Alignment and Leadership in ICT Strategies of Private and Public Organizations

184 Pages·2015·3.01 MB·English

by  Hyvönen, Harri

J Y V Ä S K Y L Ä S T U D I E S I N C O M P U T I N G
216
Harri Hyvönen
Alignment and Leadership
in ICT Strategies of Private
and Public Organizations
JYVÄSKYLÄ STUDIES IN COMPUTING 216
Harri Hyvönen
Alignment and Leadership
in ICT Strategies of Private
and Public Organizations
Esitetään Jyväskylän yliopiston informaatioteknologian tiedekunnan suostumuksella
julkisesti tarkastettavaksi yliopiston Agora-rakennuksen auditoriossa 1
elokuun 21. päivänä 2015 kello 12.
Academic dissertation to be publicly discussed, by permission of
the Faculty of Information Technology of the University of Jyväskylä,
in building Agora, auditorium 1, on August 21, 2015 at 12 o’clock noon.
UNIVERSITY OF JYVÄSKYLÄ
JYVÄSKYLÄ 2015
Alignment and Leadership
in ICT Strategies of Private
and Public Organizations
JYVÄSKYLÄ STUDIES IN COMPUTING 216
Harri Hyvönen
Alignment and Leadership
in ICT Strategies of Private
and Public Organizations
UNIVERSITY OF JYVÄSKYLÄ
JYVÄSKYLÄ 2015
Editors
Timo Männikkö
Department of Mathematical Information Technology, University of Jyväskylä
Pekka Olsbo, Ville Korkiakangas
Publishing Unit, University Library of Jyväskylä
URN:ISBN:978-951-39-6232-6
ISBN 978-951-39-6232-6 (PDF)
ISBN 978-951-39-6231-9 (nid.)
ISSN 1456-5390
Copyright © 2015, by University of Jyväskylä
Jyväskylä University Printing House, Jyväskylä 2015
(cid:3)

ABSTRACT
Hyvönen, Harri
Alignment and Leadership in ICT Strategies of Private and Public
Organizations
Jyväskylä: University of Jyväskylä, 2015, 77 p. (+articles)
(Jyväskylä Studies in Computing
ISSN 1456-5390; 216)
ISBN 978-951-39-6231-9 (nid.)
ISBN 978-951-39-6232-6 (PDF)
Finnish summary
Diss.

This research contains case studies of information and communications tech-
nology (ICT) in the strategic reference framework of the investigated organiza-
tions operates in both private and public sector organizations. The dissertation
includes five publications, each associated with information management pro-
cesses, leadership, strategic frame of reference, or the methods used.
Finnish small and middle-sized municipalities have limitations concerning
the utilization of information technology because their limited resources are
dedicated on running the existing systems. Smaller municipalities, especially,
have worked in relative isolation, and there has not been any wider networked
model between their organizations. The dissertation suggests a concrete model
about how a small municipality could plan and implement information man-
agement and its related architecture. Small municipalities also have the option
of joining into larger units or a network, where development projects can be
jointly carried out, financed and achieved results with lower investments.
Strategic positioning of ICT has begun to change gradually from the 1990's
to the present. Information and communications technology strategies today are
well integrated into the overall strategy framework and its implementation,
especially in the private sector. Large Finnish companies operate well in a glob-
alized environment and form part of large networks in which information tech-
nology is not only enabler for global businesses but also an important competi-
tive factor. Companies in product businesses and related maintenance services
have entered the outsourcing business by offering their customers ICT-based
services. Traditional support functions such as IT and Human Resources have
suddenly become an important part of companies' business enablers.
The role of outsourcing in increasing the efficiency of ICT remains still sig-
nificant. Whilst outsourcing has been carried out and widely studied during
decades, a large number of outsourcing projects fail. In our studies, we found
that when outsourcing projects in challenging markets are launched little atten-
tion is paid to how work is to be organized and what kind of talent is needed.

Keywords: Information Management, outsourcing, strategy alignment,
leadership, municipalities, services.
Author’s address Harri Hyvönen
University of Jyväskylä
Dept. of Mathematical Information Technology
University of Jyväskylä, Finland
[email protected]

Supervisors Professor, Dean Pekka Neittaanmäki
Dept. of Mathematical Information Technology
University of Jyväskylä, Finland

Professor, Director Pasi Tyrväinen
Agora Center
University of Jyväskylä, Finland

Professor, Chiroro Watanabe
Visiting Professor, National University of Singapore
Visiting Professor, University of Jyvaskyla, Finland
Research Scholar, Intl. Institute for Applied Systems
Analysis (IIASA)
Professor Emeritus, Tokyo Institute of Technology, Japan

Reviewers Professor, Director, Veikko Seppänen
Martti Ahtisaari Institute
University of Oulu, Finland

PhD, Toshihiko Nomi
Ministry of Economy, Industry and Trade, Japan

Opponent Professor Emeritus, Pertti Järvinen
Department of Computer Sciences
University of Tampere, Finland
(cid:3)

ACKNOWLEDGEMENTS
To get this dissertation completed has proved to be a long and sometimes pain-
ful process. Without the strong support of my supervisors Prof. Pekka
Neittaanmäki and Prof. Pasi Tyrväinen, I would not have been able to reach my
goal to get this dissertation done. Prof. Neittaanmäki also deserves special
thanks, as he encouraged me to continue my studies after a long period of daily
work in ICT leadership positions in private companies. Prof. Chihiro Watanabe
has given me a lot of valuable innovative advice and help with his vast experi-
ence in innovation and IT research.
I am also grateful to Prof. Jukka Heikkilä, Dr. Tomi Dahlberg and Dr. Ani-
cet Yalaho for their guidance, especially in the beginning of my thesis work. I
also would like to acknowledge the assistance of Mrs. Päivi Hokkanen, Mr.
Jouko Nieminen and Mr. Mikko Helminen for my thesis' articles, in which they
have co-operated.
Without the support of my colleagues at work, I wouldn´t have been able
to bring this thesis to a completion. Especially Dr. Mikko Kosonen gave me ex-
ample and made me believe that PhD studies can be done beside daily work.
Also Mr. Tapio Niskanen, Mr. Petri Tanskanen, Mr. Jouni Laiho and Mr. Olli
Nastamo have supported me in an invaluable way. I am very grateful to
Avance EMBA team for innovative working environment in the beginning of
the dissertation work. Also thanks to several anonymous case organizations
and to persons interviewed in them.
I would like to thank my mother, Leila Hyvönen, for her sponsorship and
belief in me during the past 50 years. And especially, my warmest thanks to my
sons Iiro and Ville, who have given me a lot of energy. The last but not the least,
the most important person, who has enabled me to continue my studies is my
lovely wife Anne. She has always cheered up, encouraged and pushed me for-
ward to continue my dissertation work.

Jyväskylä 10.5.2015
Harri Hyvönen
FIGURES
FIGURE 1 Relationships between articles .................................................... 14
FIGURE 2 Strategic Alignment Model - SAM ............................................. 22
FIGURE 3 Networked collaboration models ............................................... 25
FIGURE 4 The CIO role and key competences in organization
ICT management ........................................................................... 29
FIGURE 5 The CIO role comparison between the public and the
private sector 1980-2010 ............................................................... 53
FIGURE 6 Lead-organization hub model ..................................................... 55

TABLES
TABLE 1 Strategies for Finnish public organizations ............................... 16
TABLE 2 Key focus areas for Information Management 1981-2020 ....... 19
TABLE 3 Case studies in the dissertation ................................................... 34
TABLE 4 The key findings and contribution ............................................. 49
(cid:3)

CONTENTS
ABSTRACT
ACKNOWLEDGEMENTS
FIGURES AND TABLES
CONTENTS
LIST OF ARTICLES
1 INTRODUCTION .............................................................................................. 11
1.1 Research questions ................................................................................... 13
1.2 Relationships of the included articles .................................................... 14
2 THEORETICAL BACKGROUND ................................................................... 15
2.1 Public sector ICT ....................................................................................... 15
2.2 Strategy and ICT alignment .................................................................... 18
2.3 Strategic Alignment Model (SAM) ......................................................... 21
2.4 Collaboration networks governance ...................................................... 24
2.5 ICT outsourcing ........................................................................................ 26
2.6 ICT leadership and CIO role ................................................................... 28
3 RESEARCH METHODOLOGY AND SCOPE ............................................... 32
3.1 Literature Review Process ....................................................................... 32
3.2 Qualitative analyses and case studies .................................................... 33
3.3 Selection of the target group ................................................................... 36
3.4 Data collection and analysis .................................................................... 36
4 OVERVIEW OF THE ARTICLES ..................................................................... 39
4.1 Article I: Why to Outsource? Case municipality’s IS in one
region of Finland ....................................................................................... 39
4.2 Article II: Information System Implementation Model and
Observations: Case Health Care, Social Services and Other
Service Processes in Smaller Municipalities ......................................... 41
4.3 Article III; Operations & Maintenance Business Model
Transformation – Multiple Case Studies ............................................... 42
4.4 Article IV: Significance of Supplier Selection Criteria Evolvement
in IT Outsourcing to Emerging Economies – Lessons from a
Global IT Outsourcing Project ................................................................ 44
4.5 Article V: Tasks and Roles of CIOs: An Evolutionary Model
and Its Use ................................................................................................. 46
4.6 Contributions in joint articles .................................................................. 48
5 CONCLUSIONS, LIMITATIONS AND FURTHER STUDY ....................... 49
5.1 Contributions of the study ...................................................................... 49
5.2 Strategic alignment ................................................................................... 50
5.3 ICT leadership and networked IM ......................................................... 51