Optimizing decentralized organization model in cross-border IT Development - Case Handelsbanken
Bäckström, Mika (2019)
Bäckström, Mika
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201904034332
https://urn.fi/URN:NBN:fi:amk-201904034332
Tiivistelmä
Svenska Handelsbanken (SHB) is a private sector company that has applied decentralization as an organization and operating model since 70’s. The model that professor Jan Wallander had investigated a lot is still valid in 2019 with all its principles. However, there are pressure from external factors such as EU banking regulators and authorities that is giving pressure for certain centralization. The old decentralized structures are slow and causes certain issues for the requirements of today. This pressure seems to steer SHB to have more cross-border and global IT development initiatives in the future, which makes the model interesting subject to be examined from IT developments point of view. The aim of the study is to find the benefits and issues of the Handelsbanken Way and from thereon to find actions and factors that could facilitate cross-border and global IT development in the future.
The study is case study, where the author is part of the organization working closely with the subject, and therefore it has features of action research as well. The data were collected with deep-interviews from eighth participants within the group, who represented three countries, and business units that has operations in several different countries. The participants represent wide range of levels from top management to the hands-on projects.
The outcome is that Handelsbanken Way is still valid strategy and it still is Handelsbanken’s competitive advantage. The decentralization has led to decentralized IT as well and decentralized solutions, which is not ideal in today’s world. It can be clearly seen that the IT will get more centralized in the future, along with certain other functions and processes. The technology needs to be updated into the internal guidance document, Our Way. The cross-border and global IT development requires a supportive and encouraging cost and benefit allocation in order to get more popular within the group. There are already initial steps towards recommended actions, such as thinking in group level which parts can utilize common systems and processes and which has local features that still justifies local systems and processes as well. Also, SAFe and agile methodologies implementations are already in early stages in the group. The sub-optimization is a problem when it comes to global and common solutions, that requires actions. The proposed means are clearer communication, supportive costs and benefits allocation and little bit increased top-down management.
The study is case study, where the author is part of the organization working closely with the subject, and therefore it has features of action research as well. The data were collected with deep-interviews from eighth participants within the group, who represented three countries, and business units that has operations in several different countries. The participants represent wide range of levels from top management to the hands-on projects.
The outcome is that Handelsbanken Way is still valid strategy and it still is Handelsbanken’s competitive advantage. The decentralization has led to decentralized IT as well and decentralized solutions, which is not ideal in today’s world. It can be clearly seen that the IT will get more centralized in the future, along with certain other functions and processes. The technology needs to be updated into the internal guidance document, Our Way. The cross-border and global IT development requires a supportive and encouraging cost and benefit allocation in order to get more popular within the group. There are already initial steps towards recommended actions, such as thinking in group level which parts can utilize common systems and processes and which has local features that still justifies local systems and processes as well. Also, SAFe and agile methodologies implementations are already in early stages in the group. The sub-optimization is a problem when it comes to global and common solutions, that requires actions. The proposed means are clearer communication, supportive costs and benefits allocation and little bit increased top-down management.