scholarly

In 2000 words, summarise and analyse at least 6 scholarly sources on the topic of CSR and the Ecological Environment. The Literature Review should be based on scholarly articles written on the topic between 2008 and 2016 ...

Read the article below and complete a 1-2 page article

Read the article below and complete a 1-2 page article review. The article review should include the following: Summary of the article. What are the key points of the article? How does military conflict management differ ...

Identity the supply chain process of anti retro virus drugs

Identity the supply chain process of anti retro virus drugs by NACO of GOVT OF INDIA With its comparable to planning framework and enables with four different head 1.demand management 2.supply management 3. enablers 4. i ...

With the same talent management strategy in mind from

With the same talent management strategy in mind from Assignment 3, write a six to eight (6-8) page paper in which you: 1. Determine which performance management process you will employ to measure employee talent. 2. Ana ...

This milestone focuses on the topic of compensating

This milestone focuses on the topic of compensating employees. Using the material on compensation provided in this week's lesson and the case study, write a short paper in which you: Describe the compensation philosophy ...

Business marketing discusion 150 wordssupply chain

Business Marketing Discusion (150 words) Supply Chain Management • Supply chain management is instrumental as it pertains to marketing as marketing plays a key role in integrating supply chain processes and promoting col ...

The fine garments company sells fashion clothing the

The Fine Garments Company sells fashion clothing. The forecasted annual demand for their premium leather jacket is 2,000. The order-processing cost per order is $40, and the inventory holding cost is $35/item/year. How m ...

Comparison in organizationusing your current work

Comparison in Organization Using your current work organization (or an organization of interest) and a second organization in the same industry as the subject matter, research the elements of business, compare and contra ...

Supply chain management strategy proposaldevelop a supply

Supply Chain Management Strategy Proposal Develop a Supply Chain Management Strategy Proposal, specifically dealing with the following scenario. The scenario centers around the choice of a location for a new distribution ...

Individual assignment reflective essaythe individual

Individual Assignment: Reflective Essay The individual written assignment will take the form of individual reflection upon some aspect of your personal experience of management and organisations. Throughout the module, a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro